The Paris Climate Summit and Korea’s Energy Transition Policy

Cho Hyun, Vice Minister of Foreign Affairs

(unofficial translation)
* 2017.12.18. Opinion, Asia Today

Cho Hyun, Vice Minister of Foreign Affairs... fully implement an energy transition away from coal... actively execute the renewable energy 3020 initiative... run the emissions trading system stably and effectively... energy transition policies such as coal phase-out and carbon pricing “mandatory” for future growth

French President Emmanuel Macron hosted a climate summit on December 12 with UN Secretary-General António Guterres and  President Jim Yong Kim of the World Bank Group to mark the second anniversary of the Paris Agreement. The summit, joined by some 4,000 people, including government leaders and other delegates from 50-odd countries as well as non-government representatives, resembled a large-scale religious assembly, where participants seemed certain that the Paris Agreement is the only possible mechanism to respond to climate change through. The Korean delegation to the meeting, the aim of which was to reaffirm the commitment to address climate change and thereby to protect the “One Planet,”  was led by the Vice Minister of Foreign Affairs. Seoul Mayor Park Won-soon as well as former UN Secretary- General Ban Ki-moon, who played an important role in the adoption of the Paris Agreement two years ago, also attended the summit in their capacity as a representative from provincial governments of the world and a special guest, respectively.

While reaffirming their pledge to implement the Paris Agreement, participants at the summit emphasized that the time has come to translate commitment into action. However, climate action is geared towards not only greenhouse gas reductions but also the ultimate goal of a major transition towards low-carbon economy and sustainable development, with investment as a prerequisite for future growth momentum. Therefore, it has been pointed out that in reality, efficient greenhouse gas reduction using carbon pricing and other cost-effective market mechanisms, and inclusive policies that support vulnerable groups are necessary.

The Paris climate summit has made me look back on the current state of energy use in Korea. The Korean government has announced to the international community its commitment to reduce greenhouse gas emissions by 37 percent from business as usual (BAU) levels by 2030. To this end, the “national roadmap for greenhouse gas reductions by 2030” was drawn up in late 2016, and the government is undertaking a review in order to map out an upgraded version by 2018. More specifically, efforts are underway to actively implement energy transition policies, such as shutting down outdated coal-fired power plants and increasing the share of renewable energy sources to 20% by 2030. For the first time in Asia, Korea also launched a nation-wide emissions trading system in 2015.

It is true that Korea, as a resource-poor country with energy-intensive industries, has faced much skepticism regarding its proposed energy transition. But despite these limitations, Korea still holds many strengths. To begin with, Korea has developed a great deal of pride as it emerged as one of the world’s ten largest economies and accumulated a diverse range of experiences and technologies by seeking climate- and environment-friendly growth. The capacity of the private sector cannot be overlooked either. There are Korean companies that lead the solar photovoltaic (PV) market, others that dominate the electric vehicle and hydrogen-powered car markets, and still others that drive the electric battery market. Korea is home to such notable international organizations as the Global Green Growth Institute (GGGI) and the Green Climate Fund (GCF), as well as the Green Technology Center and other domestic institutions. Based on its growth potential evident from its transformation from an aid recipient to an aid donor, Korea is well positioned to enter an eco-friendly, sustainable future. 

Considering the significance and implications of the recent climate summit, the Korean government needs to expand cooperation with the private sector and foster climate values in three distinct aspects. First, its current energy transition away from coal should be executed on a stable basis with a long-term perspective. The “Powering Past Coal Alliance” led by Canada and the UK is at the forefront of international action to phase out coal power by 2050. Second, it is necessary to actively implement the “renewable energy 3020” initiative. In Korea, where greenhouse gas emissions by the energy sector make up 85% of the total emissions, increasing renewable energy and energy efficiency is not a choice but a necessity. Third, the emissions trading system, which has been in place for about three years, should be run in an effective and stable manner.  In Korea, some 600 companies that participate in the emissions trading system account for two-thirds of the total volume of greenhouse gas emissions. In revising the “national roadmap for greenhouse gas reductions by 2030” in 2018 and on, Korea should build on past experiences to make necessary improvements.

In terms of climate change policy and implementation thereof, the vision and commitment of the government is by far the most important factor. The Moon Jae-in administration is in the process of building a clean and safe energy system under its energy transition policy that is head and shoulders above the previous ones. These efforts align with the coal phase-out and carbon pricing moves, among others, which were discussed in the Paris climate summit. Korea should take a long-term perspective to reframe climate change, a crisis facing the international community, as an opportunity, and actively implement policies for future growth and take an climate action.