Research Report
A Study on Legislation for the Realization of Carbon Neutrality in Industrial Parks: Focused on the cases of low-carbon industrial parks in China
Ⅰ. Backgrounds and Purposes
▶The industrial sector accounts for about 30% of the total global carbon dioxide emissions, and whether or not the industrial sector will reduce carbon dioxide emissions is very important in realizing carbon neutrality. As of 2018, the industrial sector accounts for 260.5 million tons (35.8%) out of the total carbon emissions of 727.6 million tons, the second largest emission after the conversion sector (269.6 million tons, 37%) in Korea, which is the same situation.
▶Of these, greenhouse gas emissions in industrial complexes account for 33.2% of the nation's total emissions (as of 2017), so most of the carbon emissions in the industrial sector are found to be emitted from industrial complexes, and accordingly, reduction in the industrial sector, especially industrial complexes, is essential to achieve Korea's 2050 carbon neutral target.
▶The representative policy that the Korean government is promoting to achieve the goal of reducing carbon emissions in the industrial sector is the "Smart Green Industrial Complex" system introduced to achieve digitalization, energy independence, and eco-friendliness through smartization and greening in industrial complexes.
▶Therefore, this study attempted to present measures to improve related policies and legal systems by analyzing the legal system for promoting smart green industrial complexes for reducing greenhouse gas emissions in the industrial sector in Korea and the performance and limitations of its implementation, and to this end, in particular, by in-depth analyzing the policies and legal systems for reducing carbon emissions in industrial complexes in China, we would like to refer to the preparation of related policies and legal system improvement plans in Korea.
Ⅱ. Major Content
▶The number of industrial complexes and greenhouse gas emissions in Korea
○As of the end of December 2022, the total number of industrial complexes in Korea is 1,274, of which 47 national industrial complexes, 710 general industrial complexes, 41 urban high-tech industrial complexes, and 476 agricultural and industrial complexes. As of the end of 2021, the total amount of greenhouse gas emissions in all industrial complexes in Korea is about 268.39 million tons, and the industrial complexes account for about 78% of greenhouse gas emissions in the industrial sector and manufacturing industry.
○As of the end of 2021, the total greenhouse gas emissions of all industrial complexes in Korea were about 268.39 million tons, and industrial complexes accounted for about 78% of the greenhouse gas emissions of the industrial sector and manufacturing industries.
▶Main contents of the Smart Green Industrial Complex System
○The Smart Green Industrial Complex System was introduced in accordance with the Industrial Cluster Development and Factory Establishment Act (abbreviated as the Industrial Cluster Development and Factory Establishment Act) by adding "green" to the existing smart industrial complex as the Ministry of Trade, Industry and Energy promoted the smartization of industrial complexes that began in December 2018, that is, the Korean version of the New Deal in July 2020 in the smart industrial complex.
○Such a smart green industrial complex system was also introduced and implemented in December 2020 under the Industrial Location and Development Act (abbreviated as the Industrial Location Act) under the jurisdiction of the Ministry of Land, Infrastructure and Transport.
○Under the Industrial Location Act, the Smart Green Industrial Complex System is operated by the Minister of Land, Infrastructure and Transport designating it as a Smart Green Industrial Complex in the process of designating and developing industrial locations and developing it as a Smart Green Industrial Complex from the beginning, and as a detailed guideline for this, guidelines for "Designation and Development of Smart Green Industrial Complexes" are established.
○Under the Industrial Cluster Act, the Smart Green Industrial Complex System operates by designating the existing industrial complex as the Smart Green Industrial Complex by the Minister of Industry and Energy.
▶Major Problems of the Current Smart Green Industrial Complex System
○Legal system aspect
- First, the Smart Green Industrial Complex System under the same name is operated independently by the two laws, the Industrial Location Act and the Industrial Cluster Act, and the Ministry of Land, Infrastructure and Transport and the Ministry of Industry, which are the main departments of these laws, respectively, which may cause confusion and inefficiency problems.
- Second, there are few detailed regulations for the designation of smart green industrial complexes, so there are limitations in the operation of the system because the completed legal system has not yet been established.
○Legal and policy content aspects
- The current smart green industrial complex system is not a system specialized in reducing greenhouse gas emissions, but is included as part of a more comprehensive goal of smartization and greening of industrial complexes, so there are many limitations in carrying out effective greenhouse gas emission reduction projects.
- In order to substantially reduce greenhouse gas emissions through the Smart Green Industrial Complex System, there are no laws such as specific standards for the greenhouse gas reduction goal and the ratio of renewable energy use that must be presented by the project-applied industrial complex when selecting a smart green industrial complex, and specific methods for calculating greenhouse gas emissions and reductions.
▶Analysis of policies and legislation for carbon neutrality in industrial complexes in China
○According to the announcement of the International Energy Agency (IEA), global energy-related carbon dioxide emissions reached a record high of 36.8 billion tons (36.8GtCO2e.) in 2022.
○Among them, China accounts for 12.1 billion tons of emissions (26% of the world's total carbon emissions), far ahead of the second-largest U.S., 4.7 billion tons.
○Accordingly, in September 2020, the Chinese government announced the so-called '30·60 Two Carbon' strategy to reduce greenhouse gas emissions and realize carbon neutrality, and is actively promoting various policies and projects in each sector.
○As greenhouse gas emissions in the industrial sector account for 28% (industry), the second-largest among all emissions after electricity (47%), emission reduction in the industrial sector is more important than anything else to achieve China's '30·60 Two Carbon' goal.
○In particular, the energy consumption of industrial districts in China is 69% of the total social energy consumption, and carbon emissions account for about 31% of the total national emissions (about 28.2 billion tons as of 2015), so it is very important to reduce carbon emissions of industrial districts.
○In response, the Chinese government has been pushing ahead with pilot projects for low-carbon industrial zones, pilot projects for Near Zero carbon industrial zones, and pilot projects for Zero carbon industrial zones in order to reduce greenhouse gases in industrial complexes since more than a decade ago.
○In order to promote these industrial park pilot projects, the central and local governments are enacting and implementing various policies and legislation, and some leading industrial park pilot projects are producing results in reducing greenhouse gas emissions.
▶Recommendations to the Improvement of Legislation for Carbon Neutrality in Industrial Complexes in Korea
○First, it is necessary to unify the legal basis of the smart green industrial complex system, which is currently operated independently according to the Industrial Location Act and the Industrial Cluster Act. Although it is a smart green industrial complex in a situation where the current legal system governing industrial complex policies is dualized, it may be difficult to regulate it in an integrated manner under one law. Therefore, as a short-term solution, the legal basis is stipulated in the two laws as in the current law, but detailed operation standards, etc., are enacted in the form of a joint decree, and it is necessary to operate the system in an integrated and cooperative manner.
○Second, for the effective operation of the smart green industrial complex system, it is necessary to quickly establish detailed operating standards that are vacant in legislation. In particular, even though the Industrial Cluster Act delegates the establishment of guidelines for fostering smart green industrial complexes to subordinate laws, the fact that the guidelines are not established is expected to be a major obstacle to the operation of the system.
○Third, it is necessary to introduce an industrial complex system for each type specialized in carbon reduction. As shown in the case of China, it is necessary to introduce an industrial complex system with various carbon emission reduction targets in consideration of the carbon reduction potential of industrial complexes so that more industrial complexes can participate in the carbon reduction pilot project by expanding the scope of the pilot project selection.
○Fourth, it is necessary to comprehensively define the terminology definition of the smart green industrial complex system, which is almost overlapping with the current two laws, in one law, and to add the expression carbon neutrality to the existing definitions so that the greenhouse gas reduction project for industrial complexes through the smart green industrial complex system can be more effectively promoted.
○Lastly, it is necessary to change the idea so that local governments and individual industrial complexes can have some authority to enact policies and detailed regulations for realizing carbon neutrality in industrial complexes so that they can pursue greenhouse gas reduction policies and projects in a more creative manner that suits the characteristics of each region. This is expected to promote competition and cooperation between local governments and industrial complexes.
Ⅲ. Expected Effects
▶In Korea, where the introduction and implementation of policies and legislation for the realization of carbon neutrality in industrial complexes is still at a rudimentary level, data and implications on policies, legislation, and application cases for the realization of carbon neutrality in various industrial complexes in China, which are implemented earlier than Korea, are expected to be a reference for the improvement of policies and systems of related organizations such as the Korean government in the future.
▶Research on policy, legislation, and case analysis on greenhouse gas reduction in industrial complexes is very insufficient, and the contents of this study are expected to be used as basic data for related research in the future.