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Begin New Search Topic Paris Agreement Political Geography South Korea

1. Paris Agreement Article 6 and Implications for Korea’s NDC Implementation

Author:
Jione Jung
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Korea plans to use voluntary cooperation under Article 6 of the Paris Agreement as a complementary measure to its domestic mitigation efforts. There is an urgent need to establish a plan to promote international emission reduction and to prepare specific implementation measures. The government needs to play a role in securing funding and providing support for international emissions reduction projects, as well as establishing laws and regulations to promote emissions reduction activities abroad.
Topic:
Climate Change, Law, Regulation, Carbon Emissions, and Paris Agreement
Political Geography:
Asia and South Korea

2. Carbon Border Adjustment Mechanisms, Carbon Pricing Policy, and the Inflation Reduction Act

Author:
Alistair Ritchie and Yi Chen
Publication Date:
08-2023
Content Type:
Special Report
Institution:
Asia Society
Abstract:
As Korea seeks to achieve a 40% reduction in greenhouse gas (GHG) emissions from 2018 levels by 2030 to meet its Nationally Determined Contribution (NDC) under the Paris Agreement, significant climate policy developments are taking place in the European Union (EU) and United States (U.S.). The EU Emissions Trading System (EU ETS) continues to advance and is aiming to achieve a 62% reduction in GHG emissions from 2005 levels by 2030, in combination with implementation of the EU Carbon Border Adjustment Mechanism (CBAM). The United States is actively considering its own CBAM policy and has triggered massive investment in clean energy technology through the Inflation Reduction Act (IRA). The Asia Society Policy Institute (ASPI), with the generous support of the Korea Foundation, organized a study tour to the EU and the U.S. in which seven young Korean leaders in climate and energy policy participated in meetings and networking events in July 2023. The project was aimed at equipping the participants with knowledge, insights, and networks to understand the implications of EU and U.S. policies related to ETS, CBAM, and broader climate and energy policies, and to help them in developing strategies to align its K-ETS with more ambitious emission targets, comply with EU's CBAM, and implement emission reduction technologies to meet its NDC and net zero goals. This summary report presents key learning points from the study tour to support Korea in achieving its GHG emission targets and responding to evolving trends in EU and U.S. climate policies.
Topic:
Climate Change, European Union, Carbon Emissions, and Paris Agreement
Political Geography:
Asia and South Korea

3. Developing Effective Benchmark-Based Allocation for Industrial Sectors: The Case of the Korean ETS

Author:
Dong-Hyeok Kwon and Alistair Ritchie
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
Emissions trading systems (ETS) are increasingly being introduced as a way of cost-effectively reducing greenhouse gas emissions to meet ambitious national climate change targets, including Nationally Determined Contributions and net-zero long-term goals under the Paris Agreement. A key concern for governments and industry, however, is how to protect industry’s global competitiveness and prevent “carbon leakage”, that is, the transfer of production to world regions with less ambitious climate policies that would lead to an increase in total emissions. To address this concern, ETS allowances are typically allocated for free to greenhouse gas (GHG)-intensive or trade-intensive industries at risk of carbon leakage. The type of free allocation design is important because it directly impacts on the financial performance of companies. It also determines how companies are rewarded. Those that have invested more in GHG reduction technologies will be rewarded better under a benchmark (BM)-based allocation approach, where allocation is based on the level of production multiplied by an emissions intensity benchmark. Those that have invested less in such technologies will be rewarded better under a grandfathered approach, where allocation is based on historic emissions. However, while BM-based allocation is generally regarded as a fairer method, it is also considered more difficult to design and implement. This Asia Society Policy Institute issue paper, Developing Effective Benchmark-Based Allocation for Industrial Sectors: The Case of the Korean ETS, shows how BM-based allocation has been successfully implemented for some of Korea’s most important industrial sectors, steel and petrochemicals. It provides valuable insights and recommendations for other countries to develop an effective allocation system in a timely and efficient way.
Topic:
Climate Change, Trade, Carbon Emissions, and Paris Agreement
Political Geography:
Asia, South Korea, and Korea

4. Increasing Global Climate Ambition and Implications for Korea

Author:
Jinyoung Moon, Soo Hyun Oh, Youngseok Park, Sunghee Lee, and Eunmi Kim
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the adoption of the Paris Agreement, wider and decisive actions to tackle climate change and reduce greenhouse gas (GHG) emissions have been called for in the international community. Many countries are seeking a sustainable economic recovery plan that reflects climate change and environmental considerations. The private sector has also been trying to expand environmentally sustainable investments and disclose relevant information on climate change. In particular, major GHG emitters such as China, the United States (U.S.), European Union (EU), Japan and Korea have pledged to move forward carbon neutrality. For this goal, the EU has established action plans for the European Green Deal, including a plan for introducing a Carbon Border Adjustment Mechanism (CBAM). In this context, this study aims to propose policy recommendations for Korea by analyzing measures to strengthen reduction targets and the economic impact of the EU's CBAM. The following implications can be derived. First, it is necessary to support low-carbon transition efforts in industries. Second, it is also important to support low-carbon technological innovation. Third, monitoring and response measures for the CBAM should also be prepared. Fourth, the private sector should expand voluntary efforts to reduce emissions and environmentally sustainable investment. Lastly, it is necessary to actively engage in international cooperation, not only in terms of reducing GHG emissions but also responding to climate change.
Topic:
Climate Change, Environment, Science and Technology, Sustainability, Carbon Emissions, and Paris Agreement
Political Geography:
Asia and South Korea