Industry: "Raising Carbon Reduction Targets Poses Excessive Burden on Industry... Government Incentives Needed"

Fourteen economic organizations have pointed out the practical burdens faced by the industrial sector regarding the government's and the ruling party's push to raise the national greenhouse gas reduction target (NDC), and have called for stronger government support.

The Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea Employers Federation, and 11 other organizations issued a joint statement on November 10, stating, "In a situation where external conditions such as U.S. tariff policies are rapidly changing, and reduction technologies in the industrial sector are not yet fully commercialized, raising the 2035 reduction target to 53-61% represents a significant burden."

These organizations emphasized, "While responding to the climate crisis and achieving carbon neutrality are universally agreed-upon goals, a system centered on incentives rather than regulations is necessary for companies to continue transition investments in a predictable environment," and added, "The government must provide comprehensive support for technology development and commercialization."

They also stated, "As the burden on the energy transition sector grows in the era of artificial intelligence (AI), concerns about increased electricity demand and rates are rising," and stressed, "The increase in electricity rates should be minimized and announced in advance so that companies can prepare accordingly."

They further added that it is necessary to establish practical measures for industries facing heavy reduction burdens, such as providing tax and financial support and expanding infrastructure for the supply of carbon-free energy.

To maintain the competitiveness of advanced industries such as semiconductors and AI, as well as key industries like steel and petrochemicals, they proposed that the government should take the initiative in: ▲ expanding carbon-free energy infrastructure ▲ expanding transmission, distribution, and storage facilities ▲ commercializing reduction technologies such as electrification and hydrogen-based steelmaking ▲ creating low-carbon markets ▲ improving the KS system.

The economic organizations stated, "The government must strike a balance between the environment and the economy and establish policies that enable a virtuous cycle of carbon reduction and industrial growth," and added, "The business community will also actively cooperate in responding to the climate crisis and promoting national growth in line with the K-GX (Korean Green Transformation Strategy)."

In addition to the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, and the Korea Employers Federation, the joint statement was also joined by the Korea International Trade Association, Korea Federation of SMEs, Korea Federation of Mid-sized Enterprises, Korea Iron & Steel Association, Korea Chemical Industry Council, Korea Cement Association, Korea Petroleum Association, Korea Nonferrous Metals Association, Korea Paper Manufacturers Association, Korea Chemical Fiber Association, and Korea Automobile & Mobility Association.

The previous day, the government and the ruling party discussed a plan to reduce greenhouse gas emissions by 53-61% compared to 2018 levels by 2035, which is an upward revision from the previously proposed target of 50-60%.

This content was produced with the assistance of AI translation services.