TI Fellow Lu Peili Shares on Carbon Neutrality at Jeju Forum 2023

 

On June 2, 2023, TI Fellow Lu Peili delivered a speech at the session “Carbon Neutrality and Korea’s Strategy: Compliance with International Norms and Corporate Response” of the Jeju Forum 2023. Below are the key points she made during the session:

Carbon neutrality brought about a new paradigm shift in global economic development. First, carbon neutrality and technological progress are closely intertwined. The fast technological progress of the current era has led to an explosion of AI and Internet products, which come at the cost of increased energy consumption. However, to achieve low-carbon and cost-effective energy production, we must lean into the power of the Internet and AI for automated processing to control carbon emissions. Carbon neutrality is greatly facilitated by technological progress; they are not mutually exclusive.

Second, carbon neutrality triggers an energy revolution. A case in point is Iceland’s investment in electrolytic aluminum. This investment is primarily motivated by the nation’s abundant geothermal and hydropower resources, which can provide green and cost-effective electricity for the development of the electrolytic aluminum industry.

Lastly, carbon neutrality can catalyze systemic changes in our society. The impactful idea of carbon neutrality is prompting a profound shift in the values and behaviors of an expanding segment of society. The rise of eco-friendly concepts, such as low-carbon transportation and green, healthy, and organic agricultural products, is poised to influence corporate decision-making processes and the standards by which consumers assess the worth of everyday commodities.

 

 

Mitigating climate change and reducing the occurrence of extreme weather events represent a shared global vision and a goal in our pursuit of “a community with a shared future for mankind.” To realize this vision and goal, nations worldwide must focus more intently on adjusting their industrial structures, jointly constructing global industrial chains, facilitating global capital flows and investments, and nurturing the development of multilateral carbon markets.

To realize the success of the industrial restructuring efforts, nations could implement carbon footprint management methodologies to quantify carbon emissions at each juncture of a product or service life cycle—from procurement, manufacturing, and transportation to utilization and end-of-life disposal. This helps pinpoint the critical carbon emission sources, devise strategic emission reduction plans, and foster a transition toward a low-carbon paradigm among supply chain partners.

Countries worldwide can collaborate to establish global industrial chains by leveraging the power of technological innovation and research. By intensifying their input to low-carbon technological innovation and research, they can discover and promote low-carbon solutions, thereby strengthening their industrial competitiveness. This constructive competition will encourage progress in vital sectors, such as renewable energy, energy storage, and energy efficiency enhancements.

With the mounting global demand for sustainable development, the growth of green finance and investment is also expected to accelerate. The Republic of Korea (ROK), for instance, can seize this opportunity to develop green finance, attract green investments, establish green financial systems, promote sustainable investment, and channel more funds into low-carbon and environmental protection initiatives. By doing so, they can stimulate the growth of related industries. Moreover, the ROK can consider establishing bilateral or multilateral carbon markets to enable the trading and management of carbon emission rights. This would effectively incentivize the ROK’s enterprises and drive the progress of a low-carbon economy.

Achieving carbon neutrality goals requires more than just national policies. It demands a concerted effort that extends across sectors, necessitating collaborations and partnerships that go beyond the confines of departments, industries, and regions to jointly drive the progress of green and low-carbon development. It is imperative for governments, businesses, academic institutions, and social organizations to actively cooperate and share experiences to foster resource sharing and drive technological innovation.