Seoul, Dec. 12 (BNA): President Moon Jae-in on Friday encouraged private companies to become carbon neutral, and pledged that the government would provide financial and regulatory support for their efforts to reduce greenhouse gas emissions.
Moon made the remark at a meeting on carbon neutrality with CEOs of about 40 large and medium-sized companies, including Hyundai Motor, LG Display and SK Innovation, South Korea’s Yonhap news agency reported.
Moon said the government will use its carbon-neutral policy to increase the competitiveness of the manufacturing industry.
To that end, Moon said, the government will increase tax cuts for corporate utilities and research spending. He said the government is also aiming to develop the carbon-neutral industry into a next-generation engine for growth.
“The government will make bold investments in infrastructure for new energy solutions, such as hydrogen, renewable energy and power grids,” Moon said.
Meanwhile, Moon said the government will spare no effort to secure stable supplies of raw materials.
South Korea ended a decision to cut greenhouse gas emissions by 40% from 2018 levels by 2030. The nation also affirmed its goal of achieving carbon neutrality by 2050, as the nation begins to address the challenge of simultaneously responding to climate change and achieving sustainable growth.
Moon pledged that South Korea would complete the phase-out of coal power generation by 2050.
The Ministry of Industry on Friday laid out detailed action plans to achieve zero emissions targets and better support private companies in accelerating structural transformation.
The government has pledged to shut down 24 old coal-fired plants by 2034 before fully phasing them out, and make renewable energy responsible for more than 70 percent of the country’s total energy consumption by 2050, according to the Department of Trade, Industry and Energy.
As of 2018, renewable energy accounted for 3.6 percent of the country’s energy portfolio.
The ministry said it also plans to produce enough clean hydrogen to cover 60 percent of the country’s demand by 2050. As of 2020, South Korea has not produced clean hydrogen.
In an effort to support the private sector, the government will nearly double the budget for research and development on carbon neutrality to 408.2 billion won (US$345.83 million) in 2022 from 213 billion won this year, and increase investment in various related projects.
The public and private sectors are expected to collectively invest more than 94 trillion won by 2025, according to the ministry.
MI