Value context and insight. lkm@koreatimes.co.kr
Carbon-aware policies to take shape
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By Lee Kyung-min
By Lee Kyung-min
The government will commission a study to gauge how much economic policies would contribute to its zero-carbon drive, in an early step to reduce carbon emissions to zero by 2050.
The Ministry of Economy and Finance said Sunday that a feasibility study would be initiated as early as 2021, mostly on how to measure, deter and manage greenhouse emissions.
The approach is part of a carbon-neutral policy initiative outlined by President Moon Jae-in who declared Oct. 28 that Korea would seek to reduce greenhouses gas emissions to net zero by 2050.
This will materialize through 8 trillion won ($7.1 billion) in government spending on its Green New Deal, a key part of the Korean New Deal, defined by a five-year investment of 160 trillion won.
This is to reduce reliance on coal, the largest source of energy for Korea's key industries. According to ministry data, coal accounted for 40.4 percent of the country's energy sources as of 2019, followed by nuclear power (25.9 percent) and liquefied natural gas (25.6 percent).
The ministry's plan follows a similar bill proposed by a ruling party lawmaker in July. The bill, put forward by Rep. Yangyi Won-young of the Democratic Party of Korea (DPK), seeks to have the government spending plan screened over how much greenhouse gases would be reduced after certain state-run projects are completed.
Also included are ways to have the expenditures audited over whether taxpayers' money was spent in a way that helped the country better achieve carbon neutrality.
The ministry's move is the latest part of the green drive announced Dec. 7. Deputy Prime Minister and Finance Minister Hong Nam-ki said that tax policies will be revised following a comprehensive study that will assess the feasibility of imposing a tax on carbon-related goods and activities, as well as the benefits of carbon emissions trading.
The government plan includes offering larger subsidies to firms that increase spending on research and development into energy generation, and construction and transport needed to adopt low-carbon business models promptly.
Seoul National University economist Kim So-young said the government should map out long-term plans, instead of seeking a short-term goal lacking vision.
“The effect of carbon neutral policies may not lead to an immediate improvement of the current energy utilization model, not to mention the difficulty of accurately measuring whether certain policies would reduce greenhouse gases that might have other drawbacks,” Kim said.