The Ministry of SMEs and Startups said it will recruit small and midsize businesses to join the "2026 carbon neutrality facility investment support (supply chain track)" program from the 13th to 4 p.m. on the 6th of next month.
The carbon neutrality facility investment support program helps small and midsize businesses that are not subject to mandatory carbon reduction regulations such as the emissions trading system introduce process-tailored carbon reduction facilities. It provides a package of consulting, market research, and facility construction, and supports up to 300 million won per company.
Eligible facilities include energy-saving equipment, greenhouse gas emissions monitoring devices, artificial intelligence (AI)-based process control systems, and renewable energy power generation facilities such as solar power.
This supply chain track is characterized by support centered on partner small and midsize businesses that are linked in the supply chain with prime contractors, such as large corporations and first-tier suppliers. Previously, applications for the general and advancement types closed through a notice on Feb. and the selection process is currently underway.
With the European Union (EU) carbon border adjustment mechanism set to take effect in earnest in 2026, and supply chain due diligence and mandatory ESG disclosures to be introduced in stages, the need for carbon responses across supply chains is growing.
Accordingly, when a prime contractor supports partner small and midsize businesses in introducing carbon reduction facilities, the government will also fund the project costs.
Starting this year, the system was revised so that only partner small and midsize businesses for which the prime contractor has committed to cover a self-funded portion equal to 40% to 50% of total project costs can apply. The prime contractor and partner company must apply jointly as a consortium, and the government will cover the remaining 50% of project costs up to 300 million won.
Eligible corporations are selected through a document review, on-site inspection, and presentation evaluation. After the project ends, follow-up management such as optimizing facility operations and calculating reduction effects will be carried out for five years.
Kim Dae-hee, director general for SME strategy planning at the Ministry of SMEs and Startups (MSS), said, "Supply chain-centered carbon regulations such as the upcoming EU supply chain due diligence directive and climate disclosures are expected to expand," and added, "We will support prime contractors and partner small and midsize businesses in strengthening their joint response capabilities."