Korea commits $745 billion for carbon neutrality, sustainable growth

Korea will invest a quadrillion won ($745 billion) to achieve its carbon neutrality goals and promote sustainable economic growth by 2035, with the private sector set to invest an additional 220 trillion won, the Ministry of Climate, Energy and Environment said Wednesday.

Under the Korea-Green Transformation (K-GX) initiative, the government plans to facilitate the adoption of low-carbon production processes in major greenhouse gas-emitting industries, including steel, petrochemicals, cement, semiconductors, displays and refining, the Climate Ministry said in a press release.

The government will use the funds to secure 100 gigawatts of renewable energy capacity by 2030 through the development of solar and wind power generation facilities and by expanding the power grid, it said.

Korea aims to reduce its greenhouse gas emissions by 53 to 61 percent from 2018 levels by 2035, while targeting carbon neutrality by 2050.

As part of its electrification drive, Seoul also plans to expand government subsidy programs to ensure that more than 70 percent of new vehicles registered in the country are all-electric or hydrogen fuel-cell electric vehicles by 2035.

Some of the funds will be used to help industries prepare for climate risks, including financial support for aging industrial complexes as well as the shipbuilding and logistics sectors, which are particularly vulnerable to extreme weather conditions, the ministry added.

In the private sector, Samsung Electronics, LG Electronics, Posco Holdings and Hanwha Qcells presented plans to adopt renewable energy sources and develop decarbonization technologies to promote sustainable growth.

The government, meanwhile, plans to provide tax incentives and ease regulations to encourage private-sector companies to participate in the 10-year K-GX initiative.

Yonhap