Ten large domestic companies such as SK, POSCO, Hanwha, GS, and economic research institutes have formed the’Energy Alliance’ with the aim of being’carbon neutral’. SK E&S Vice Chairman Yoo Jeong-jun was appointed as the first chairman at the inauguration ceremony held at Lotte Hotel in Sogong-dong, Jung-gu, Seoul on the 6th. Vice-Chairman Yoo said, “It took nearly 30 years to create a coal-free society after the coal rationalization policy in 1988. To achieve the carbon neutral goal within 10 to 20 years, the side effects will be difficult.” The following are questions and answers with Vice Chairman Yoo.
Q: What made the Energy Alliance?
A: “These days, if I don’t talk about carbon neutrality or ESG (eco-friendly, social responsibility, corporate governance improvement), I hear a villager. In the corporate field, I experienced a sense of crisis from 3-4 years ago. Until now, carbon neutrality has sounded like a distant story, but it is now a reality. If it does not evolve, there is a sense of crisis that will become the subject of transformation.”
Q: Isn’t it an area where the government should be ahead of the private sector?
A: “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. The goal is to propose an effective decarbonization policy to the government and cooperate at the same time.”
Q: What is the global trend regarding carbon neutrality?
A: “The Japanese government and companies have begun experimenting with a project to produce and bring hydrogen in Australia. Last week, the U.S. Senate and House of Representatives joined forces to help tax the hydrogen industry. When the price of carbon credits reaches 100 dollars per ton, economic feasibility that did not exist (such as the hydrogen industry) is created. The industrial structure is changing in earnest. 87% of the carbon emitted domestically comes from the energy industry. The energy industry must be led to discuss a carbon-neutral strategy.”
Q: What are your plans for the future?
A: “We plan to accurately identify carbon neutral trends through global networks such as the International Energy Agency (IEA). Next, it plans to create and present a Korean-style carbon neutral scenario. By the end of this year, we must resubmit our greenhouse gas reduction targets to the United Nations.”
At the inauguration ceremony, E1 Chairman Koo Ja-Yong, SK E&S Vice Chairman Yoo Jeong-jun, SK E&S Vice Chairman Sang-Woo Kim, DL Energy Vice Chairman Kim Sang-woo, POSCO Energy President Ki-seop Jung, Hanwha Energy President Jeong In-seop, GS Energy President Yeon-in Jeong, Doosan Heavy Industries & Construction President, Dong-wook Kim Hyundai Motor Vice President, Hyosung Heavy Industries Vice President Song Won-pyo, and Hyosung Heavy Industries vice president. The president of the Hyundai Economic Research Institute and others attended.
Minister of Trade, Industry and Energy Seong Yun-mo said in a congratulatory remark on the day, “Carbon neutrality has become an irreversible’new normal’ (a new standard). I hope to create a growth engine.”
The Joe Biden administration of the United States is promoting the introduction of a carbon tax with the goal of 2025. The European Union (EU) has mandated ESG disclosures for financial institutions since last month. The EU is pushing for the introduction of a carbon border tax by 2023.
The IEA declared this year the first year of’Net Zero’ (zero greenhouse gas emissions). At a press conference at the beginning of this year, IEA Secretary General Patti Virol said, “Last year, greenhouse gas emissions decreased by 7% from the previous year, returning to the level of 10 years ago.” He explained, “This year is a crisis and an opportunity for governments and companies in each country to challenge Net Zero.
Reporter Kiheon Kang [email protected]