Seoul, February 16 (QNA) - South Korea plans to create a fund worth 150 trillion won (US$116.9 million) to provide assistance for steel makers' transition to a low-emission production structure and to boost competitiveness, the industry ministry said Thursday.
According to the South Korean Ministry of Trade, Industry and Energy, they decided to set up an alliance for cooperation and policy coordination in the first quarter of this year and to launch the fund for decarbonization projects, which will be used when their current 150 billion-won fund for the industry's environmental, social and corporate governance runs out.
The government vowed to earmark 26.9 billion won between 2023 and 2025 for research and development of key technologies to achieve zero-emission goals, as the country seeks to replace 11 coal-fueled blast furnaces with 14 hydrogen-powered ones.
Coal-burning furnaces accounted for nearly 70 percent of the country's total steel production as of last year.
South Korea has been working to expedite the transition to a carbon-neutral production structure, particularly as the European Union decided to implement the Carbon Border Adjustment Mechanism (CBAM) that calls for levying an import charge on steel, cement, electricity, fertilizer, aluminum and other related items equivalent to their carbon emissions from production.
The EU's regulation scheme will fully take effect in 2026 after a transition period set to begin in October 2023. (QNA)