Petrochemical firms join carbon neutral drive

South Korean petrochemical companies said Tuesday they will join the country's green energy drive, which centers on achieving carbon neutrality by 2050.

The country launched a new committee on achieving carbon neutrality under ties with the private sector, according to the Ministry of Trade, Industry and Energy.

The Moon Jae-in government has vowed to achieve carbon neutrality by that year, which means effectively reducing carbon emissions to zero.

It is also pushing a Green New Deal aimed at fostering low-carbon, environmentally friendly industries.

Local firms have been announcing their own plans to join the government-led energy drive, with Lotte Chemical Corp. earlier announcing that it plans to invest 5 trillion won ($4.46 billion) in eco-friendly businesses, seeking to go carbon neutral by 2030.

SK Global Chemical Co. said it plans to have eco-friendly products take up more than 70 percent of its portfolio by 2025.

LG Chem Ltd. said it will seek to utilize only sustainable energy for all of its production facilities.

The petrochemical industry creates some 71 million tons of greenhouse gases annually, below the level of the steel sector that generates 117 million tons.

Petrochemical products, meanwhile, are among the major export goods of Asia's No. 4 economy, although the performance recently slowed due to the falling global price of oil coupled with the COVID-19 pandemic.

Outbound shipments of petrochemical products came to $35.5 billion in 2020, down 16.4 percent on-year, separate data from the ministry showed. (Yonhap)