South Korea will encourage corporate carbon reduction and boost global competitiveness by establishing a measurement, reporting and verification(MRV) system for carbon emissions.

At an emergency economic meeting on Friday, finance minister Choo Kyung-ho stressed the need for local firms to move in sync with a global shift toward carbon neutrality as environmental, social, and corporate governance(ESG) expands worldwide.

Based on a new MRV infrastructure, the minister announced plans to create a database to calculate carbon footprints and establish a standard for each product.

He also promised to minimize the burden imposed on businesses by boosting international cooperation to ensure that certified domestic inspections of carbon emissions are recognized overseas.

The government will also support small- to medium-sized enterprises(SME) by providing related training and financial support so they can develop their own verification systems.