(Yonhap Interview) Transition to renewable energy to bring opportunities for export-oriented S. Korean economy: Climate Group chief
SEOUL, Oct. 30 (Yonhap) -- Expanding the role of green energy sources in South Korea's energy mix will create economic opportunities in both trade and investment, the head of a renewable energy advocacy group said Wednesday.
Helen Clarkson, CEO of the London-based nonprofit Climate Group, made the remark during an interview with Yonhap News Agency in Seoul, noting that South Korea needs to prepare to meet global carbon pricing regulations, including the EU's Carbon Border Adjustment Mechanism (CBAM).
"There's a huge risk if Korea doesn't adapt as quickly as some of its competitors," Clarkson said. "There's CBAM and other carbon pricing systems coming in, and they are on the near horizon."
CBAM imposes import charges equivalent to the carbon emissions generated from the production of steel, cement, electricity, fertilizer, aluminum and other related products.
Clarkson added that adjusting to the global transition toward renewable sources will benefit South Korea by enabling it to maintain shipments to major trading partners while also reducing its reliance on imported energy sources.
The Climate Group CEO added South Korea should also harness more green energy sources, as a growing number of global companies will consider such factors when deciding where to roll out new investments.
"I think we are already seeing companies and others that are committed to, for example, buying green steel, questioning whether they will be able to source it from Korea in the future," she added.
Clarkson cited the example of the Denmark-based Lego Group, which decided to build a factory running on renewable energy in Vietnam.
"I think you are going to see this increasingly, with companies saying we need a site where we can access renewables. That's where Korea might start missing out on some of those opportunities," she said.
Touching on concerns that the booming artificial intelligence industry will inevitably lead to higher energy demand, potentially making renewables a less viable choice, Clarkson noted that major global tech companies, including Microsoft, have already made strides in adopting sustainable energy sources.
"There's no reason why that demand can't be met in significant part by renewable electricity," Clarkson said, adding that AI can actually help countries achieve energy efficiency.
"When you get into things like smart electricity use, smart grids and similar applications, AI is going to be really important there. So, I think we need to recognize that potential," she said.
"I think AI is the latest reason people cite as making the energy transition seem too hard, and I think we need to be realistic about the components of that," she said.
Clarkson added that South Korea needs to consider setting more ambitious targets for its renewable energy blueprint, noting that it still places too much emphasis on fossil fuels and nuclear sources.
In May, South Korea unveiled an energy blueprint extending through 2038, aiming to increase the share of carbon-free energy sources, such as solar and wind, to 32.9 percent of its energy portfolio. This would mark a substantial rise from 7.9 percent in 2023 and the proposed 21.6 percent in 2030.
"It needs to be improved," Clarkson said, emphasizing that the target for carbon-free energy sources still leans too heavily on non-renewable sources.
"Korea is already behind, so it should be coming up with plans focused on catching up and going further," she added, noting that renewable energy sources accounted for only 8 percent of South Korea's energy portfolio in 2022, lagging behind the global average of 13 percent.
colin@yna.co.kr
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