1. Current Status of Carbon-Neutral Communities in Korea
The Framework Act on Carbon Neutrality and Green Growth for Coping With Climate Crisis proposes a process for “spreading participatory carbon-neutral communities nationwide,” but changes in ...
1. Current Status of Carbon-Neutral Communities in Korea
The Framework Act on Carbon Neutrality and Green Growth for Coping With Climate Crisis proposes a process for “spreading participatory carbon-neutral communities nationwide,” but changes in support policies and budgets are raising difficulties for continued operation. Due to the reduction of convergence support projects by the Ministry of Trade, Industry, and Energy, energy-independent communities in various local governments, including Busan, are also shrinking in size. The Ministry of Environment also sought to reduce greenhouse gas emissions by encouraging community organization and living practices through the Carbon Neutral-Living Practice Leading community, but the budget for 2024 was entirely cut due to insufficient carbon reduction results. Accordingly, interviews with key stakeholders (government, businesses, and local activists) revealed a lack of consistency in the legal framework (regulations, budget support, and incentives) due to weak linkages within the legal system (see Table 1).
2. Comparison of Operational System and Processes between Carbon-Neutral Communities in Korea and Abroad
We selected Germany as a European country that is leading the way in operating carbon-neutral communities and Japan as an Asian country, to compare the processes of operating carbon-neutral landfills in Korea. In overseas guidelines for carbon- neutral communities, companies are involved from the planning stage, become key actors in renewable energy and emission reduction in the implementation stage, and organize monitoring results. In contrast, in Korea, companies are not involved in the planning, implementation, and monitoring stages (see Table 2). In Germany, companies are involved in the planning, implementation, and monitoring phases, with the government playing a role in developing plans with residents, raising and investing funds through initiatives, and monitoring and auditing companies’ performance. In Japan, banks were involved in raising funds, and intermediary support organizations invested the funds in companies, provided consulting, and managed performance. In Korea, although the law allows for company participation, the focus has been on participatory energy conservation, with residents applying to the government’s competition to generate and reduce energy.
A comparison of Korean, German, and Japanese carbon-neutral community legislation shows that the participation (obligations and benefits) of businesses is weak in Korean ordinances (see Table 3). In Germany, the Berlin Climate Protection and Energy Transition Act designates companies, institutions, foundations, religious communities, corporations, and associations as public authorities and assigns them roles. The Japanese central government’s Global Warming Law provides special exemptions for companies participating in local projects, and the Kyoto City Climate Warming Ordinance at the local level specifies the functions and roles of various companies (financial institutions, energy companies, building owners, automobile manufacturers, IT companies, etc.). In comparison, Korea’s local ordinance for carbon-neutral communities limits business participation to the promotion committee, and the types and forms of participating companies remain unclear.
3. Policy Recommendations for Carbon-Neutral Community
This study proposes strengthening corporate investment, providing detailed information to local businesses, fostering specialized institutions and human resources for energy welfare and conflict management, and preparing guidelines (processes) for each type (see Figure 1). Additionally, we propose a participation structure outlining the roles and benefits of companies to establish stable financial resources for carbon-neutral communities. The government has proposed establishing a foundation for corporate investment (accountability, funding, and related deregulation), and developing an information system for local businesses to participate. Citizens would be able to participate in decision-making, investment, and the supervision of related projects. Businesses would be required to contribute to environmental and economic analysis by providing assessment information and registering relevant data in the information system. A participation system is proposed for each business type (IT, banking, building owners), with a process specific to each type. For single-family houses, guidelines for forming an intermediate support organization using local residents' associations for related projects and activities are necessary, while for apartments, guidelines for utilizing existing residents' organizations should be developed.
4. Proposal for Standard Ordinance on Carbon-Neutral Communities
It is necessary to improve the wording of the Basic Act on Carbon Neutral and Green Growth in Korea, regarding informatization for corporate investment and performance verification for each local project. Additionally, local ordinances on carbon neutrality and green growth, as well as ordinances for creating carbon-neutral communities, should include special exemptions (incentives and deregulation) and obligations (information provision, education, and contributions to local revitalization) for corporate investment in related projects. Therefore, this study proposes an improved carbon neutrality ordinance based on the Yeosu City Carbon Neutrality Basic Ordinance and the Carbon-Neutral Community Creation Ordinance, the first of its kind in Korea. This ordinance would complement the corporate participation elements of the Basic Act on Carbon Neutrality and Green Growth, and would include provisions on corporate participation, informatization, support for vulnerable groups, conflict management, and processes (see Table 4 & 5). The improved carbon-neutral community ordinance will enhance corporate investment and participation, providing a foundation for stable operation without relying on government support, and the information system will allow the community to access all the quantified information, which will aid in performance management and future planning. Corporate participation will also create opportunities to secure environmental and economic benefits through preliminary reviews of carbon neutrality projects. To this end, the city will provide special cases to participating companies to contribute to local revitalization. By initially applying carbon-neutral communities to vulnerable areas and regions, it will help realize energy welfare in those areas, and it will be possible to add conflict management responsibilities to the support center and carry out specialized management for each type of housing.