Transition to Renewable Energy Opens New Doors for South Korea’s Export-Driven Economy.

Seoul: 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). According to Yonhap News Agency, Clarkson highlighted the risks South Korea faces if it does not adapt as quickly as its global competitors. "There's CBAM and other carbon pricing systems coming in, and they are on the near horizon," Clarkson stated. The CBAM imposes import charges equivalent to the carbon emissions generated from the production of steel, cement, electricity, fertilizer, aluminum, and other related products. Clarkson further emphasized that transitioning to renewable sources will benefit South Korea by enabling it to maintain shipments to major trading partners while reducing its reliance on imported energy. The Climate Group CEO urged South Korea to harness more green energy sources, as a growing number of global companies are factoring in sustainability when deciding on new investments. She pointed out that companies committed to buying green steel, for example, are questioning whether they will be able to source it from Korea in the future. Clarkson cited Denmark-based Lego Group, which opted to build a factory running on renewable energy in Vietnam, as a case in point. "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 concluded.