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Charting South Korea’s Net-Zero Future: Policy, Corporate Action, and Community Resilience

General Report April 26, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Current Emissions Landscape in South Korea
  3. Government-Led Measures for Emission Reduction
  4. Role of Businesses in Driving Decarbonization
  5. Protecting Vulnerable Communities: Health and Resilience
  6. Conclusion

1. Summary

  • As of April 26, 2025, South Korea finds itself at a pivotal crossroads in its climate journey, marked by urgent demands for action against rising emissions and environmental challenges. A significant increase in carbon emissions from forest fires, reaching approximately 2, 345, 182 tons, signals an alarming trend that nearly doubles the total emissions from 2024. Such a spike highlights the profound impact of climate change on the frequency and intensity of wildfires, necessitating immediate and robust responses. Concurrently, the country grapples with stagnation evidenced by a GDP growth rate of only 0.1% across four consecutive quarters, revealing structural issues that hamper domestic consumption. As consumption trends fall from 56.3% of GDP in 2002 to merely 47.1% in 2025, these economic factors compound the urgency of addressing greenhouse gas emissions and enhancing consumer resilience. Additionally, sectoral analyses show that energy production remains South Korea's dominant source of emissions, primarily stemming from the ongoing reliance on fossil fuels, particularly coal and natural gas. With a renewed commitment to net-zero targets by 2050, there is a pressing necessity for sector-specific reforms and technological innovations to mitigate emissions amidst economic turbulence. South Korea's current climate strategy revolves around enhancing the synergy between governmental measures, corporate accountability, and community resilience.

  • The South Korean government has recently committed to implementing a comprehensive carbon pricing system designed to address excessive emissions and align the local economy with global standards for sustainability. This initiative comes at a critical moment, reflecting the need for transformative measures that not only uphold the environment but also foster economic resilience against looming international trade pressures. Furthermore, the ongoing establishment of the South Korea–Europe Green Shipping Corridor is projected to significantly cut carbon emissions in shipping by over 70%, representing a crucial step towards maritime decarbonization and illustrating the potential for public-private collaboration. On the renewable energy front, the expansion of investment in solar and wind power is crucial in achieving energy security and facilitating a shift away from carbon-intensive sources. As South Korea's journey progresses, it is imperative for all sectors—government, business, and communities—to unite in their efforts to meet the net-zero ambitions while addressing the systemic vulnerabilities faced by the nation.

2. Current Emissions Landscape in South Korea

  • 2-1. Forest Fire Emissions Surge

  • As of late March 2025, South Korea has experienced a significant increase in carbon dioxide emissions from forest fires, with released emissions reaching approximately 2, 345, 182 tons. This figure represents a dramatic rise, nearly doubling the total emissions reported in 2024, which stood at 1, 335, 848 tons. This surge raises urgent climate concerns, as experts warn of a potential feedback loop in which climate change exacerbates the frequency and intensity of wildfires, while forest fires further diminish the capacity of forests to sequester carbon dioxide through photosynthesis. The recent outbreaks, particularly in North Gyeongsang Province, were linked to atypical climatic conditions, including increased temperatures averaging 13.3 degrees Celsius—5.3 degrees above the 30-year average—and reduced humidity. Such conditions are believed to have contributed to both the scale and duration of the fires, prompting calls from experts for enhanced monitoring and management of fire-prone areas.

  • 2-2. Stagnant Economic Growth and Consumption Patterns

  • Recent analyses reveal that South Korea's economy is grappling with stagnation, marked by a GDP growth rate of just 0.1% over four consecutive quarters, culminating in a 0.2% decline in the first quarter of 2025. This economic slowdown is closely tied to a protracted decline in domestic consumption, which is projected to continue due to entrenched structural challenges. Factors contributing to this decline include a rapidly aging population—where individuals aged 65 and older now account for 20% of the demographic—and shifts in consumer behavior, particularly as older adults exhibit reduced spending propensity. Between 2002 and 2021, consumption's share of GDP fell from 56.3% to 47.1%, compelling many households to tighten their spending in light of increasing household debt and rising loan delinquency rates, particularly among self-employed individuals. Market analysts suggest that overcoming these challenges will require systemic reforms aimed at revitalizing domestic consumption and fostering a more resilient economic environment.

  • 2-3. Sectoral Emissions Overview

  • In evaluating the current emissions landscape, it’s critical to understand the sectoral contributions to South Korea's overall greenhouse gas emissions. Notably, carbon emissions from energy production remain the dominant source, predominantly attributed to heavy reliance on fossil fuels, particularly coal and natural gas. The manufacturing sector, especially industries such as steel and petrochemicals, also significantly contributes to national emissions, raising concerns about these sectors' resilience in an increasingly carbon-constrained world. The urgency to address these emissions is underscored by recent commitments to pursue net-zero targets by 2050. Furthermore, ongoing discussions highlight the pivotal roles of energy diversification and investment in technological innovation to mitigate the impacts of climate change while striving for economic recovery. As South Korea navigates these turbulent economic waters strained by stagnant growth, reinvigorating sectoral strategies that prioritize sustainability is essential for effectively reducing emissions.

3. Government-Led Measures for Emission Reduction

  • 3-1. Implementation of Carbon Pricing

  • As of April 2025, the South Korean government has committed to rolling out a carbon pricing system aimed at mitigating emissions across various sectors. This initiative is seen as a crucial measure to prevent high-carbon-emitting industries from facing increased economic pressure, particularly from international trade tariffs influenced by U.S. climate policies. The emphasis on carbon pricing reflects a broader strategy to align domestic economic practices with global standards for sustainability, enhancing South Korea's competitive edge in an ever-evolving carbon conscious market.

  • The implementation of carbon pricing is expected to incentivize reductions in greenhouse gas emissions by making it financially disadvantageous to engage in high-carbon practices. Preliminary discussions and policy frameworks have indicated the consideration of regulatory measures similar to the European Union's Carbon Border Adjustment Mechanism. This would facilitate a level playing field for local industries against foreign competitors, fostering a transition toward low-carbon technologies and sustainable practices. The Korean government has highlighted the integration of domestic resources and collaboration with stakeholders across sectors—including small and medium enterprises—as key aspects of this transition, which aims to bolster resilience in the face of climate-related challenges.

  • 3-2. South Korea–Europe Green Shipping Corridor

  • The South Korea–Europe Green Shipping Corridor (GSC) initiative is an ambitious project currently underway, poised to significantly reduce carbon emissions along critical maritime trade routes. According to a recent report from Solutions for Our Climate (SFOC), this proposed corridor could reduce carbon emissions by over 70% between Pyeongtaek Port and major European hubs such as Bremerhaven and Antwerp. This reduction highlights the potential of maritime decarbonization to contribute meaningfully to South Korea's overall emission reduction goals.

  • Central to the GSC is the establishment of a collaborative framework involving both public and private sectors, with critical input expected from shipping companies, fuel suppliers, and investors. The initiative aims to leverage green methanol as a low-carbon fuel alternative, significantly curbing emissions associated with conventional marine fuels. The strategic choice of Pyeongtaek Port as a launch point for this corridor underscores its importance in South Korea's automotive export industry and its role in maritime logistics. In conjunction with similar initiatives, such as the recently announced green shipping corridor between South Korea and Australia, the Korea-Europe GSC illustrates a multifaceted approach to achieving net-zero emissions in the international shipping sector.

  • 3-3. Expanding Renewable Energy and Energy Security Goals

  • In light of South Korea's increasing energy demands and its commitments under international climate agreements, the government is actively expanding its renewable energy targets and energy security initiatives. A significant aspect of this effort involves fostering investments in solar and wind energy production to diversify energy sources away from fossil fuels and enhance resilience against global energy market fluctuations.

  • The renewable energy expansion plan is underpinned by a series of policies aimed at ensuring stable energy provision while decreasing dependence on carbon-intensive energy sources. As evidenced by the government's strategies, achieving energy security is viewed as pivotal not only for economic stability but also for ensuring a transition toward a sustainable energy future. These ambitious targets reflect South Korea's recognition of the need for a holistic approach to energy management, integrating innovation in renewable technologies and encouraging public-private partnerships to drive progress.

4. Role of Businesses in Driving Decarbonization

  • 4-1. Sustainable Logistics and Low-Carbon Transport

  • As of April 26, 2025, businesses around the globe, including those in South Korea, are increasingly prioritizing sustainable logistics and low-carbon transport strategies to combat climate change. The transport sector is identified as a major contributor to greenhouse gas emissions, and its decarbonization is crucial for achieving national and international climate goals. Recent reports, including one from the organization Solutions for Our Climate (SFOC), highlight initiatives aimed at creating green shipping corridors that promise to cut carbon emissions significantly. For instance, the proposed South Korea–Europe Green Shipping Corridor could achieve a reduction of over 70% in carbon emissions along key trade routes, setting an industry standard for low-emission shipping practices. This corridor not only aligns with South Korea's broader Greanship-K Program that aims to phase out greenhouse gas emissions from shipping by 2050, but also exemplifies how businesses can collaborate on innovative transport solutions that meet global decarbonization targets.

  • Furthermore, electrification of transport modes is gaining traction, particularly with the rise of electric vehicles (EVs). Reports underscore the potential of EVs to revolutionize transportation, thereby minimizing reliance on fossil fuels and significantly lowering greenhouse gas emissions. The transition towards electric mobility is supported by global initiatives, including UNEP’s Electric Mobility Programme, which aims to assist low and middle-income countries in enhancing their electric mobility infrastructure. This not only mitigates health risks associated with vehicle emissions but also improves air quality, ultimately facilitating a shift towards a sustainable energy ecosystem.

  • 4-2. Corporate Responsibility and Climate Strategies

  • The role of corporate responsibility in driving decarbonization efforts is becoming increasingly evident as businesses embrace environmental sustainability as a core tenet of their operations. Corporations are not only recognizing their environmental impacts but also actively engaging in initiatives that contribute to climate action. A recent interview highlighting EY Global Delivery Services’ (EY GDS) commitment to environmental sustainability indicates that businesses can lead by example through strategic partnerships and community engagement in conservation efforts. Initiatives like wetland conservation and urban tree plantation projects illustrate how corporate actions can translate into tangible environmental benefits, raising awareness and inspiring employees to participate in sustainable practices.

  • Moreover, leading companies are setting ambitious sustainability targets, aiming for significant reductions in their carbon footprints. For instance, EY GDS's corporate responsibility program, EY Ripples, is designed to promote environmental stewardship and engage employees in sustainability initiatives. These efforts not only reflect the organization’s commitment to addressing urgent environmental challenges but also demonstrate the potential of corporate strategies to influence long-term social and environmental outcomes. When businesses integrate sustainability into their operational practices, they ensure that climate strategies are aligned not just with corporate goals but also with the broader objectives of societal resilience and environmental health.

  • 4-3. Innovation in Green Supply Chains

  • In today's business landscape, innovation in green supply chains is pivotal to achieving decarbonization goals. As companies strive for efficiency and sustainability, the adoption of eco-friendly logistics practices and the integration of sustainable materials into production processes are becoming increasingly imperative. Research indicates that organizations implementing green supply chain practices not only enhance their operational efficiency but also reduce their overall environmental impact. The focus on low-carbon technologies and practices can be seen in multiple sectors, from manufacturing to logistics, as businesses seek to lower emissions across their value chains.

  • The exploration of alternative fuels, such as green methanol, is highlighted in the context of South Korea’s proposed green shipping corridors, which stand to significantly reduce emissions from maritime transport. By transitioning to innovative fuel sources and employing sustainable logistical practices, businesses can create a competitive edge while contributing to the global effort towards carbon neutrality. Additionally, collaboration among businesses, non-governmental organizations, and governmental bodies is essential in fostering systemic changes that support green supply chains, ensuring that investments in sustainability translate into broader environmental benefits.

5. Protecting Vulnerable Communities: Health and Resilience

  • 5-1. Health Risks from Rising Forest-Fire Emissions

  • As of late March 2025, South Korea is experiencing significant health risks associated with a surge in forest-fire emissions. Notably, emissions from forest fires nearly doubled compared to the previous year, reaching 2, 345, 182 tons of carbon dioxide. This is approximately 1.8 times higher than the total emissions recorded in 2024. The Korea Meteorological Administration highlights that climatic conditions, such as increased temperatures and lower humidity, facilitated the scale and duration of these wildfires, exacerbating public health concerns. Rising air pollution levels due to particulate matter and greenhouse gases can lead to respiratory and cardiovascular diseases among affected populations, particularly in vulnerable communities. As forests burn, their carbon-storing capacity diminishes, releasing additional carbon dioxide into the atmosphere and contributing to a feedback loop of worsening climate conditions, leading to more frequent and severe wildfires in the future.

  • 5-2. Economic and Social Impacts of Climate Extremes

  • The economic and social ramifications of climate extremes, particularly wildfires, are increasingly palpable across South Korea. Climate change not only poses a direct threat to physical health but also disrupts agricultural productivity and poses risks to food security. For instance, climate-induced weather fluctuations have already hit staple crops and livestock feed supplies critical for households, raising prices for key food items such as pork and coffee. A recent opinion piece highlights that the wholesale price of Arabica coffee beans, a staple in many South Korean diets, has more than doubled due to a combination of adverse weather conditions in producing countries. This situation illustrates how climate extremes can create financial strain on households from increased food costs, particularly impacting those belonging to economically disadvantaged demographics.

  • 5-3. Equitable Adaptation and Community Support

  • In light of these mounting challenges, equitable adaptation strategies must be implemented to safeguard vulnerable communities. Community support initiatives that prioritize accessibility to resources and services for those most at risk, such as low-income households and elderly individuals, are essential for building resilience. Policymakers need to incorporate inclusive frameworks that address not only immediate relief efforts but also long-term adaptations—such as infrastructure improvements and educational programs—that empower communities to respond effectively to climate-related shocks. Moreover, the establishment of monitoring and early-warning systems in fire-prone areas can facilitate timely interventions, potentially mitigating the adverse effects of climate extremes. An emphasis on community engagement and participation in creating climate action plans will help ensure that the voices of marginalized populations are heard, fostering collective resilience against the ongoing and predicted climate challenges.

Conclusion

  • In summary, South Korea’s trajectory towards a net-zero future hinges on a multifaceted and coordinated approach, incorporating the collaborative efforts of government, businesses, and communities. The implementation of a rigorous carbon pricing framework remains essential, as it can catalyze critical changes across various sectors while aligning domestic practices with international sustainability standards. Additionally, innovative initiatives—such as the South Korea–Europe Green Shipping Corridor—demonstrate the potential of maritime decarbonization to contribute significantly to overall emission reduction goals. Looking ahead, the expansion of renewable energy sources must accelerate to fortify energy security and meet the demands of a transitioning global market.

  • Equally important is the commitment to protecting vulnerable communities that bear the brunt of climate extremes. Developing adaptive infrastructure and delivering targeted support for those at greatest risk, including low-income households and elderly individuals, is crucial in fostering resilience as climate impacts multiply. To effectively tackle climate challenges, stakeholders must promote inclusive strategies, ensuring that marginalized voices guide the creation of climate action plans. Ultimately, these collective efforts can transform ambitious climate goals into concrete achievements, paving the way for a healthier, more equitable future in South Korea, where the balance between environmental sustainability and economic viability is maintained.

Glossary

  • Carbon Pricing: A market-based approach designed to reduce greenhouse gas emissions by assigning a cost to carbon emissions, thus encouraging businesses to lower their carbon footprint. As of April 2025, South Korea is implementing a comprehensive carbon pricing system to align with global sustainability standards.
  • Green Shipping Corridor: An initiative aimed at reducing carbon emissions in maritime transport. The South Korea–Europe Green Shipping Corridor is expected to cut emissions by over 70% between major ports, showcasing the potential for collaborative solutions in maritime decarbonization as of April 2025.
  • Decarbonization: The process of reducing carbon dioxide emissions associated with various sectors, particularly energy production and transportation, to combat climate change. South Korea's ongoing commitment to net-zero targets by 2050 underscores the necessity of effective decarbonization strategies.
  • Renewable Energy: Energy derived from resources that are replenished naturally, such as solar and wind power. As of April 2025, South Korea is actively expanding investment in renewable energy to enhance energy security and transition away from fossil fuels.
  • Forest Fires: Uncontrolled wildfires that release significant amounts of carbon dioxide and other pollutants. South Korea experienced a surge in emissions from forest fires as of March 2025, raising urgent public health concerns and highlighting the impacts of climate change.
  • Sustainable Transportation: Transportation methods that aim to minimize environmental impact, reduce carbon emissions, and enhance energy efficiency. The push for low-carbon transport solutions, including electric vehicles, is gaining momentum in South Korea as of April 2025.
  • Corporate Responsibility: The commitment of businesses to conduct their operations ethically and sustainably, prioritizing environmental and social considerations. Corporate responsibility efforts are becoming crucial in South Korea's strategy for climate action as of April 2025.
  • Climate Adaptation: Strategies designed to adjust to the impacts of climate change, reducing vulnerability, and enhancing resilience among communities. As of April 2025, adapting to climate extremes, including wildfires, is essential for safeguarding vulnerable populations in South Korea.
  • Vulnerable Communities: Groups at higher risk of suffering from climate change impacts, including low-income households and elderly individuals. Addressing the needs of these populations is critical to building resilience against climate-related challenges in South Korea.
  • Energy Security: The uninterrupted availability of energy sources at an affordable price. South Korea's efforts to expand renewable energy are part of a broader strategy to enhance energy security as it transitions away from fossil fuels amid fluctuating global markets.
  • Emission Reduction Goals: Targets set by governments and organizations to decrease greenhouse gas emissions over a specified period. South Korea’s ambitious goal to achieve net-zero emissions by 2050 reflects its commitment to climate action and global sustainability efforts.

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