SK cooperates with UAE to respond to climate change

SK Group Chairman Chey Tae-won, front center left, poses with Mubadala CEO Khaldoon Al Mubarak after signing a memorandum of understanding on overcoming the climate change crisis at the Presidential Palace in Abu Dhabi, UAE, Sunday (local time), overseen by President Yoon Suk-yeol, back row third from left and UAE President Mohammed bin Zayed Al Nahyan, back row fourth from left, along with other Korean and UAE business officials. Courtesy of the presidential office

By Kim Hyun-bin

SK Group will enhance cooperation with Mubadala Investment, a sovereign wealth fund of the United Arab Emirates (UAE), to overcome the climate change crisis, according to the company Monday.

The company announced that it had signed a memorandum of understanding (MOU) with Mubadala on the establishment of the Voluntary Carbon Market (VCM) Asia Partnership at the Presidential Palace in Abu Dhabi, UAE, Sunday (local time).

SK Group Chairman Chey Tae-won, who concurrently serves as chairman of the Korea Chamber of Commerce and Industry (KCCI), signed the MOU with Mubadala CEO Khaldoon Al Mubarak.

The MOU reflects the will of the Korean government which has emphasized various means to prepare for carbon neutrality not only at the government level but also in the private sector.

The VCM is a privately led market where carbon credits certified by private organizations are traded. When activated, it is expected that companies with existing carbon reduction obligations and companies and institutions that do not have obligations will voluntarily participate in social responsibility and environmental protection as carbon credits cost money to purchase.

The two companies decided to form a consultative body to discuss detailed cooperation plans. In order to activate the voluntary carbon market, it has been important to establish measures for increasing the reliability and transparency of carbon reduction certification.

The two companies agreed on the need for a carbon market tailored to the characteristics of Asian companies in order to attract their active participation. Accordingly, the direction for future cooperation is to go beyond cooperation at the level of SK and Mubadala, and instead create common interests to enable participation of more countries and private companies in the Asian region.