Two-thirds of S. Korean manufacturers view carbon neutrality policy as regulatory burden: poll
Nearly two-thirds of South Korean manufacturers perceive the country's current carbon neutrality policy as a regulatory burden, a poll showed Thursday, underscoring the need for a shift toward a more incentive-based approach, Yonhap reports.
According to the recent survey conducted by the Federation of Korean Industries (FKI) on the country's leading 1,000 manufacturing companies, 64.2 percent of the 120 firms that offered responses said they consider the current carbon neutrality policy as a constraint.
Of the respondents, 31.6 percent assessed the policy as neutral. Only 4.2 percent said they see the policy as providing sufficient incentives.
The survey was conducted ahead of the government's submission of its updated Nationally Determined Contribution (NDC) for 2035 to the United Nations and the establishment of the fourth phase of the country's national emissions trading scheme.
South Korea aims to reduce greenhouse gas emissions by 40 percent from 2018 levels by 2030 under the current NDC scheme. However, 57.5 percent of respondents said they believe the target is unlikely to be achieved, while only 5 percent considered it feasible.
The FKI attributed the industry's negative outlook to the country's carbon-intensive industrial structure. As of 2022, the steel, petrochemical and cement industries, sectors that rely heavily on carbon emissions, accounted for approximately 73 percent of emissions from the industrial sector.
The federation expressed concern that the perception of the policy serving as a regulatory burden could hamper companies' business activities and undermine their global competitiveness.
As earlier reported, South Korea added nearly 200,000 jobs in April, but employment in the manufacturing sector, considered the backbone of the economy, posted its steepest on-year decline in over six years.