Minister of Industry: "Establish 'Energy Carbon Neutrality Innovation Strategy' by Next Year"

Sung Yun-mo "87% of Korea's Greenhouse Gases Originate from Energy"
"A Major Transformation of the Energy Supply, Transmission, and Consumption System is Needed"

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy announcing the Ministry's policy on the '2050 Carbon Neutrality Promotion Strategy' together with ministers from related ministries at the government complex on the 7th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Sung Yoon-mo, Minister of Trade, Industry and Energy, announced that an 'Energy Carbon Neutrality Innovation Strategy' will be established by next year. This strategy will be prepared and announced separately from the soon-to-be-released '9th Basic Plan for Electricity Supply and Demand' and the '5th Basic Plan for New and Renewable Energy' by the fourth quarter of next year.

Minister Sung stated on the 7th, following the '2050 Carbon Neutrality Promotion Strategy,' that "bold innovations will be pursued across four major areas: supply, grid, industry, and system."

He emphasized, "The power generation sector accounts for 36% of the nation's greenhouse gas emissions, and when including energy directly consumed in industry, transportation, and buildings, 87% of the country's greenhouse gases originate from energy. Energy is the most critical sector for carbon neutrality."

He acknowledged that achieving carbon neutrality in the energy sector is challenging due to South Korea's high dependence on fossil fuels and low proportion of renewable energy. He judged that a major transformation of the existing energy system, including supply, transmission, and consumption, is necessary.

To innovate supply first, he announced plans to accelerate the spread of renewable energy through the Green New Deal. The plan includes improving institutional frameworks such as integrated permitting organizations, planned siting, and benefit-sharing systems to enhance the acceptability and environmental compatibility of renewable energy.

Regarding coal power, the goal is zero greenhouse gas emissions by 2050, with plans to develop Carbon Capture, Utilization, and Storage (CCUS) technology and establish legal grounds for voluntary reductions.

For grid innovation, the renewable energy power grid will be reinforced to respond to high variability. The expansion of distributed power systems such as self-consumption activation and village-level microgrids is also planned.

To innovate industry, efforts will be made to promote technology development, tax and investment support. Early activation of the hydrogen economy and support for creating new energy industries such as big data demand management will be pursued.

Finally, to innovate systems, energy market regulations will be reformed. The goal is to expand private investment and activate new businesses. They also aim to improve power consumption efficiency through a flexible and rational electricity tariff system.

Minister Sung made it clear that energy supply and demand is a prerequisite for promoting carbon neutrality.

He said, "Based on precise demand forecasts, we will establish the 'Energy Carbon Neutrality Innovation Strategy' by next year and sequentially revise related plans such as electricity and new renewables. We will do our best to promote carbon neutrality while ensuring stable energy supply and demand."

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