South Korea, as the world’s 13th-largest greenhouse gas (GHG) emitter, plays a critical role in global efforts to address climate change and promote clean energy solutions. The country contributed 1.35 percent of global GHG emissions, amounting to 654 million tons in 2022. The government faces significant domestic pressure to align its policies with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius. The steel industry, a key component of South Korea’s manufacturing sector, is responsible for 40 percent of industrial GHG emissions and 16.7 percent of total national emissions, necessitating urgent decarbonization measures.
Under its nationally determined contribution (NDC), South Korea has pledged to reduce total national GHG emissions by 40 percent by 2030 compared with 2018 levels; this commitment falls short of the Paris Agreement’s target. Climate Action Tracker estimates that South Korea must achieve a domestic emissions reduction of at least 59 percent by 2030 to meet this threshold. This gap underscores the need for more ambitious climate policies as South Korea prepares to update its NDC pledges by February.
A recent shift in South Korea’s political landscape offers an opportunity for change in climate policy. Leading up to the April 2024 elections, the Democratic Party (DP) campaigned on prioritizing climate action and accelerating renewable energy transition. The DP secured a decisive victory, expanding its majority within the National Assembly by gaining an additional 19 seats.
The DP has committed to phasing out coal-fired power plants by 2040 and increasing renewable energy production to 40 percent by 2035. Additionally, it plans to enact a Carbon Neutrality Industry Act modeled after the United States’ Inflation Reduction Act (IRA).
Following his party's electoral defeat, President Yoon Suk-yeol expressed willingness to engage in dialogue with DP opposition leader Lee Jae-myung on governance matters. This development presents an opportunity for the DP to advocate more aggressively for clean energy policies.
As South Korea’s Ministry of Trade, Industry and Energy (MOTIE) prepares to update the ROK’s NDC and its Basic Energy Plan (BEP), there is potential for enhanced collaboration with the United States. U.S. President Joe Biden and South Korean President Yoon should prioritize discussions on strengthening their NDCs and fostering cooperation on clean energy technologies during their upcoming meeting at the Washington NATO summit.
U.S. Senior Adviser for International Climate Policy John Podesta and ROK Minister of Environment Han Wha-jin should lead engagements on NDC ambitions and explore areas for collaboration beyond presidential meetings. Legislative exchanges between the U.S. Congress and ROK National Assembly could shape tailored programs addressing climate change.
Key areas for collaboration include innovation in research and development (R&D), investment incentives, social justice considerations, and international cooperation on fossil fuel financing.
South Korea could increase public funding for clean energy R&D and offer tax credits similar to those under the IRA to drive steel decarbonization, battery manufacturing, renewable energy adoption, and electric vehicle production.
Ensuring a just transition for workers in coal and gas sectors is crucial for sustaining political support for clean energy transitions. Collaboration with unions and provincial governments could facilitate retraining programs and investments in affected communities.
The United States can encourage South Korea's reassessment of financing overseas fossil fuel projects through legislative dialogues aimed at aligning with global climate goals.
Existing cooperation between both countries includes participation in initiatives like the Indo-Pacific Economic Framework (IPEF) Clean Economy pillar aimed at mobilizing investment towards clean energy sources.
South Korean companies have already benefited from IRA incentives through substantial investments in electric vehicle battery production facilities in the United States.
By adopting bold climate policies akin to those proposed by the DP's agenda, South Korea can position itself as a leader in combating climate change while enhancing economic opportunities.
