{"id":2203208,"date":"2023-12-25T16:00:03","date_gmt":"2023-12-25T07:00:03","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203208"},"modified":"2023-12-26T19:26:47","modified_gmt":"2023-12-26T10:26:47","slug":"south-korea-grapples-with-how-to-balance-economic-growth-and-green-goals","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/12\/south-korea-grapples-with-how-to-balance-economic-growth-and-green-goals\/","title":{"rendered":"South Korea grapples with how to balance economic growth and green goals"},"content":{"rendered":"

South Korea\u2019s role in the global climate dialogue reflects its ongoing challenge to reconcile economic growth with environmental commitments, as it navigates the need to sustain its energy-intensive industrial base and the global push for more decisive climate action.<\/span><\/p>\n

This balancing act has become even more relevant in light of the outcomes and discussions at the latest Conference of the Parties (COP28).<\/span><\/p>\n

The summit, an intergovernmental conference on climate change, mirrored the familiar frustrations that characterized previous discussions, such as COP27 in Egypt and COP26 in Scotland. Notably, COP28\u2019s host nation was the United Arab Emirates (UAE) \u2014 a major oil-exporting nation \u2014 which brought additional scrutiny to the proceedings.<\/span><\/p>\n

Despite the controversies surrounding the host nation, COP28 concluded with a collective agreement by member states to \u201c<\/span>transition away<\/span><\/a>\u201d from relying on fossil fuels. The International Energy Agency (IEA) <\/span>stressed<\/span><\/a> the importance of this agreement, advocating for its integration into future energy investments to ensure substantive impact.<\/span><\/p>\n

In stark contrast to these global pledges, Sultan Ahmed Al Jaber \u2014 the president of COP28 and the head of Abu Dhabi National Oil Company (ADNOC), the UAE\u2019s national oil and gas company \u2014 asserted a divergent viewpoint. He <\/span>affirmed<\/span><\/a> that ADNOC would continue to invest in fossil fuel production, attributing nations\u2019 high demand as the driving factor behind energy source decisions.<\/span><\/p>\n

While Al Jaber\u2019s stance is contentious, it parallels South Korea\u2019s situation. The ROK is a key supplier of equipment and technology essential for the transition to green energy, and its industrial capabilities and choices will have a significant impact on global energy supply and demand.<\/span><\/p>\n

STRATEGIC BALANCING<\/b><\/p>\n

South Korea\u2019s participation in the COP summits typically receives minimal media attention. This aligns with the ROK\u2019s calculated and understated approach to these global environmental discussions.\u00a0<\/span><\/p>\n

During COP28, rather than elaborating on its <\/span>overall stance<\/span><\/a> on addressing climate change, South Korea chose to focus on a specific initiative: the launch of the <\/span>Carbon Free Alliance<\/span><\/a> (CFA).<\/span><\/p>\n

The CFA advocates using natural gas (LPG) and hydrogen energy to decarbonize supply chains through public-private partnerships, and South Korea seeks to extend this effort to other developing economies.<\/span><\/p>\n

The rationale behind the CFA is that renewable energy sources alone cannot meet South Korea\u2019s industrial power demands, thus requiring the integration of additional low-carbon or carbon-free energy sources.<\/span><\/p>\n

This stance has faced criticism for potentially <\/span>obscuring the extent<\/span><\/a> of South Korea\u2019s reliance on fossil fuels, but the CFA is still <\/span>influential<\/span><\/a> in shaping climate policy, backed by some of the ROK\u2019s<\/span> largest conglomerates<\/span><\/a> and state-run utilities.<\/span><\/p>\n

Additionally, the <\/span>Declaration to Triple Nuclear Energy Capacity<\/span><\/a> reflects the international aspect of South Korea\u2019s energy strategy. This U.S.-led initiative, supported by 22 countries, aims to triple nuclear power generation from 2020 levels. Its objectives are twofold: reducing carbon emissions and reducing reliance on Russian oil and gas.<\/span><\/p>\n

The private sector\u2019s active involvement in the CFA and the nuclear energy declaration highlights a strategic shift in energy generation. This shift goes beyond traditional renewable resources to include alternatives like natural gas, hydrogen and nuclear energy.<\/span><\/p>\n

South Korea\u2019s participation in these initiatives at COP28 underscores its commitment to a green growth strategy in climate negotiations. This approach positions the private sector as a key driver in formulating energy policies, and it cements Seoul\u2019s role as a key player in developing critical technologies for the green transition.<\/span><\/p>\n

However, a closer examination shows that while South Korea is at the forefront of technological solutions for climate change, its initiatives also raise questions about the balance between industrial growth and genuine environmental sustainability.<\/span><\/p>\n

\"\"

An illustration depicting South Korea’s industrial production | Image: Korea Pro<\/em><\/p><\/div>\n

INDUSTRIAL RESISTANCE<\/b><\/p>\n

Since the earliest COP summits, South Korea\u2019s approach has been characterized by a cautious \u201cwait-and-see\u201d attitude, aiming to maintain policy flexibility in light of industries\u2019 <\/span>crucial role<\/span><\/a> in its economic growth. The South Korean industrial sector\u2019s significant energy demands to maintain production output remain one of its most persistent environmental challenges.<\/span><\/p>\n

As of 2018, fossil fuels accounted for <\/span>85%<\/span><\/a> of South Korea\u2019s primary energy supply. By 2020, industrial production was responsible for half of the nation\u2019s energy consumption, with machinery production alone constituting <\/span>80.8%<\/span><\/a>. Moreover, greenhouse gas (GHG) emissions from shipping increased by <\/span>over 600%<\/span><\/a> in 2019 compared to 1990 levels.<\/span><\/p>\n

Today, South Korea has established itself as a key player in manufacturing and exporting clean energy technology, such as electric vehicles and their components, like energy storage systems. This prominence has afforded South Korea significant influence in climate change negotiations.<\/span><\/p>\n

However, leading Korean industries, notably automobile manufacturing, have resisted stringent government interventions. Measures like the EU Taxonomy Regulation or setting national <\/span>GHG emission targets<\/span><\/a>, which could potentially impact the country\u2019s industrial competitiveness, have faced pushback.<\/span><\/p>\n

In response to more ambitious sustainability regulations, carbon-intensive sectors like automobile manufacturing and energy storage have often engaged in strategic maneuvering to circumvent these regulations. This tendency stems largely from South Korea\u2019s <\/span>preference for market-based solutions<\/span><\/a> over command-and-control policy approaches.<\/span><\/p>\n

GREEN GROWTH FOCUS<\/b><\/p>\n

The South Korean government has endeavored to strike a balance: On the one hand, it promotes key industries as vital engines of economic growth, and on the other, it seeks to enhance the nation\u2019s sustainability ambitions despite the energy-intensive nature of these industries.<\/span><\/p>\n

This balancing act has led to green growth becoming the cornerstone of South Korea\u2019s strategy for mitigating and adapting to climate change, eventually evolving into a greater <\/span>emphasis on green technologies<\/span><\/a>.<\/span><\/p>\n

The concept of a green economy, which aims to sustain economic growth alongside sustainable development, strengthened following the U.N. Conference on Sustainable Development (Rio+20) in 2012. It embraced three fundamental principles: low carbon emissions, resource efficiency and social inclusivity.<\/span><\/p>\n

Given the private sector\u2019s <\/span>significant role<\/span><\/a> in energy transition, infrastructure development and the transfer of environmentally sound technologies, South Korea\u2019s adoption of this concept was a logical step.<\/span><\/p>\n

Expanding on this, South Korea has leveraged the green economy concept as a <\/span>diplomatic strategy<\/span><\/a>, positioning itself as a \u201cmiddle power\u201d in the geoeconomic landscape, notably between major players like the U.S. and China. This strategy has borne fruit, with South Korea emerging as a <\/span>key exporter<\/span><\/a> of green transition technologies to the U.S. and Europe, often as alternatives to Chinese products.<\/span><\/p>\n

Considering these dynamics, South Korea will likely continue to balance its industrial growth and environmental commitments with a continued focus on advancing green technologies. However, the challenge lies in aligning these technological advancements with broader environmental goals without compromising ecosystem services or over-relying on fossil fuels.<\/span><\/p>\n

South Korea will continue to adapt its economic and environmental policies in response to domestic and international sustainability pressures, especially as global environmental standards evolve and the international community places greater emphasis on comprehensive sustainable development.<\/span><\/p>\n

This evolving approach may involve a more integrated strategy that considers the environmental impacts of industrial processes alongside the pursuit of technological innovation in the green sector. This approach will likely include a more comprehensive strategy that simultaneously addresses industrial activities\u2019 environmental impact and fosters technological innovation in the green sector.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

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