Korea’s Carbon-Free Alliance should complement other climate initiatives

By Song Kyung-jin

This summer was hotter and longer than usual. Summer-like weather continued even during the Chuseok holiday when the weather usually cools. It was a wake-up call for many experiencing climate change firsthand to pay attention to rapid climate change response and specific measures.

In October 2021, the Korean government announced its commitment to reducing greenhouse gas emissions by 40 percent from the 2018 level and achieving net-zero emissions by 2050 which is well enshrined in law through the Carbon Neutrality Act of 2021.

At the 78th session of the United Nations General Assembly last month President Yoon Suk Yeol proposed to the world a Korea-led global "Carbon-Free Alliance" (CFA) to promote the adoption of carbon-free energy such as nuclear power and hydrogen to expedite carbon neutrality. According to the Ministry of Trade, Industry and Energy, the CFA will become an entity with the launch of the Korean chapter this month.

It is a positive step in the right direction given that climate response is urgently needed. The global goal of carbon neutrality should not be delayed for the survival of Earth and humankind.

Also, in view of the fact that the first phase of the Carbon Border Adjustment Mechanism (CBAM) of the European Union (EU) took effect on Oct. 1, CBAM will enter into full implementation in 2026. Carbon taxes will be imposed on products imported into the EU that emit more carbon than EU products. It will likely drive up the price of carbon-intensive products and thus influence consumer choices significantly.

The first phase requires exporters to the EU in six carbon-intensive industrial sectors to report their emissions to EU authorities. They include the iron and steel, cement, fertilizers, aluminum, electricity generation and hydrogen industries which produce significant amounts of greenhouse gases. Korea, being a major manufacturer and exporter of these products, is facing an immediate challenge to reduce carbon emissions, not just for environmental but trade and economic purposes. The steel industry is predicted to be heavily affected by the EU’s CBAM.

The Korea-led CFA can provide support to corporates to deal with the carbon neutrality issue including the CBAM. It should also complement the efforts of other initiatives such as RE100, which aims at 100 percent renewable energy, and vice versa. There seems a suspicion, or a distorted view, that the Korean government is attempting to replace RE100 with the new initiative. This is far from true. The global community should mobilize all available resources and mechanisms and ensure they work in harmony and in alignment for achieving the net-zero goal. A number of large Korean corporates are already members of RE100. Amorepacific, a Korean cosmetics giant, was chosen as one of the six winners of the RE1000 Leadership Awards 2023 last month. At the same time, Korea needs to increase the share of its electricity from renewables, currently standing at 2 percent, far lower than the levels of China (32 percent), Singapore (26 percent) and Japan (15 percent).

In relation to this, and also as a clear expression of its commitment to carbon neutrality, Korea should join the International Solar Alliance (ISA), a treaty-based intergovernmental organization, as soon as possible. The ISA jointly led by India and France and launched in 2015 aims at cooperation for the efficient consumption of solar energy to reduce dependence on fossil fuels. It has more than 120 signatory countries including the United States, Japan, France and India. Korea should not miss the opportunity for international collaboration.

The Korean government should ensure that the CFA’s promotion of carbon-free energy, particularly nuclear energy, comes as a package with nuclear waste reprocessing in place. Nuclear energy is classified as green energy equipped with reprocessing facilities in the EU taxonomy, for instance. Added to it, as of 2025, existing and new build projects must use accident-tolerant fuel. France, another nuclear giant whom Korea wishes to collaborate with for the CFA, is proceeding with nuclear projects following the requirements in the EU taxonomy. Without satisfying these internationally accepted requirements, the Korea-led CFA can go only so far as a carbon neutrality initiative.

Therefore, Yoon’s idea of establishing a global joint research center on carbon-free energy should be a concurrent project under which technological innovation necessary for reprocessing is encouraged and expedited.

Korea should extend its goodwill and assistance to the so-called Global South as part of its CFA. Carbon neutrality is an even greater challenge for developing countries with shortages of resources and expertise to deal with the necessary infrastructure to reduce carbon emissions. As Yoon mentioned, Korea’s official development assistance can be a conduit of assistance, both financial and technical, to developing countries for carbon emissions reduction in alignment with their carbon neutrality goals. Taxpayers would like to see the money well spent for the existential global cause.

Dr. Song Kyung-jin (kj_song@hotmail.com) led the Institute for Global Economics (IGE), based in Seoul and served as special adviser to the chairman of the Presidential Committee for the Seoul G20 Summit in the Office of the President. Now, she is executive director of the Innovative Economy Forum.