Korea to ease emission reduction targets for firms by expanding nuclear use

The Korea Times

The Korea Times

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Thu, November 30, 2023 | 10:35

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Korea to ease emission reduction targets for firms by expanding nuclear energy use

Posted : 2023-03-21 16:48

Updated : 2023-03-22 11:52

Kim Sang-hyup, head of the 2050 Carbon Neutrality and Green Growth Commission, speaks during a press briefing at the Sejong Government Complex, Tuesday. Yonhap

By Lee Kyung-min

Korea has opted to lower its greenhouse gas emission targets for industries by expanding nuclear and renewable energy use in a move to ease the burden on local manufacturers, a presidential commission said Tuesday.

According to the plan announced by the 2050 Carbon Neutrality and Green Growth Commission, a presidential committee chaired by Prime Minister Han Duck-soo, the government will spend $41.8 billion by 2027 to lower the nationally determined contribution (NDC) target for industries to 11.4 percent.

NDC is a non-binding national plan highlighting climate change mitigation, including targets to reduce greenhouse gas emission levels outlined by the United Nations body.

The new target is down from the previous goal of 14.5 percent set under the former Moon Jae-in administration in 2021. Instead, the target for the nuclear energy and renewables sector will be raised to 45.9 percent, up from 44.4 percent.

The target for the entire country, however, will remain the same at 40 percent. This means Korea will not revise its previous plan whereby the targeted greenhouse gas emission amount will be lowered to 436 million tons by 2030, down from 727 million tons in 2018.

It is the first carbon emission reduction measure to be announced by the Yoon Suk Yeol administration. The presidential committee is made up of a dozen government ministries and agencies, including the industry, finance, environment, land ministries.

Government officials say the eased greenhouse gas reduction targets for local manufacturers will be compensated by Korea's stronger global cooperation in environmental protection measures and technological developments such as carbon capture and storage (CCS) methods.

But critics say the plan prioritizes the interests of fossil-fuel-reliant industries, neglecting the uncertainties inherent in the development of new technology and political and diplomatic challenges in reaching a global consensus.

Criticism remains over the feasibility of the plan, due mostly to Korea's heavier dependence on manufacturing industries for growth, compared to its European peers and the U.S. Over a quarter, or 28.4 percent, of Korea's growth is underpinned by manufacturers, far greater than the European Union (16.4 percent) and the U.S. (11 percent).

Businesses welcomed the measure, but stressed that tax and policy incentives should promptly follow in order to foster facility and technology investments to lower production costs to maintain their competitive edge on the global stage.

Emission levels by various industries will subsequently be raised to 233.7 million tons by 2030 from 222.6 million tons.

"The timeline seems a bit tight, since most of the local firms have yet to transition to green, renewable-based manufacturing," a steel industry source said. "The downward revision is certainly a relief, but the desired results might not come without hefty investments for rapid technological developments."

The Federation of Korean Industries (FKI) said that Tuesday's measure is a step in the right direction, but added that emissions will not be dramatically lowered, unless preceded by the full commercialization of ground-breaking technologies.

"The government should provide assistance to local firms to take on the daunting, high-risk, costly tasks," an FKI official said.

The Korea Enterprises Federation (KEF) echoed the sentiment. "We are glad to say the government understands how unrealistic the previous target was. Local firms will do their best to achieve the carbon neutrality goals."

Similarly, the Korea Chamber of Commerce and Industry (KCCI) said the government should promptly outline policies for local firms to meet the daunting goal within the seven-year time constraint.

lkm@koreatimes.co.kr