Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Reporter's Notebook Gov't pushing forward daring carbon neutrality measures
Hyundai Motor developed the fuel cell electric vehicle (FCEV), XCIENT, a heavy-duty truck. Courtesy of Hyundai Motor Group
By Kim Hyun-bin
By Kim Hyun-bin
The Moon Jae-in administration has been heavily promoting its carbon neutrality efforts both on the local and global stages, but when looking into how the measures will affect many of Korea's companies, they seem highly impractical.
What is the real purpose of the government's carbon neutrality drive? Is it just empty promises before the current administration ends early next year?
To fulfill the 2050 carbon neutrality goal set by the government, some experts are saying that Korea's conglomerates will have to reduce production. Some have called the government measures “impractical” and say that the goal was set with little consideration of the actual situations of local companies.
While all agree that climate change is a serious issue, certain experts have gone so far as to lambast Moon's plan, claiming that “the government's reckless eco-friendly drive will cause the local industrial base to collapse.”
Despite such strong opposition, the government held a cabinet meeting last week and passed a new 2050 carbon neutrality plan and set its reduction goal. To meet the 2050 standard, domestic industries will need to reduce greenhouse gas emissions by 209.4 million tons each year.
Korea's industries produced 260 million tons of greenhouse gases (GHGs) in 2018 alone, but the government's 2050 carbon neutrality goal has set an annual emission allowance of 51.1 million tons ― a reduction of 80.4 percent.
Reducing GHG emissions by this much will force down the top 20 conglomerates' emissions to zero by 2050, when considering 2018 emission levels. Not only steelmakers, such as POSCO and Hyundai Steel, which are known to emit the most GHGs, but even Samsung Electronics, SK hynix, and the four major petrochemical companies of SK Energy, GS Caltex, S-Oil and Hyundai Oil Bank, as well as the top cement companies, will need to shutter certain operations.
Even Samsung Display and LG Display, which provide panels for TVs and smartphones worldwide, and LG Chem and Lotte Chemical, will also need to stop production to be able to reach the government's neutrality goal.
The Federation of Korean Industries (FKI) compared 207 companies from 2016 through 2020. In 2018, the companies reached record sales and carbon emissions, but in 2020, after the COVID-19 outbreak, sales and carbon emissions dropped 7 percent.
“The results show that in order to drastically reduce carbon emissions, there needs to be a decrease in production,” an FKI official said. “There are worries that a reduction in production could drastically reduce local companies' competitiveness.”
Even though some industry experts and scholars are strongly against the move, why does the government seem to have a “my way or the highway” approach?
Of course, the carbon neutrality issue has been a rising global trend, with more countries getting onboard. Carbon neutrality ― which refers to having a balance between the amount of carbon emissions released into the atmosphere and the amount of carbon emissions absorbed ― is recognized as the right path for tackling climate change. By some, it is seen as the bare minimum needed to preserve the earth for future generations. But it should be achieved at a pace that is suitable for any respective country's government, businesses and people.
Other countries, such as China, Russia and even Japan, are taking a slower pace to tackling climate change. Even in the U.S., some lawmakers are attempting to put the brakes on the Biden administration's plan to achieve net-zero emissions by 2050. While climate change is a pressing concern for all, the pace to reaching carbon neutrality in Korea should be set appropriately.