Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy (MOTIE) launched the Industrial Supply Chain Carbon Neutrality Alliance on July 25 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with the participation of 11 major industry sectors’ associations and announced the “Industrial Supply Chain Carbon Neutrality Strategy.” 

Amid increased demand from the EU and other regions on calculation and mitigation of product-specific carbon emissions generated across the supply chain, concerns are being raised that lack of timely response will deteriorate competitiveness and incur export setbacks. Accordingly, MOTIE established the Industrial Supply Chain Carbon Neutrality Strategy as below to promote public-private efforts through the Industrial Supply Chain Carbon Neutrality Alliance.

First, MOTIE will establish a “Korean Industrial Supply Chain Carbon Data Platform” for carbon data exchanges among businesses participating in the supply chain. Unlike the cloud’s data storage mechanism, this platform will adopt the data space method and serve as only a data passageway, while ensuring private businesses’ data sovereignty to heighten companies’ voluntary participation and utilization. The platform will initially be established around five industries with relatively greater need for carbon regulatory response (batteries, automobiles, home appliances, steel/aluminum, and textiles), which will later extend to cover all industries and industrial data.

Second, the calculation and mitigation of carbon emissions will be realigned to provide integrated support to companies linking the export supply chain, instead of the previous method of distributing siloed support to individual companies. Efforts will go toward supporting collaboration with industrial complexes and local authorities, expanding the scope of mutual international recognition of carbon footprint verification outcomes, and streamlining projects based on cross-ministerial joint budget systems.

Third, the ministry will use the FTA and Trade Support Center as a one-stop service for assisting companies with consulting and information provision. For the abovementioned five critical industries, MOTIE will launch a “Carbon Trade Regulatory Response Committee” for more effective regulatory response and information sharing.

In implementing these initiatives, the Government, economic groups, related institutions, associations, and companies aim to leverage the Industrial Supply Chain Carbon Neutrality Alliance and its working groups to maintain close communication and consolidate domestic efforts.