Environment Minister Hanjeong-ae is speaking at the’Environmental Minister-Industry CEO Environmental Policy Conference’ held at the Grand Intercontinental Hotel in Gangnam-gu, Seoul on the 26th. Newsis
The government announced that it is considering tax credits for large companies that invest in greenhouse gas reduction technologies. Currently, the tax credit rate is differentiated by company size.
The Ministry of Environment made this announcement at the’carbon-neutral meeting with representatives of industrial companies’ held at the Grand Intercontinental Hotel in Gangnam-gu, Seoul on the 26th. Representatives of major companies participating in the greenhouse gas emission trading system, including Minister of Environment Han Han-ae, Samsung Electronics President Choi Si-young, POSCO Steel Division President Kim Hak-dong, Kim Gyo-hyun, CEO of Lotte Chemical, and Gong Young-woon, president of Hyundai Motors attended the event.
Companies here suggested that practical support, such as expanding tax credits, is needed for the preemptive introduction of GHG reduction technology. Currently, the government’s tax credit rate for new growth technology commercialization facilities is 3% for large companies, 5% for mid-sized companies, and 12% for small and medium-sized companies, which vary greatly depending on the size of the company. The point is that large companies also ask for a higher tax credit rate.
POSCO also said, “In order to achieve carbon neutrality in 2050, the introduction of hydrogen reduction steel is the key,” and asked for the establishment of infrastructure for a stable supply of green hydrogen and renewable energy. Korean Air said, “Bio jet fuel is the most effective way to reduce greenhouse gas emissions,” he said. “We need a support system to activate the production and supply of bio jet fuel.”
Minister Han replied, “We will review with related ministries after going through a pan-governmental discussion on expanding tax credits for large companies, easing the level of contributions for technology development, and revitalizing bio jet fuel. “As the environment and industry are linked, such as carbon border tax and environment-social-government (ESG) management, etc., if the response to climate change is delayed, the situation will inevitably be eliminated,” he said. “We will promote technology development projects related to circular economy.” said.
Song Okjin reporter [email protected]
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