Page 4 - AsiaElec Week 43 2020

AsiaElec COMMENTARY AsiaElec

South Korea commits to net zero

South Korea has joined Japan and China is setting a 2050 carbon neutral target

SOUTH Korea and Japan have followed China welcomed South Korean investment and tech-
SOUTH KOREA in pledging to be carbon neutral by 2050. nology to build new coal capacity to meet rising
South Korean President Moon Jae-in told demand for power.
WHAT: the country’s National Assembly on October 28 For example, Samsung C&T has announced
South Korea commits to that South Korea would “actively respond” to the it will withdraw from any coal-related business
net zero by 2050 climate emergency “with the international com- in the future following a recommendation from
munity and achieve carbon neutrality by 2050.” its governance committee seeking environ-
WHY: “Transitioning from coal to renewable ment-friendly corporate actions.
Seoul aims to move to energy, the government will create new markets, The company’s construction unit will not take
new markets, industries industries and jobs,” he said. part in investment or building projects of coal
and jobs by transitioning The country now follows Japan and China is power plants, while its trading unit will also halt
from coal to renewable setting the 2050 target. coal trading.
energy He said that the country’s existing Green In contrast, Kepco said earlier in October that
New Deal policy would spearhead efforts to end it would invest $189mn in the proposed 1,200-
WHAT NEXT: dependence on coal and to promote renewable MW Vung Ang 2 coal power project in Vietnam,
All countries need to energy instead. with the Economy and Trade ministries backing
develop robust plans The New Deal policy would invest $61.9bn the deal, although the Environment ministry
to keep the green green infrastructure, clean energy and electric opposed it.
momentum going over vehicles (EVs). It also calls for a new carbon tax, The state-owned utility also has projects in
three decades increased recycling, new low-carbon industrial the Philippines and Indonesia.
complexes and a state investment vehicle to ring-
fence spending on new and renewable energy. Asian decisions
It would create 320,000 new green jobs in Seoul’s decision follows on from Japan last week,
what would represent a major restructuring of when Prime Minister Yoshihide Suga set the
the country’s energy economy. 2050 target.
Moon said this week that his government Meeting the net-zero target by 2050 will be a
would earmark $7bn of the country’s post-coro- major challenge for Japan, even though it is fol-
navirus (COVID-19) financial stimulus package lowing other G7 industrialised nations such as
on renewables and green economic growth. the UK, Germany and Canada in making these
The decision comes after Moon spent the last commitments.
year calling for a cleaner, less fossil-fuel reliant However, Japan still plans to have coal and
economy, fighting the April presidential election gas generating 56% of its power by 2030, well
partly on a pro-green platform. behind the IEA’s recent guidelines for reaching
Since then, the South Korean government net zero by 2050.
has committed to take coal offline by 2040 but Indeed, coal accounts for 32% of Japan’s
at present, it relies on coal for about 40% of its energy supply mix, although the government
electricity generation. wants to reduce this to 26% by 2030.
Furthermore, Seoul’s plans for phasing out Elsewhere in Asia, China made the
coal rely more on gas than on renewables. ground-breaking decision in September to tar-
“There is much to be done to make this dec- get net-zero emissions by 2050.
laration actually meaningful. The most urgent Australia, which exports coal to Japan, China
tasks are enhancing its 2030 emissions reduction and South Korea, remains unconcerned about
target, presenting a clear roadmap to phase out the effect these country’s net-zero emissions
coal by 2030, and putting a complete stop to coal goals could have on future exports of coal.
financing,” said Joojin Kim, managing director China, Japan, the UK (which has also com-
of Seoul-based environmental think-thank Solu- mitted to reducing emissions) and South Korea
tions for Our Climate. account for more than AUD310bn ($219bn) in
Australian exports, the Sydney Morning Herald
Foreign investment noted.
Crucially, Moon’s new approach also calls for Japan alone bought coal worth AUD9.6bn
an end to the financing of overseas coal plants, ($6.77bn) from Australia in 2019.
which are often built by South Korea’s industrial Coal and natural gas alone are worth more
giants such as Kepco and Samsung. than 25% of Australia’s exports, or AUD110bn
This has proved controversial in emerging ($77.6bn) each year.
economies in Asia and Africa, where coun- Another regional coal exporter is Indonesia,
tries such as South Africa and Vietnam have which could also face declining demand for its

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