Three Months Left for the '2050 Low-Carbon Strategy'... Urgent Need to Solve Environmental Prioritization Challenges

As Part of the Paris Agreement, Submission Due by Year-End
9th Basic Electricity Plan and Energy Supply Plan to Be Announced Before Announcement
Controversy Over Environmental Dispatch Raised in 3rd Emission Permit Plan Expected to Continue
Intensity of Environmental Dispatch Application to Impact '2050 Strategy'

[Asia Economy Reporter Moon Chaeseok] Last year, the amount of greenhouse gases emitted in South Korea decreased by 3.4% compared to the previous year, totaling 728 million tons, drawing attention to the '2050 Long-term Low Carbon Development Strategy (2050 Strategy)' to be prepared within three months.

◆'2050 Long-term Low Carbon Development Strategy' to be announced by year-end... Part of the Paris Agreement

[Image source=Reuters Yonhap News]

The government has pursued carbon reduction strategies such as ▲reducing emissions to 536 million tons by 2030, a 24.4% decrease from the 2017 emission level of 709 million tons, ▲reducing coal power generation in the power supply plan through 2034 (tentatively announced on May 8), and ▲allocating emission permits favorably to companies with lower greenhouse gas emissions.

In July, it also announced the 'Green New Deal' policy, which involves investing 73.4 trillion won by 2025 to carry out eight core tasks.

Amid this, the '2050 Long-term Low Carbon Development Strategy,' considered the highest principle related to greenhouse gas reduction, is scheduled to be unveiled by the end of the year, attracting attention.

Earlier, on the 17th of last month, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated, "We will lead climate change response in cooperation with the international community," and added, "To this end, we will implement the UN Paris Agreement and prepare the 2050 Long-term Low Carbon Development Strategy by the end of this year to submit it to the United Nations (UN)."

This strategy is part of the 'Special Report on Global Warming of 1.5℃' adopted in 2018 by the Intergovernmental Panel on Climate Change (IPCC), a follow-up to the 2015 Paris Climate Agreement, aiming to limit the global average temperature rise to within 1.5℃ above pre-industrial levels and achieve net zero (carbon neutral) emissions by 2050.

According to the '2050 Strategy Review Draft' announced by the government in February through the '2050 Low Carbon Society Vision Forum,' it includes recommendations that "through social discussions, public awareness should be transformed, and specific tasks should be promoted across all sectors of the nation to achieve the low carbon transition by 2050."

◆Net Zero vs. Reduction Debate... Preliminary Battle in Emission Permits and Energy Supply Strategies

The debate between net zero and carbon reduction is intense.

Although there is already a presidential advisory body, the National Climate and Environment Council, some suggest establishing a whole-of-government organization to realize net zero, while others argue that net zero is practically difficult and advocate for gradual carbon reduction.

Attention is focused on the '9th Basic Plan for Electricity Supply and Demand (9th Electricity Plan),' which will be announced just before the 2050 Strategy. Although a draft was released on May 8, the government’s official plan has not yet been announced.

On the 29th of last month, the '3rd National Greenhouse Gas Emission Permit Allocation Plan (3rd Plan)' for 2021-2025 was approved at the Cabinet meeting, establishing a framework to "reduce free coal allocations and increase liquefied natural gas (LNG) allocations."

The Ministry of Trade, Industry and Energy plans to introduce a total coal power generation cap and coal pricing system by the first half of 2023, while the Ministry of Environment proposed strengthening the coefficient system for the integrated emission efficiency standard allocation method (BM) in the power sector under the 3rd Plan.

The basic message of the 3rd Plan is that by applying the principle of reducing the burden of purchasing emission permits for companies with high emission efficiency, it is possible to induce binding greenhouse gas reductions in the less efficient coal power industry.

In response, the coal power industry has opposed, arguing that excessive cost burdens could lead to electricity rate increases.

◆Environmental Dispatch, Emission Permits, and Power Supply Plans as Major Issues... Impact on '2050 Strategy' Policy Speed

[Image source=Yonhap News]

Environmental dispatch is the biggest issue in the 9th Electricity Plan, with the Ministry of Environment and the Ministry of Trade, Industry and Energy discussing how much environmental consideration should be included in the energy source supply plan.

Since the emission coefficient principles between coal and LNG were established through the Ministry of Environment’s 3rd emission permit plan, the formulation of the 9th Electricity Plan is expected to gain momentum.

The Ministry of Trade, Industry and Energy plans to announce the '5th Basic Plan for New and Renewable Energy (5th New Basic Plan),' which will specify the supply and demand strategy for new and renewable energy after the announcement of the 9th Electricity Plan.

Once the major framework of energy policy, which has a large share of carbon emissions, is established, the speed and direction of carbon reduction policies will be revealed in the '2050 Strategy.'

Earlier, on the 29th of last month, the Korea Institute for International Economic Policy, a government-funded research institute, published a report emphasizing the need to establish a whole-of-government organization to continue the Green New Deal policy beyond 2025 and strengthen the linkage between the 2050 Strategy and the Green New Deal.

This content was produced with the assistance of AI translation services.