Seoul: The government and the ruling Democratic Party of Korea have agreed to set a 2035 target for reducing the nation's greenhouse gas emissions by 53 to 61 percent of 2018 levels, sparking concerns among major industries. This decision comes as countries adhering to the 2015 Paris Agreement on climate change are required to update their Nationally Determined Contributions (NDCs) every five years.
According to Yonhap News Agency, the government is poised to finalize the NDC proposal this week and submit it to the United Nations next week. Once submitted, the target cannot be reduced. However, the manufacturing sectors, which are significant contributors to carbon emissions in South Korea's economy, have voiced that even a 47 percent reduction is challenging. The existing 40 percent NDC goal set for 2030 is already a substantial hurdle for these industries.
Key industries such as steel, oil refining, cement, and petrochemicals are anticipated to incur additional costs, approximately 5 trillion won ($3.4 billion), for greenhouse gas emission allowances from 2026 to 2030. Companies exceeding their emission allowances must purchase credits to cover the excess, leading to fears that a higher NDC target for 2030-2035 could become unsustainable.
While reducing greenhouse gas emissions is a global trend, the significant upward adjustment of the NDC raises concerns about the sustainability of South Korea's industries. The country's contribution to global emissions is 1.4 percent, relatively small on a global scale. In contrast, China and the United States, the two largest emitters, appear less committed to substantial reductions.
Critics also highlight the potential future challenges with increasing electricity demands, particularly in the era of artificial intelligence. AI computing requires substantial electricity, and if South Korea raises its emission reduction targets, nuclear energy could provide a viable solution due to its ability to generate electricity without fossil fuels.
The government remains committed to reducing both greenhouse gas emissions and energy consumption, while exhibiting hesitancy towards nuclear energy and planning for AI infrastructure. This approach has caused public confusion. The Ministry of Climate, Energy and Environment recently pledged to reduce total energy consumption to below current levels by 2029. Meanwhile, the Nuclear Safety and Security Commission has delayed a decision on extending the life of the Kori Nuclear Power Plant Unit No. 2, reflecting the lingering influence of the previous administration's nuclear phase-out policy.
The NDC issue was previously highlighted under the Moon Jae-in administration, which set a 40 percent reduction target for 2030 without thorough feasibility studies, aiming to gain international recognition. The current administration under Lee Jae Myung appears cautious about nuclear energy and is focused on renewable sources, which may not align with South Korea's geographical advantages.
It is suggested that South Korea's NDC goal should be reassessed to a more achievable level before submission to the UN. Should the government proceed with the current targets, a more adaptable stance on nuclear energy might be necessary.