South Korea's Business Circle Calls for Detailed Plans to Achieve Greenhouse Gas Emissions Reduction Goals

Strategic Insights -

The South Korean government's ambitious goal to cut greenhouse gas emissions by 30% from expected levels in 2020 is facing resistance from the business circle, with the Federation of Korean Industries warning that the target is too steep and could undermine manufacturers' competitiveness. The country's largest corporate lobby, the Federation of Korean Industries, has called for detailed plans for each industry to ensure the success of the proposed scheme. The Korean Chamber of Commerce and Industry has also expressed concerns that the plan could impose direct and indirect burdens on the nation.

Key Takeaways:

  • The South Korean government aims to reduce greenhouse gas emissions by 30% from expected levels in 2020, setting one of the most aggressive voluntary goals to roll back climate change.
  • The Federation of Korean Industries has argued that the target is too steep and that the heavy cost involved could seriously undermine manufacturers' competitiveness.
  • The Korean Chamber of Commerce and Industry has called for the government to provide sufficient explanation of the plan and seek public endorsement.
  • Samsung Electronics Co. plans to spend 5.4 trillion won (US$4.68 billion) by 2013 to upgrade facilities that help reduce greenhouse emissions.
  • Hyundai Motor Co. and its affiliate Kia Motors Corp. are planning to spend 500 billion won by 2013 to reduce carbon dioxide emissions.
  • The country's annual emissions could rise to 813 million tons by 2020 in the absence of measures to curb carbon output, a committee under the presidential office forecast earlier.
  • South Korea emitted 594 million tons of carbon dioxide in 2005, ranking ninth among member nations of the Organization for Economic Cooperation and Development (OECD).
  • Refinery and related sectors have expressed concerns that the plans could lead to a fall in price competitiveness in overseas markets.

Statistics:

  • The government aims to reduce greenhouse gas emissions by 30% from expected levels in 2020.
  • South Korea emitted 594 million tons of carbon dioxide in 2005, ranking ninth among member nations of the OECD.
  • The country's annual emissions could rise to 813 million tons by 2020 in the absence of measures to curb carbon output.
  • Samsung Electronics Co. plans to spend 5.4 trillion won (US$4.68 billion) by 2013 to reduce greenhouse emissions.
  • Hyundai Motor Co. and Kia Motors Corp. plan to spend 500 billion won by 2013 to reduce carbon dioxide emissions.

Sources:

  • Asia Pulse, "South Korea's business circle says government should adopt detailed plans for greenhouse emissions," Nov 17.
  • Federation of Korean Industries, "FKI argues target for cutting greenhouse gas emissions is too steep."
  • Korean Chamber of Commerce and Industry, "KCCI calls for government to provide sufficient explanation of plan and seek public endorsement."
  • POSCO Co., "POSCO official says target to cut carbon emissions in 2020 is very challenging."
  • Yonhap News Agency, "Hyundai Motor, Kia to spend 500 billion won to reduce carbon emissions by 2013."