What Are the Implications of South Korea's New Emission Reduction Target?
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Synopsis
South Korea's new carbon reduction target, while posing potential challenges to local businesses, also presents a significant opportunity for a transformative green transition. Experts weigh in on what this means for the economy and industries moving forward.
Key Takeaways
- South Korea aims for a 53-61% reduction in emissions by 2035.
- Key industries may face significant challenges due to increased costs.
- Government support is essential for businesses to adapt.
- The target will be disclosed at COP30 in Brazil.
- Experts warn of potential production relocations or shutdowns.
Seoul, Nov 11 (NationPress) South Korea's recent carbon reduction goal announced this week is anticipated to create obstacles for local enterprises amid ongoing global economic volatility, while simultaneously presenting a chance for a comprehensive green transformation that could yield long-term benefits, experts indicated on Tuesday.
On Monday, the Presidential Commission on Carbon Neutrality and Green Growth disclosed its endorsement of a target to decrease South Korea's greenhouse gas emissions by 53-61 percent from 2018 levels by 2035.
This nationally determined contribution (NDC) target, approved during a Cabinet meeting on Tuesday, is set to be officially presented at the 30th United Nations Climate Change Conference (COP30) in Belem, Brazil, ongoing from Monday until Nov. 21, according to reports from Yonhap news agency.
The business sector is apprehensive that the carbon reduction strategy could severely impact critical industries such as automobiles, steel, petrochemicals, and cement, as they will encounter increased financial strains in establishing carbon reduction infrastructure and acquiring emission credits.
"While adapting to shifts in the global economic landscape, particularly U.S. tariff regulations, has become urgently important, a reduction target of 53 to 61 percent by 2035 will impose significant challenges for companies," stated a collective of 14 business associations in a joint declaration.
The business organizations highlighted that relevant reduction technologies are not yet fully commercialized, urging the government to implement further support initiatives for businesses, such as avoiding hikes in electricity prices.
Experts supported this perspective, arguing that under the current industrial landscape, the new emission policy might compel firms to move their production overseas or even cease operations.
Yoo Seung-hoon, an energy policy professor at Seoul National University of Science and Technology, remarked that the NDC target will inevitably result in substantial setbacks for industries, emphasizing that business leaders likely felt a sense of "panic" following the announcement.
"Local firms will have to either reduce domestic production or shift their manufacturing operations abroad," Yoo shared with Yonhap News Agency regarding the NDC target's implications for South Korean industries.
"For instance, the steel sector must incorporate hydrogen in its production process to align with the target, which will incur higher costs and present challenges in sourcing the gas," the energy professor explained.
Point of View
My perspective highlights the balance between environmental responsibility and economic stability. The ambitious carbon reduction target set by South Korea is necessary for global climate commitments, yet it poses significant challenges for local industries. A supportive approach from the government is crucial to navigate this transition effectively, ensuring that businesses can adapt without compromising economic vitality.
NationPress
02/01/2026
Frequently Asked Questions
What is South Korea's new carbon reduction target?
South Korea aims to reduce its greenhouse gas emissions by 53-61 percent from 2018 levels by 2035, as part of its commitment to carbon neutrality.
How will this target affect local businesses?
The target may impose financial burdens on key sectors such as automobiles and steel, potentially leading to production cuts or relocations abroad.
What support do businesses need from the government?
Businesses are calling for additional support measures, including avoiding electricity rate increases, to help them adjust to the new carbon reduction policies.
When will the target be officially presented?
The target will be officially unveiled at the 30th United Nations Climate Change Conference (COP30) in Belem, Brazil.
What challenges are anticipated in achieving this target?
Challenges include the need for new technologies that are not yet commercialized and the higher costs associated with transitioning to greener production methods.
