South Korea's government approved a target on Nov. 11 to reduce greenhouse gas emissions by 53-61% from 2018 levels by 2035. President Lee Jae Myung stressed that transitioning to a carbon-neutral society is an inevitable path for sustainable growth. The goal will be officially announced at COP30 in Belem, Brazil.
South Korea's government approved a nationally determined contribution (NDC) target on Nov. 11 to cut greenhouse gas emissions by 53-61% from 2018 levels by 2035 during a Cabinet meeting. This is slightly higher than the initial proposals of 50-60% or 53-60%. The decision, presided over by President Lee Jae Myung, updates the NDC under the Paris Agreement, following the previous 2030 pledge of a 40% reduction from 2018 levels submitted in 2021.
President Lee stated during the meeting, "There is controversy these days regarding the NDC, but the transition to a carbon-neutral society is an inevitable path that we must take for sustainable growth and a leap forward as a global economic power even if that entails some pain." The finalized NDC will be officially unveiled at the 30th United Nations Climate Change Conference (COP30) in Belem, Brazil, running from Nov. 11 to 21.
Experts view the target as presenting both risks and opportunities for businesses. Seoul National University of Science and Technology's Prof. Yoo Seung-hoon warned of significant burdens on key industries like automobiles, steel, petrochemicals, and cement, potentially leading to production cuts or overseas relocations. For instance, steelmakers like POSCO may shift facilities to the US or Southeast Asia due to high costs of hydrogen use, while the cement sector could rely on Chinese imports if domestic operations shut down. The push for eco-friendly vehicles will reduce conventional car production, impacting thousands of auto parts suppliers and petroleum output, including aviation fuel. The semiconductor industry faces indirect hits from expected electricity price hikes amid rising AI energy demands.
KAIST's Prof. Choi Sung-min urged expanding the energy mix, including nuclear power, to ensure stable supply, as renewables alone cannot meet the target by 2035. Pusan National University's Prof. Lee June-yi argued that addressing climate change benefits businesses long-term, positioning South Korea as a low-carbon leader, though government measures are needed to mitigate side effects. A coalition of 14 business lobbies expressed concerns over immature technologies and global uncertainties, calling for support like avoiding electricity rate increases.