By Tng Yong Li

March 22, 2023 - South Korea has released its blueprint for achieving carbon neutrality by 2050 and realising "green" growth, with plans to cut coal power generation while boosting nuclear and renewable output.

Firstly, the country aims to cut coal-fired power generation while expanding nuclear and renewable energy, trade and industry ministry (Motie) said on 21 March. South Korea sees the share of nuclear power generation in its energy mix rising from 27.4pc in 2021 to 32.4pc in 2030, with the share of renewable energy rising from 7.5pc in 2021 to 21.6pc in 2030.

This comes on the back of recently-tightened coal burn restrictions in the country, which are set to weigh on coal-fired power generation and support nuclear power output in March. South Korea's overall coal-fired power availability was 27.3GW in February, down by 10.5pc on the year, based on power plant maintenance schedules from the Korea Power Exchange (KPX). Availability is set at 22.4GW in March, lower on the month but only 1pc below the 2019-2022 March average. But the country's nuclear power output is set to be at 20.1GW this month, up by 8pc on the year, Argus' analysis of state-controlled operator Korea Hydro and Nuclear Power's data show.

Secondly, it hopes to promote eco-friendly transportation across land, sea and air. South Korea will do this by expanding the use of electric and hydrogen vehicles, as well as converting all diesel-fuelled trains to electric trains. South Korea aims to raise the total number of registered zero-emission vehicles from 430,000 units, or 1.7pc of all vehicles, in 2022 to 4.5mn units or a 16.7pc share in 2030.

Thirdly, South Korea continues striving to develop its hydrogen industry by expanding the scope of hydrogen utilisation. It predicts that the number of hydrogen vehicles will rise from 29,733 in 2022 to 300,000 units by 2030, with the proportion of clean hydrogen power generation at 2.1pc in 2030 from 0pc in 2022.

The government will invest about 89.9 trillion South Korean won ($68.7bn) over the next five years from 2023-2027 so that the policy tasks can be effectively implemented. Of this amount, W54.6 trillion will be allocated for a budget for GHG reduction projects, including subsidy support for EVs and hydrogen vehicles, and W6.5 trillion in "green industry growth".

Revised Emission Reduction Targets

The country adjusted its greenhouse gas (GHG) reduction targets, while keeping its target of cutting emissions by 40pc from 2018 levels by 2030.

The industrial sector's revised emission target is now at 230.7mn t of CO2 equivalent (CO2e) by 2030, down by 11.4pc from 2018 levels, according to Motie. This is compared with the previous target of 222.6mn t, or a 14.5pc reduction from 2018 levels. These revisions were made in light of domestic factors such as raw material supply and demand, as well as technology prospects.

This downward revision came on the back of Motie's announcement on 13 March that the 2030 nationally determined contribution set by the previous government was "unachievable". The domestic industrial sector suggested then that the target needs to be adjusted, with the sector only able to achieve a 5pc cut by 2030, according to Motie. This remains notably below the government's revised cut of 11.4pc.

The country in February also outlined a strategy to utilise technology to achieve carbon neutrality in the industrial sector, with an aim to cut 120mn t of GHG emissions by 2050.

The hydrogen industry's revised emission target also rose to 8.4mn t from the previous 7.6mn t, because of an expected increase in blue hydrogen supply.

But South Korea aims to offset the aforementioned increases in emissions with greater emission cuts in other sectors. The country revised the emission target for the renewable energy sector to 145.9mn t, an enhanced cut of 45.9pc by 2030 from 2018 levels. This was higher than the previous targeted cut of 44.4pc, or a further cut of 4mn t of CO2e. The country also expects to cut 11.2mn t through carbon capture, utilisation and storage by 2030, up from the previous 10.3mn t, and raised international reductions to 37.5mn t from 33.5mn t.