Trend Climate change turns into a core economic variable as carbon regulation tightens

Summary

KISTEP argues that climate change is no longer confined to environmental policy and now bears directly on the structure and growth outlook of the world economy. More frequent extreme weather, not only rising average temperatures, is inflicting heavy losses on industrial activity and on economies as a whole in major countries. Korea itself has already experienced abnormal weather, including heavy snowfall. As economies build decarbonised economic systems to reach carbon neutrality, global rules such as life-cycle carbon footprint requirements for products are tightening. The report concludes that the Korean industries exposed to this regulatory wave need to prepare countermeasures in advance.