By Park Si-soo
The government Wednesday snubbed a call from industries to delay the introduction of a carbon emissions trading program.
The government said it will start the program next year as planned. Under the program, the government will set greenhouse gas emission quotas for energy-intensive businesses, and those successfully cutting emissions can sell the remaining rights to those failing to meet their obligations.
The government's reaction came a day after the Federation of Korean Industries (FKI), a business lobby group, called for delay of its implementation to 2020, arguing that its earlier adoption will severely industries' competitiveness.
The Ministry of Environment, however, said it will carry out the trading scheme as scheduled.
"The carbon emissions trading program was decided by law after taking various measures to reach social consensus. Thus, we will implement it as planned," the ministry said in a joint statement with the Ministry of Trade, Industry and Energy and the Ministry of Strategy and Finance.
The ministry said it will seek various measures to reduce the financial burden on affected companies.
It noted that the FKI's estimation of additional tax was largely inflated, saying the actual amount is estimated at around 1.1 trillion won.
The ministry said the trading program is already in place in 38 countries, including the United States, China, Japan and the European Union, underscoring its need to join the global movement to reduce greenhouse gas emissions.
Park Chan-ho, a FKI senior executive, said that if the carbon tax is implemented, it will hurt industrial competitiveness.
The FKI co-hosted the event with the Korea Chamber of Commerce and Industry and 21 other industrial lobby groups, including the Korea Iron and Steel Association, the Korea Semiconductor Industry Association and the Korea Automobile Association.
"Across the world, governments are softening regulations. We urge the government to take note and jointly develop eco-friendly technologies with the industries," he said.
Under the program, the FKI estimates, Korean companies will have to pay additional taxes of 27.5 trillion won ($26.6 billion) between 2015 and 2017.
The lobby group said the nation's competiveness lies in manufacturing, an industry that is carbon emission-intensive.
It said Korea isn't a major per capita greenhouse-gas emitter compared to China, the United States and Japan, adding the carbon tax will surely lead to a hike of energy costs for both businesses and consumers.
As of 2013, China was the world's biggest greenhouse gas emitter with 28.6 percent, followed by the United States with 15.1 percent, India with 5.7 percent and Russia with 3.8 percent, according to data from the FKI. Korea came seventh with 1.8 percent.
The carbon emission trading program was first included on the state agenda in August 2008 by then President Lee Myung-bak who promoted a "Green Growth" strategy. One month later, the government proclaimed that the country will reduce its greenhouse gas emissions by 30 percent by 2020.
The government Wednesday snubbed a call from industries to delay the introduction of a carbon emissions trading program.
The government said it will start the program next year as planned. Under the program, the government will set greenhouse gas emission quotas for energy-intensive businesses, and those successfully cutting emissions can sell the remaining rights to those failing to meet their obligations.
The government's reaction came a day after the Federation of Korean Industries (FKI), a business lobby group, called for delay of its implementation to 2020, arguing that its earlier adoption will severely industries' competitiveness.
The Ministry of Environment, however, said it will carry out the trading scheme as scheduled.
"The carbon emissions trading program was decided by law after taking various measures to reach social consensus. Thus, we will implement it as planned," the ministry said in a joint statement with the Ministry of Trade, Industry and Energy and the Ministry of Strategy and Finance.
The ministry said it will seek various measures to reduce the financial burden on affected companies.
It noted that the FKI's estimation of additional tax was largely inflated, saying the actual amount is estimated at around 1.1 trillion won.
The ministry said the trading program is already in place in 38 countries, including the United States, China, Japan and the European Union, underscoring its need to join the global movement to reduce greenhouse gas emissions.
Park Chan-ho, a FKI senior executive, said that if the carbon tax is implemented, it will hurt industrial competitiveness.
The FKI co-hosted the event with the Korea Chamber of Commerce and Industry and 21 other industrial lobby groups, including the Korea Iron and Steel Association, the Korea Semiconductor Industry Association and the Korea Automobile Association.
"Across the world, governments are softening regulations. We urge the government to take note and jointly develop eco-friendly technologies with the industries," he said.
Under the program, the FKI estimates, Korean companies will have to pay additional taxes of 27.5 trillion won ($26.6 billion) between 2015 and 2017.
The lobby group said the nation's competiveness lies in manufacturing, an industry that is carbon emission-intensive.
It said Korea isn't a major per capita greenhouse-gas emitter compared to China, the United States and Japan, adding the carbon tax will surely lead to a hike of energy costs for both businesses and consumers.
As of 2013, China was the world's biggest greenhouse gas emitter with 28.6 percent, followed by the United States with 15.1 percent, India with 5.7 percent and Russia with 3.8 percent, according to data from the FKI. Korea came seventh with 1.8 percent.
The carbon emission trading program was first included on the state agenda in August 2008 by then President Lee Myung-bak who promoted a "Green Growth" strategy. One month later, the government proclaimed that the country will reduce its greenhouse gas emissions by 30 percent by 2020.
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