The National Climate Crisis Response Committee has sought policy and financial support to facilitate the low-carbon transition of the steel industry. The committee discussed ways to back investments necessary for technological development and equipment upgrades in the steel sector, aiming to reduce greenhouse gas emissions while maintaining industrial competitiveness.
On October 28, the committee held the 'Second Forum on Low-Carbon Transition Policies for the Industrial Sector' at the Peace and Park Convention Center in Seoul, attended by over 100 participants from the government, steel industry, academia, and financial sectors.
The steel industry accounted for approximately 39% of greenhouse gas emissions from domestic industrial sectors as of 2018, making it the largest emitter. The forum addressed the direction of the steel industry's low-carbon transition and investment and financial linkage strategies for Korea's green transition initiative, known as 'K-GX.'
The Ministry of Trade, Industry and Energy presented the policy direction for the steel industry's low-carbon transition, while the Financial Services Commission outlined the current status and direction of transition financing. The Ministry of Climate, Energy and Environment explained support measures for green and transition investments. Academia and the Korea Chamber of Commerce and Industry also proposed strategies for securing competitiveness in the domestic steel industry and outlined investment plans and challenges for green transition.
Steel industry representatives described the challenges of technological development and equipment upgrades, requesting support. POSCO Holdings highlighted the investment burdens associated with the demonstration and commercialization of low-carbon technologies, such as hydrogen reduction steelmaking, and urged the government to lead the creation of a low-carbon steel market, expand clean power and hydrogen supply bases, and establish long-term investment and financing conditions.
The Korea Iron and Steel Association proposed tax incentives for low-carbon transition investments, relief from electricity cost burdens, securing high-quality scrap steel, and recognition of the reduction performance of low-carbon steel products as common industry tasks.
This forum is part of the activities of the 'Carbon Neutral Grand Alliance,' launched in December 2024, aimed at fostering cooperation among high-emission industries, financial sectors, and relevant government departments. The Climate Response Committee plans to incorporate feedback gathered during the forum into discussions by the 'Green Transition Committee for High-Emission Industries' and share it with relevant departments to review policy linkages and complementary measures.
Lee Chang-hoon, the private sector chair of the Climate Response Committee, stated, "The low-carbon transition of industries is a task that requires collaboration between the public and private sectors to reduce greenhouse gas emissions and secure industrial competitiveness. Government policy support, along with climate finance, must effectively connect with corporate investment needs to lead to tangible reductions."
* This article has been translated by AI.
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