Korea Holds Industry Roundtable to Outline 2035 NDC Targets and Carbon Neutrality Support Measures

The Ministry of Trade, Industry, and Resources (MOTIR) and the Ministry of Climate, Energy and Environment (MCEE) convened an industry roundtable on Tuesday, November 25, to discuss South Korea’s finalized 2035 Nationally Determined Contribution (NDC) and the government’s upcoming support framework for industrial carbon neutrality.

Approved by the Cabinet on November 11, the updated 2035 NDC commits the country to reducing net greenhouse gas emissions by 53–61% below 2018 levels, with the industrial sector tasked with achieving a 24.3–31.0% reduction. Responding to industry concerns regarding compliance pressures, government officials clarified that the Emissions Trading System (ETS) will operate based on the lower end of the reduction range—53% for overall emissions and 24.3% for industry—to help ease the burden on companies. Additional regulatory relief options—such as eligible offsets and supplementary allowance allocations—were also highlighted.

Key Government Initiatives for 2026

During the session, MOTIR outlined a series of major initiatives set for rollout in 2026, including:

-Launching a large-scale “Industry GX Plus” R&D program worth more than KRW 5 trillion to accelerate the development of industrial carbon-neutral technologies.

-Expanding incentive-based facility upgrades through competitive auctions and voluntary industry agreements.

-Enhancing practical support mechanisms such as carbon partnership programs between large corporations and SMEs.

MCEE detailed its parallel plans beginning in 2026, which include:

-Strengthening government support for major emitters undertaking large-scale mitigation projects.

-Reviewing the introduction of Carbon Contracts for Difference (CCfD)—a tool already in use in Europe—after 2027.

-Mobilizing additional private capital for carbon-neutral investments by offering interest rate incentives for projects delivering significant emission reductions.

Government Positions

Park Dong-il, Director General for Industrial Policy at MOTIR, stated that the 2035 NDC marks a “pivotal opportunity” for Korean industries to shift toward low-carbon, high value-added green transformation, adding that the government will provide robust support to realize this transition.

Ahn Se-chang, Director General for Climate and Energy Policy at MCEE, noted that the 2035 NDC serves not only as a reduction target but also as a roadmap for future economic growth, underscoring the government’s commitment to full-scale support for implementation across sectors.

The government plans to continue collecting feedback through sector-specific relay roundtables and aims to finalize a comprehensive, cross-ministry “K-GX Strategy” in the first half of 2026.