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A study on changes of greenhouse gas emission in the industry sector and its implications

Author Lee Jaeyoon Date 2017.04.17 Issue No 14
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As a New Climate Regime is introduced, Korea has been facing a challenge of a GHG (greenhouse gas) reduction goal. Therefore, concerns are raised as the industrial competitiveness may decrease.

 

Recently, the ratio of GHG emission in the industrial sector (i.e. mining and manufacturing industry) has dramatically risen.

*GHG emission across the nation has annually increased by 1.3% between 2010 and 2014, while that of the industrial sector has annually increased by 6.5% during the same period.

 

Higher production, aggravated energy efficiency, and the inefficient use of energy sources contribute to the increment of GHG emission in the industrial sector between 2010 and 2014.

*GHG emission has increased due to the increment of production but also due to the weaker energy efficiency.

*Industrial structures are changing to be low-energy-consumption structures. However, GHG emission reduction through the improvement of energy mix is not as efficient as it should be.

 

It is necessary to step up the efforts to enhance energy efficiency of the steel and petrochemical industry. It is also necessary to encourage the consumption of energy efficient sources in overall industries.

*The increment of GHG emission during the analysis period is due to the increment of GHG emission in materials industry, for example the steel and petrochemical industry, and the aggravation of energy efficiency.

* In short-term, it is important to improve the efficiency of energy that is focused on materials industries. Also, it is necessary to set up for the middle-term R&D strategy, to encourage consumption of eco-friendly energy sources and to innovate the eco-friendly production process in the overall industry.

 

In order to minimize the possibility of policy errors, the use of more segmented industrial classification is necessary in the process of preparation for GHG reduction policy.