Recently, the carbon intensity (tCO₂e/t) of three major domestic paper companies, including Hansol Paper, Moorim Group, and KLEANNARA, has shown a continuous increase over the past three years. While total emissions have decreased, greenhouse gas emissions per unit of product have actually increased.

Amid President Lee Jae-myung's emphasis on the 'transition to a decarbonized society,' the paper industry plans to accelerate responses to reduce greenhouse gases, despite the complex crisis from domestic demand slowdown and tariff pressure from the United States.

Graphic=Jeong Seo-hee

President Lee Jae-myung declared carbon neutrality and climate crisis response as key national agendas. In his inaugural speech on 4th, he emphasized, "We will quickly transition to a renewable energy-centered society in line with the global trend of responding to the climate crisis" and stated, "We will promote comprehensive decarbonization, including industrial structure transformation."

In particular, the government is in discussions to hasten the carbon neutrality of the industrial sector by newly establishing a carbon-neutral industry law (K-IRA) benchmarked on the U.S. Inflation Reduction Act (IRA).

While the existing Basic Carbon Neutrality Law related to overall carbon policy, the Carbon Neutral Industry Law focuses on decarbonizing the industrial supply chain and fostering green industries. Additionally, it plans to expand renewable energy by integrating the energy functions of the Ministry of Trade, Industry and Energy and some functions of the Ministry of Environment, as well as to establish a control tower for carbon neutrality policy.

Under these circumstances, the domestic paper industry has shown an increasing trend in greenhouse gas emissions.

Looking at the carbon intensity (tCO₂e/t) compared to production volume, KLEANNARA showed an upward trend in carbon intensity from 0.75 in 2021 to 0.83 in 2022, and further to 0.86 in 2023.

Hansol Paper increased its carbon intensity from 0.58 in 2021 to 0.59 in 2022, reaching 0.63 in 2023. Moorim Group recorded 0.43 in both 2021 and 2022, with a slight increase to 0.44 in 2023.

However, compared to global carbon emissions, it has shown a 'better-than-expected' performance. According to the 'Carbon performance assessment of the paper industry' published by the Transition Pathway Initiative (TPI) at the London School of Economics (LSE) in 2021, the average carbon intensity of the global paper industry predicted by the International Energy Agency (IEA) is 0.677 in 2020 and 0.659 in 2025. This value is considered to be the expected carbon intensity that countries will emit when following their greenhouse gas reduction targets (NDC) set by the Paris Agreement, serving as a practical 'benchmark for carbon intensity' that the international community aims for.

The paper industry, emphasizing that President Lee Jae-myung has stressed the 'decarbonization' trend, is in a position to take the lead in reducing greenhouse gases.

However, as the paper industry is experiencing poor performance due to decreased demand caused by economic slowdown, it remains uncertain whether these plans can be promptly executed.

Hansol Paper recorded sales of 575.5 billion won in the first quarter of this year, an increase of 7.8% compared to the same period last year, but its operating profit decreased by 40% to 20.3 billion won. Moorim Paper also saw consolidated sales of 319 billion won, down 3.5%, and its operating profit plummeted by 80% to just 5.1 billion won. KLEANNARA's sales decreased by 1.5% to 130.7 billion won, resulting in an operating loss of 3.8 billion won.

In addition, there is the burden of tariff risks from President Trump. With President Trump announcing plans to impose reciprocal tariffs on some countries, including Korea, concerns are growing that export competitiveness could weaken. Since paper is not a high-value item and the price competition is fierce, imposing tariffs would diminish price competitiveness.