South Korea can do more to achieve net-zero goal: IEA

South Korea's energy transition must go beyond the power sector to target emissions from industry and transport, according to a policy review by the IEA.

The industrial sector is emissions intensive and accounts for more than half of South Korea's final energy consumption, while progress in the transport sector is lagging behind government targets despite well-established fuel economy standards for passenger vehicles, the Paris-based IEA said.

"Korea has set ambitious goals for the rollout of electric mobility and also to establish itself as a leading exporter of hydrogen and fuel cell vehicles by 2040… but Korea also needs to reappraise the role public transport could play in the future," it said.

South Korea was the first country in northeast Asia to introduce a nationwide emissions trading system (ETS) in 2015, setting a best practice example for other countries in the region, the IEA said. But emissions were down by only 2pc in all ETS sectors in 2019, reflecting South Korea's high dependence on coal-fired power generation.

The country last month pledged to achieve carbon neutrality by 2050 , building on goals laid out in its "green new deal" earlier this year. The pledge includes replacing coal-fired power generation with renewable alternatives.

"Plans by the government to close ageing coal-fired plants reflect growing concerns among the population over climate change and local air pollution. The government can draw on this public support to swiftly introduce its planned environmentally friendly energy tax programme that will complement other policy measures," the IEA said.

Seasonal measures to control fine dust and particulate emissions from South Korea's power, transportation and industrial sectors were also enacted as law earlier this year, following their implementation for the first time last winter.

"Many of these measures will help Korea not only to advance its energy transition but also to improve its energy security, a high priority given the country's limited domestic energy production," said the IEA's executive director Fatih Birol.

South Korea is a major importer of LNG and coal and one of Asia's biggest oil refining and petrochemical hubs. In 2019 oil made up 43pc of South Korea's energy consumption, coal accounted for 28pc, gas 16pc and 10pc came from nuclear, data from BP's Statistical Review of World Energy show.

The country's share of electricity generated from variable renewable sources was just under 4pc in 2018, far from the 20pc and 30-35pc shares it envisioned for itself in 2030 and 2040 respectively. South Korea will need a resilient and much more flexible electricity system to accommodate variable and decentralised renewables, the IEA said.

It also recommended elevating the status of South Korea's electricity regulatory commission as the regulator of the electric power industry from its largely advisory role currently and adopting a carbon-based tax scheme.

By Subethira Ahrumugam

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