{"id":2207279,"date":"2024-11-28T13:57:54","date_gmt":"2024-11-28T04:57:54","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207279"},"modified":"2024-11-28T13:57:54","modified_gmt":"2024-11-28T04:57:54","slug":"south-korea-leverages-climate-deals-abroad-but-faces-environmental-scrutiny","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/11\/south-korea-leverages-climate-deals-abroad-but-faces-environmental-scrutiny\/","title":{"rendered":"South Korea leverages climate deals abroad but faces environmental scrutiny"},"content":{"rendered":"

South Korea is leveraging global climate agreements to meet its ambitious greenhouse gas (GHG) reduction targets, but one of its strategies involving GHG offsets raises complex questions about legal risks, environmental integrity and economic priorities.<\/span><\/p>\n

At the \u201cGlobal Net Zero Connection 2024,\u201d South Korea <\/span>signed memoranda of understanding<\/span><\/a> (MOUs) with Bangladesh and Cambodia to frame the implementation of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement.<\/span><\/p>\n

These agreements allow states to offset domestic emissions by investing in eligible climate mitigation and adaptation activities such as renewable energy plants, reforestation efforts or clean energy infrastructure abroad. For South Korea, ITMOs implemented through these MOUs can advance both its climate goals with economic interests, such as strengthening its supply chain security in green technologies while meeting progressively ambitious emissions reduction goals.<\/span><\/p>\n

While these MOUs represent one strategy toward further positioning South Korea as a significant player in global climate diplomacy, they also expose it to challenges, including legal ambiguities, concerns over environmental integrity and the risk inherent in relying on external emissions offsets.<\/span><\/p>\n

\"\"

The Eiffel Tower in Paris, France, is illuminated in green to celebrate the entry into force of the Paris Agreement, the most ambitious climate change agreement in history, on November 4, 2016 | Image: U.S. Department of State via Flickr<\/a><\/p><\/div>\n

A TOOL FOR GLOBAL CLIMATE ACTION<\/b><\/p>\n

ITMOs, a core mechanism under Article 6.2 of the Paris Agreement, enable countries to transfer emissions credits generated through overseas initiatives. This system is designed to create pathways for\u00a0 participating economies to help meet reduction goals in their Nationally Determined Contributions (NDCs) while injecting capital investment that can help advance sustainable development in countries with low emissions.<\/span><\/p>\n

South Korea\u2019s participation in ITMO projects helps it meet its emission reduction targets through complementing domestic reductions achieved by its domestic industries. For host states like Cambodia and Bangladesh, ITMOs can bring vital <\/span>investment and technology<\/span><\/a> to their climate efforts, with South Korea providing expertise in renewable energy and clean technologies.<\/span><\/p>\n

However, global debates surrounding ITMO implementation reflect persistent and legitimate concerns. Critics argue that ITMOs risk <\/span>replicating flaws<\/span><\/a> of earlier market mechanisms under the Kyoto Protocol, which were criticized for overstating reductions through double counting and allowing high-emission countries to avoid meaningful domestic action.<\/span><\/p>\n

Without robust international standards, the credibility of ITMOs depends heavily on transparent implementation as there is more attention globally on sustainability disclosures. South Korea\u2019s involvement in this mechanism elevates its role in shaping these discussions, but it also underscores the challenges of working within an incomplete regulatory framework, particularly for private-sector actors driving these projects.<\/span><\/p>\n

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South Korean President Yoon Suk-yeol meets with Bangladeshi Prime Minister Sheikh Hasina at the G20 Summit on Sep. 9, 2023 | Image: ROK Presidential Office<\/a><\/p><\/div>\n

ALIGNING CLIMATE AND ECONOMIC GOALS<\/b><\/p>\n

South Korea\u2019s use of MOUs represents a strategic attempt to integrate climate action with economic objectives. These agreements that are not necessarily legally binding allow South Korea to build partnerships that reflect both its environmental commitments and its <\/span>geoeconomic priorities<\/span><\/a>.<\/span><\/p>\n

The MOUs signed with Bangladesh and Cambodia highlight this dual focus, as these nations are not only key suppliers of raw materials but also key investment destinations for South Korean conglomerates, particularly important in supply chains for green technologies.<\/span><\/p>\n

South Korea\u2019s reliance on resource imports, including rare earth elements and other critical minerals, makes collaboration with resource-rich developing countries essential.<\/span><\/p>\n

At the same time, these nations\u2019 demand for clean energy solutions creates opportunities for South Korea to expand exports of technologies such as biomass alternatives, energy-efficient systems, and renewable energy infrastructure.<\/span><\/p>\n

This mutually beneficial dynamic underscores the strategic importance of <\/span>private-sector participation<\/span><\/a> in ITMO-related projects.<\/span><\/p>\n

For instance, <\/span>KPower<\/span><\/a>, a South Korean climate technology company, recently launched an ITMO-approved biomass project in Vietnam that exemplifies this approach. The project replaces coal combustion with biomass fuel to generate steam power, contributing to Vietnam\u2019s emissions reductions while providing credits that South Korea can apply to its NDC targets.<\/span><\/p>\n

Such projects demonstrate how South Korea is fostering public-private partnerships to advance both climate and economic goals, though they also highlight the complexities of relying on external offsets for domestic climate ambitions.<\/span><\/p>\n

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South Korean President Yoon Suk-yeol participates in a public livelihood debate, Feb. 21, 2024 | Image: ROK Presidential Office<\/p><\/div>\n

RISKS AND CHALLENGES<\/b><\/p>\n

Despite their promise, MOUs and ITMOs are fraught with risks that could undermine South Korea\u2019s efforts. One major issue is the legal ambiguity of MOUs, which lack binding provisions for both the host state and the Korean investor. This makes enforcement difficult if either party fails to deliver promised outcomes or alters terms mid-project.<\/span><\/p>\n

Companies participating in ITMO initiatives could face financial losses without such guarantees, further compounded by the absence of universally agreed standards for <\/span>verification and accountability<\/span><\/a>.<\/span><\/p>\n

Environmental integrity remains a pressing concern. Critics warn that ITMOs may become a loophole for high-emission countries to outsource their climate obligations without addressing systemic challenges.<\/span><\/p>\n

The parallels with earlier carbon offset schemes, which were widely criticized for enabling business-as-usual emissions, are hard to ignore. If reductions achieved through ITMOs in Korea do not meet international standards as this issue gains increasing international attention, then South Korea\u2019s climate efforts risk being viewed as insufficiently rigorous and opportunistic.<\/span><\/p>\n

These concerns mirror those over the potential <\/span>misuse of official development assistance<\/span><\/a> (ODA) further complicate South Korea\u2019s strategy. While the government emphasizes mutual benefits, there is a risk that development aid could be seen as prioritizing South Korea\u2019s economic interests over the needs of host states.<\/span><\/p>\n

Such perceptions could damage South Korea\u2019s standing in global climate governance and strain relationships with partner nations.<\/span><\/p>\n

Over reliance on external offsets also poses a strategic risk. If emissions reductions achieved abroad are used to enable highly emitting industrial activities at home, South Korea could face criticism for failing to meet its domestic climate commitments.<\/span><\/p>\n

For example, relying on ITMOs could allow South Korea to delay necessary reforms to reduce domestic coal use, which still accounts for a third of its energy mix. This delay may, in turn, impact South Korea\u2019s export competitiveness as the rigour of sustainability regulation in key markets become increasingly stringent, such as in the European Union.<\/span><\/p>\n

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Ministers from South Korea and Cambodia sign MOUs during the Cambodian prime minister’s visit to Seoul on May 16, 2024 | Image: ROK Presidential Office<\/a><\/p><\/div>\n

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

South Korea\u2019s ITMO strategy reflects its broader geoeconomic goals, particularly in securing access to critical minerals and maintaining its leadership in green technology. Partnerships with developing countries like Cambodia and Bangladesh are essential for ensuring supply chain resilience while expanding market opportunities for South Korean exports.<\/span><\/p>\n

However, integrating ITMO-related agreements with broader trade and investment frameworks risks diluting their environmental focus. For example, South Korea\u2019s 2023 MOU with Vietnam included ITMO provisions alongside agreements on supply chain cooperation.<\/span><\/p>\n

While this interconnected approach enhances economic resilience, it raises questions about whether economic considerations are taking precedence over climate objectives.<\/span><\/p>\n

Critics <\/span>argue<\/span><\/a> that dependency on ITMOs for emissions reductions may incentivize South Korea to delay meaningful changes to its high-emitting sectors. Striking a balance between economic growth and environmental sustainability will be crucial as global scrutiny of climate commitments intensifies.<\/span><\/p>\n

THE ROAD AHEAD<\/b><\/p>\n

South Korea\u2019s use of MOUs under Article 6.2 highlights its ambition to integrate climate diplomacy with economic strategy, positioning the country as a potential leader in global climate action. These agreements enable South Korea to leverage international partnerships to meet emissions reduction targets while promoting its green technology exports.<\/span><\/p>\n

However, this strategy is not without risks. Legal ambiguities, concerns about environmental integrity and the potential misuse of development aid threaten to undermine the credibility of South Korea\u2019s climate efforts.<\/span><\/p>\n

To navigate these challenges, South Korea will need to actively engage in shaping international standards for ITMOs and ensure that its projects deliver transparent and measurable results.<\/span><\/p>\n

If implemented effectively, South Korea\u2019s approach could set a precedent for integrating economic and climate goals, cementing its role as a key player in the global transition to sustainability.<\/span><\/p>\n

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

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

South Korea is leveraging global climate agreements to meet its ambitious greenhouse gas (GHG) reduction targets, but one of its strategies involving GHG offsets raises complex questions about legal risks, environmental integrity and economic priorities. At the \u201cGlobal Net Zero Connection 2024,\u201d South Korea signed memoranda of understanding (MOUs) with Bangladesh and Cambodia to frame […]<\/p>\n","protected":false},"author":10909,"featured_media":2206387,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,28],"class_list":["post-2207279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-inter-korean-foreign-relations"],"yoast_head":"\nSouth Korea leverages climate deals abroad but faces environmental scrutiny - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/11\/south-korea-leverages-climate-deals-abroad-but-faces-environmental-scrutiny\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea leverages climate deals abroad but faces environmental scrutiny - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea is leveraging global climate agreements to meet its ambitious greenhouse gas (GHG) reduction targets, but one of its strategies involving GHG offsets raises complex questions about legal risks, environmental integrity and economic priorities. 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