Launch of the Ministry of Climate, Energy and Environment... Golden Time for Climate Crisis Response, Industry Voices Concern Over 'Chemical Integration'

With the launch of the Ministry of Climate, Energy and Environment, which was promoted by the Lee Jaemyung administration, the government has publicly expressed its determination to drive climate crisis response and a sustainable energy transition. However, since the ministry combines the distinct functions of environmental regulation and industrial promotion, there are expectations that the success of its early establishment will depend on how well it manages the balance between carbon reduction initiatives and energy security.

According to relevant ministries and the energy industry on October 2, industry officials evaluated the launch of the ministry as a new starting point for Korea's climate governance. This is based on the expectation that, by overseeing both the climate and environmental policies previously managed by the Ministry of Environment and now energy policy as well, the ministry can serve as an effective control tower.

Under the revised Government Organization Act, the ministry will operate with two vice ministers. The first vice minister will oversee existing Ministry of Environment functions such as resource circulation, water management, air quality, and environmental health, while the second vice minister will be responsible for climate and energy sectors. The Energy Policy Office, previously under the second vice minister of the Ministry of Trade, Industry and Energy, will be merged with the Climate Office of the Ministry of Environment to form the organization under the second vice minister of the new ministry. As a result, core energy functions such as the Nuclear Industry Policy Bureau, Power Policy Bureau, Renewable Energy Policy Bureau, and Hydrogen Economy Policy Bureau have also been transferred to the ministry. More than 20 major energy public enterprises, including Korea Electric Power Corporation and Korea Hydro & Nuclear Power, have also changed their affiliation.

Yonhap News Agency

The most significant change brought by the launch of the ministry is the establishment of policy consistency in the climate and energy sectors. The integration allows for the development of highly efficient policies by linking the Basic Plan for Electricity Supply and Demand, previously managed by the Ministry of Trade, Industry and Energy, with the 2035 Nationally Determined Contribution (NDC) for greenhouse gas reduction, which was under the Ministry of Environment. Kim Sunghwan, the inaugural minister, emphasized, "The ministry will establish a clear roadmap as a true control tower."

The key issue is how quickly the newly established organization can achieve internal cohesion. Some observers remain concerned that the traditional regulatory nature of the Ministry of Environment may inevitably clash with the industrial promotion orientation of the Ministry of Trade, Industry and Energy. The National Assembly Research Service also pointed out in a report that "there are concerns about whether conflicting policy objectives can be smoothly integrated within a single ministry."

In fact, Minister Kim's inaugural speech on October 1 was assessed as placing greater emphasis on the climate and environment sectors. This is because four out of the five main policy initiatives he mentioned are directly related to decarbonization and carbon neutrality. Specifically, the ministry plans to drive a major transition of the energy system toward renewables such as solar and wind power, and to foster carbon-neutral industries like electric vehicles, batteries, and energy storage systems (ESS) as new national growth engines.

Immediately, there were concerns from industry and energy public enterprises about the potential contraction of the coal-fired and nuclear power sectors. Public enterprises operating coal-fired power plants, which account for a significant portion of domestic power generation, may face increased pressure to reduce energy production following their incorporation into the ministry. The key issue is whether stable and affordable electricity can be adequately supplied during the transition to renewables. Overly aggressive policies could reduce the share of nuclear power, which currently maintains the lowest production costs, and thermal energy, which accounts for about 45% of Korea's total energy consumption, potentially leading to supply and demand imbalances.

Yoo Seunghoon, professor at the Department of Future Energy Convergence at Seoul National University of Science and Technology, expressed hope for the ministry's role but noted that concerns about policy coordination remain unresolved. In a phone interview, he stated, "Half of the energy-related departments, including the petroleum and gas industries, mineral management for coal and uranium, and nuclear power export divisions, remain within the Ministry of Trade, Industry and Energy. With only some energy departments transferred to the new ministry and others remaining, we will have to wait and see whether the coordination functions between ministries will work properly."

'From Tomorrow, the Ministry of Climate, Energy and Environment' (Sejong=Yonhap News) Reporter Bae Jaeman = With the government organization restructuring plan to expand the energy policy functions to the Ministry of Environment and rename it the Ministry of Climate, Energy and Environment confirmed by the Cabinet meeting on the 30th, the expanded Ministry of Climate, Energy and Environment will officially launch on the 1st of next month. On the 30th, the installation work of the Ministry of Climate, Energy and Environment signboard was in full swing on the outer wall of the Government Complex Sejong. 2025.9.30 scoop@yna.co.kr (End) Photo by Bae Jaeman

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