South Korean decarbonization: an “extremely ambitious and daunting” project

President Moon Jae-in announces that South Korea will end its dependence on coal by 2050 in favor of renewable energies. Despite challenges such as the construction of new coal-fired power plants, the country is committed to achieving carbon neutrality through a plan that includes measures such as a carbon tax and the rapid electrification of the transport sector.

Share:

President Moon Jae-in has declared that South Korea, which relies heavily on fossil fuels to power its electricity grid, will end its dependence on coal.

South Korea targets 2050 for total decarbonization

President Moon Jae-in made this commitment in a speech to the National Assembly on Wednesday October 28.

He said the East Asian country relies heavily on fossil fuels to power its electricity grid. The aim is to end the country’s dependence on coal before 2050, and to begin the process of decarbonizing the country. Fossil fuels will be replaced by renewable energies as part of the Green New Deal announced last July, making it possible to achieve carbon neutrality.

South Korea’s commitment has followed in the footsteps of neighboring Japan. On Monday October 26, Prime Minister Yoshihide Suga also announced his ambition of carbon neutrality by 2050.

UN Secretary General “very encouraging” about South Korea’s decarbonization process

According to energy researcher Wood Mackenzie, the two countries have a similar fuel mix. In fact, this blend accounts for 80% of hydrocarbons in their primary energy supply. Nuclear and renewable energies account for 15% and 2% respectively.

Speaking of South Korea and Japan’s net zero commitments, Prakash Sharma, Wood Mackenzie’s Head of Markets and Transitions for Asia-Pacific, said the targets are “extremely ambitious and daunting”. While South Korea – the world’s seventh biggest polluter – plans to phase out nuclear power and shut down coal-fired plants in the long term, Sharma said the timetable is “unclear”.

He adds:

“This means that deep decarbonization in South Korea will rely on faster adoption of new technologies. LNG is likely to play a crucial role in South Korea’s transition.”

South Korean decarbonization
Stéphane Dujarric, spokesman for the UN Secretary-General © Anadolu Agency

Stéphane Dujarric, spokesman for the UN Secretary-General, reacted to the South Korean announcement:

“This is a very positive announcement. South Korea is on the right track after the announcement, last July, of Korea’s exemplary new green pact. The Republic of Korea is the world’s 11th largest economy and 6th largest exporter. With this announcement, it joins a growing group of major economies that have pledged to lead by example in building a sustainable, carbon-neutral and climate-resilient world by 2050.”

Renewable energies as a substitute for decarbonizing coal

This commitment places South Korea among a number of countries that have pledged to achieve total decarbonization by 2050. In September, China – the world’s biggest polluter – set a target date of 2060. President Moon’s announcement comes after his party put forward a proposal in April to commit to total decarbonization.

In his speech to the National Assembly, President Moon said, “The government has pushed for firm policies to transform energy sources so far, but we still need to improve many things.”

“We will move towards total decarbonization by 2050, taking action to combat climate change. We will replace coal power with renewables, creating new markets and industries, as well as jobs.”

Kim Joo-jin, CEO of Climate Solutions, declared that this commitment finally brings South Korea closer to the path compatible with the objectives set out in the Paris Agreement. It’s an international climate pact that aims to limit the rise in global temperatures to “well below” 2°C by 2100.

“However, there is much to be done to make this declaration truly meaningful. The most urgent tasks are to improve its 2030 emissions reduction target. The aim is also to present a clear roadmap for phasing out coal by 2030 and to put a complete end to coal financing.”

Coal is currently the main resource used in South Korea’s power supply. It accounts for around 40% of the country’s total energy mix. In addition, seven new coal-fired power plants are still under construction, which will inevitably make the decarbonization challenge a little more difficult.

 

South Korean decarbonization
Honam power plant, South Korea’s oldest coal-fired power station (source: Yonhap).

However, South Korea’s New Deal, financed to the tune of 7 billion euros, will introduce various measures to help the country achieve carbon neutrality. Such as the carbon tax or the end of funding for coal-fired power plants. Charging stations for electric vehicles and hydrogen will also be installed to support this emerging transition.

Emissions trading scheme offers “advantage” to South Korea South Korea

Wood Mackenzie detailed a model scenario that would enable South Korea to achieve total decarbonization over the next 30 years. In this scenario, electrification would develop rapidly and be increasingly powered by renewable energies, battery storage, hydrogen and carbon, CO2 capture and storage (CCUS). Wood Mackenzie also forecasts that the transport sector will be entirely decarbonized by 2050, using electric and fuel cell vehicles. While the share of hydrocarbons is set to fall to around 40% by 2050.

“South Korea has already set up an emissions trading scheme.

“This is an important mechanism for making the changes required in the electricity and industrial sectors, on a cost and carbon basis, to achieve net zero emissions.”

“The price of carbon in South Korea is currently around 20 euros per tonne. We expect it to rise to more than 75 euros per tonne.”

South Korea joins the list of countries complying with the Paris agreements with a structured plan that will certainly enable it to achieve its targets by 2050.

Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.