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(News Focus) S. Korean firms aim to go green
By Kim Young-gyo
SEOUL, Nov. 17 (Yonhap) -- Leading South Korean firms are strengthening their commitment to global climate change relief, in line with the country's decision to cut its carbon emissions drastically.
Earlier Tuesday, the presidential office announced that South Korea will reduce its greenhouse gas emissions to 4 percent below its 2005 levels by 2020, though it is not required to do so under the existing U.N. convention on climate change.
South Korea had been reluctant to make any commitments to the reduction of the carbon emissions as its economy heavily depends on exports from manufacturers.
Experts and activists have been urging the local companies to join the ongoing global commitment to so-called "green growth".
"The manufacturing industry must build its future on producing greener products and services," said Noh Hee-jin, a senior research fellow at the Korea Capital Market Institute.
Market bellwether Samsung Electronics Co. is among those on a fast-track towards eco-friendly development. The company said in July it will halve its greenhouse gas emissions during the 2008-2013 period, and is investing 5.4 trillion won (US$4.3 billion) into developing eco-friendly products and energy-saving technologies.
The electronics giant ranked 10th among 500 global corporations in terms of reporting of greenhouse gas emissions and climate change strategy data on this year's Carbon Disclosure Project Financial Times Stock Exchange 500 Report, released in October.
Local rival LG Electronics has also decided to join the efforts by cutting the greenhouse gas emissions by 30 million tons a year by 2020. It also aims to cut the electric power consumption of its key products by 15 percent by 2012 compared to 2007 levels.
Automakers are speeding up research and development of green cars in an effort to secure a spot in the rapidly growing market. After releasing their first hybrid electric vehicles this year, Hyundai Motor Co. and Kia Motors Corp. have recently launched projects to develop fully electric cars with zero emissions.
They also aim to produce in 2012 plug-in hybrid electric vehicles (PHEV), which have characteristics of both hybrid electric and fully battery-powered vehicles.
Shipbuilders are seeking to diversify its business portfolio by launching wind power and other alternative energy-related businesses.
Hyundai Heavy Industries Co., which is already involved in a solar energy business project, expects its sales of solar cells and solar modules will reach 1 trillion won in 2010 on rising demand for alternative energy.
Hyundai Heavy plans to spend 300 billion won (US$255 million) to build a second factory for solar cells by 2010.
Samsung Heavy Industries Co., the world's second-largest shipyard, has followed suit. It announced plans to develop offshore wind power-generating facilities with a capacity of up to 5 megawatts.
No. 1 steelmaker POSCO has also started developing technology to harness alternative and renewable sources of energy.
Other companies are eying carbon emissions trading as a new source of revenue.
Hanwha Corp., known for manufacturing gunpowder and explosives, is seeking measures to sell carbon emissions rights. The company reduced 280,000 tons of greenhouse gas this year.
LG Chem Ltd., South Korea's largest chemical maker, also secured carbon emissions rights of 200,000 tons of carbon dioxide for 10 years after reporting to the U.N.'s clean development mechanism, or CDM, which was incorporated into the 1997 Kyoto Protocol on climate change.
CDM is a system that calls on governments of developed countries and corporations obliged to cut greenhouse gas emissions to invest money in projects to reduce gas emissions in developing countries and get credit for cutbacks.
Earlier this year, the South Korean government submitted a bill related to carbon emissions reduction to the parliament. It is currently being reviewed with the Environment and Labor Committee on the National Assembly.
The bill, if passed, is expected to spur more members in the South Korean business community to participate in the move to reduce carbon-emissions, Noh said.
"Some countries are seeking to impose carbon taxes on imports," Noh said, referring to France, where President Sarkozy in September called on the European Union to impose such taxes on imports from countries that do not agree to reduce greenhouse gas emissions.
"The trend is irreversible," Noh added.
ygkim@yna.co.kr
(END)
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