Seoul: Nearly 40 percent of South Korean companies participating in the global Renewable Energy 100 percent (RE100) initiative are struggling to source renewable energy due to high costs and limited procurement options, a report showed Tuesday. Out of 183 South Korean firms that have joined the global campaign, 70, or 38.3 percent, expressed difficulty in sourcing enough renewable energy to power all of their operations with 100 percent renewable electricity in 2024, according to the report from the Federation of Korean Industries (FKI), citing data from the nonprofit Climate Group and the Carbon Disclosure Project (CDP).

According to Yonhap News Agency, the report highlighted a sharp increase from 39 companies experiencing similar issues in 2022, marking an 80 percent rise over the two-year period. The main challenges identified were cost burdens and a lack of available procurement mechanisms. The report also placed South Korea's 2024 figure significantly higher compared to other major economies, with 20 companies in the United States, 29 in China, and 48 in Japan facing similar difficulties.

In light of these findings, the FKI has recommended a list of 20 policy agenda items to the government to better facilitate companies' participation in the RE100 initiative. Among the suggestions are measures to provide financial incentives for firms that directly purchase electricity from power producers. An FKI official emphasized the necessity of improving systems and policy support to help Korean companies maintain international competitiveness while smoothly securing renewable energy.