[Exclusive] Yoon to Revise K-Taxonomy Excluding Nuclear Power Plants

Transition Committee Reviews K-Taxonomy Revision... Accelerating 'Nuclear Phase-Out Reversal'
Full Discussions Expected as Early as May... "Many Problematic Aspects"
Nuclear Power Included in EU Taxonomy... Ministry of Environment Also Indicates Possible Revision

President-elect Yoon Suk-yeol announced his nuclear power plant pledge during his candidacy last December when he visited the construction suspension site of Shin Hanul Units 3 and 4 in Uljin County, Gyeongbuk.
[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] It has been confirmed that the Presidential Transition Committee has begun reviewing revisions to the Korean-style Green Taxonomy (K-Taxonomy). The plan is to include nuclear power in the K-Taxonomy as a core element of carbon neutrality. This is seen as accelerating the reversal of the ‘nuclear phase-out’ policy, which President-elect Yoon Seok-yeol had pledged during his campaign.

According to related ministries on the 22nd, the Transition Committee is considering adding nuclear power to the K-Taxonomy guidelines. The committee plans to officially start discussions on revising the K-Taxonomy as early as May, right after the next government takes office, in cooperation with relevant ministries such as the Ministry of Environment. A committee official stated, "The current K-Taxonomy, which excludes nuclear power, has many problematic aspects, such as negatively affecting the competitiveness of nuclear power exports," adding, "A decision should be made as soon as possible."

The taxonomy is a system that classifies eco-friendly economic activities such as greenhouse gas reduction. If classified as a green economic activity under the taxonomy, various financial benefits such as green bonds and green funds can be received. It is also used as an investment guideline by financial institutions including the National Pension Service.

Previously, the Ministry of Environment’s K-Taxonomy announced in December last year excluded nuclear power. This was because the government’s 2050 carbon neutrality scenario and the 2030 Nationally Determined Contribution (NDC) plan did not include plans for new nuclear power plants. In contrast, the European Union (EU), the originator of the taxonomy, classified nuclear power as a green industry in its EU Taxonomy draft at the end of last year.

President-elect Yoon Suk-yeol visited the site of the halted construction of Shin Hanul Units 3 and 4 in Uljin County, Gyeongbuk, last December during his candidacy and announced his nuclear power plant pledge. [Image source=Yonhap News]

The Transition Committee believes that to revitalize the nuclear power ecosystem as pledged by President-elect Yoon, nuclear power must be added to the K-Taxonomy. The committee also judges that revising the K-Taxonomy is inevitable to keep pace with the global trend of ESG (Environmental, Social, and Governance) investments.

The Ministry of Environment has also left open the possibility of revising the K-Taxonomy. The ministry plans to finalize the K-Taxonomy after referring to the final EU Taxonomy, which is expected to be confirmed around the second half of this year. A ministry official said, "The K-Taxonomy announced last year was a draft and this year is only a pilot period," adding, "We will review whether to include nuclear power before the full implementation in January next year."

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