10 major domestic energy companies such as SK, POSCO, Hanwha, GS, and economic research institutes have formed the’Energy Alliance’ with the aim of being carbon neutral. This is the first time a carbon-neutral alliance has been formed in which most of the private energy companies participate and even the government has been strengthened. At the inauguration ceremony held at Lotte Hotel in Sogong-dong, Jung-gu, Seoul on the 6th, SK E&S vice chairman Yoo Jeong-jun was elected as the first chairman of the Alliance. Vice-Chairman Yoo met with reporters just before the inauguration ceremony and said, “After the coal rationalization policy in 1988, it took nearly 30 years to create a de-coal society. The following is one question and one answer.
SK E&S Vice Chairman Yoo Jeong-jun elected as the first chairman of the Alliance
Jeongjun Yoo, Vice Chairman of SK E&S.
- What was the background behind the Energy Alliance?
- “If you don’t talk about carbon neutrality or ESG (environment, society, governance), you hear a villager these days. The sense of crisis I experienced in the corporate field began three to four years ago. Until now, carbon neutrality has sounded like a distant story, but it is now a reality that has come before me. Representatively, the Bank of Korea last month advised financial companies to gradually reduce their exposure to high-carbon industries worth 411 trillion won (amount exposed to losses that can occur in all transactions, such as loans and investments). This means that investment was concentrated in industries with high carbon intensiveness. Domestic companies should also move away from the decarbonization center. There is a sense of crisis that if we do not evolve, we will become the subject of revolution.”
- Isn’t this an area where the government should go ahead of the private sector?
- “For carbon neutrality, timing is important along with policy direction. You shouldn’t be too far behind or too far ahead of the global trend. We will act as a policy partner so that we can control this timing well. It is not intended to block government policies on behalf of the energy industry. The goal is to propose an efficient decarbonization policy to the government and cooperate at the same time. ”
- What is the global trend regarding carbon neutrality?
- “The Japanese government and companies have started a pilot project to produce and bring hydrogen in Australia. Last week, the US Senate and House of Representatives jointly launched tax aid for hydrogen. When the price per ton of carbon credits reaches 100 dollars, new economic feasibility is created. The industrial structure is changing in earnest. 87% of the domestic emission carbon comes from the energy industry. The energy industry must be led to discuss a carbon-neutral strategy.”
- “We plan to accurately identify carbon-neutral trends through global networks such as international organizations such as the International Energy Agency (IEA) and opinion leaders. Next, it plans to create and present a Korean-style carbon neutral scenario. The Greenhouse Gas Reduction Target (NDC) must be resubmitted to the United Nations by the end of this year.”
CEO-level personnel from each company attended the inauguration ceremony on this day. Ja-Yong Koo, E1 Chairman, SK E&S Vice Chairman Yoo Jeong-joon, DL Energy Vice Chairman Kim Sang-woo, DL Energy Vice Chairman Ki-seop Jeong, POSCO Energy President, Hanwha Energy Jeong In-seop, GS Energy President Yoo Yong-soo Jeong, Doosan Heavy Industries & Construction President, Kim Dong-wook Hyundai Motor Vice President, Song Won-pyo Hyosung Heavy Industries vice president, Hyosung Heavy Industries vice president, Yoo-Seok Yoo, Hyundai Research Institute Such as the ledger.
The launch ceremony of the Energy Alliance for the realization of a carbon neutral initiative in 2050 was held at Lotte Hotel in Jung-gu, Seoul on the 6th. Minister of Trade, Industry and Energy Sung Yun-mo (6th from the left) and other officials are taking a commemorative photo after signing the’Business Agreement on Mutual Cooperation for Establishing an Energy Alliance’. From left, Yong-Seok Yoo, CEO of Hyundai Economic Research Institute, Sang-woo Kim, CEO of DL Energy, Yeon-in Jeong, CEO of Doosan Heavy Industries & Construction, Ki-seop Jeong, CEO of POSCO Energy, Jeong-jun Yoo, CEO of SK?E&S? , Ja-Yong Koo?E1?CEO, In-seop Jung, CEO of Hanwha Energy, Dongwook Kim, Vice President of Hyundai Motor Company, Wonpyo Song, Vice President of Hyosung Heavy Industries. Photo = Reporter Kim Sang-sun
Ministry of Industry, “New growth engine through fostering new industries”
The government was against the civilian-led carbon neutral alliance. Minister of Trade, Industry and Energy Sung Yun-mo said in a congratulatory speech at the inauguration ceremony that day, “Carbon neutrality has become an irreversible new normal.” “With the launch of the Energy Alliance, we responded to the challenging task of carbon neutrality through solidarity and cooperation between companies and fostered new industries. I hope to create a new growth engine.” “We are preparing a carbon-neutral scenario at the government level,” said Minister Seong. “Let’s make a new opportunity by proactively preparing and proactively responding to the challenge of carbon neutrality”.
The energy alliance, in which most of the domestic energy companies participated, was formed because carbon neutrality has become a global trend that cannot be countered. The U.S. Biden government, which was launched earlier this year, is promoting the introduction of a carbon tax with the goal of 2025. The European Union (EU) has ordered financial companies to disclose ESGs from March this year. In addition, it is pushing for the introduction of a carbon border tax by 2023.
The new term for carbon deinvestment also appears in the US
In the United States, there is also a phenomenon of diversification in carbon-emitted manufacturing companies. De-investment involves aggressive movements such as banning investment as well as recovering existing investments for companies that are passive in reducing carbon emissions. “Climate change will act as a threat to the fundamentals of the modern financial system,” said Larry Finck, CEO of Black Rock, the world’s largest asset manager, in a letter to key investors in January.
The prediction of energy-related think tanks is similar. The IEA declared this year the first year of net zero (zero greenhouse gas emissions). IEA Secretary General Patti Virol said at a New Year’s press conference earlier this year, “Last year, greenhouse gas emissions decreased by 7% from the previous year, returning to the level of 10 years ago.” It is a crisis and an opportunity for governments and companies in each country to challenge (zero GHG emissions).”
The launch ceremony of the Energy Alliance for the realization of a carbon neutral initiative in 2050 was held at Lotte Hotel in Jung-gu, Seoul on the 6th. Minister of Trade, Industry and Energy Sung Yun-mo attended the inauguration ceremony and gave a congratulatory speech. Reporter Kim Sang-sun
Reporter Kiheon Kang [email protected]
