Republic of Korea

The Republic of Korea (South Korea) remains at its very low ranking of 63rd, near the bottom of the CCPI. It ranks very low in Energy Use, GHG Emissions, and Renewable Energy, and low in Climate Policy.

Korea planned to announce its 2035 Nationally Determined Contribution (NDC) target by November 2025, considering four scenarios, with emissions reductions of 48%, 53%, 61%, and 65% below 2018 levels. Following a landmark Constitutional Court ruling declaring inadequate climate action unconstitutional, the government is legally required to revise its long-term strategy (2031–2049) by early 2026.

The 11th Basic Plan for Electricity Supply and Demand was released in early 2025, and the fourth Korea Emissions Trading System (K-ETS) allocation plan is expected to be finalised by the end of 2025. However, the CCPI country experts flag a major misalignment with a 1.5°C pathway. The 2050 strategy leans heavily on international offsets and carbon capture utilisation, and storage (CCUS). The 2030 renewable energy target also remains low, and the power plan expands gas capacity and promotes ammonia/hydrogen co-firing despite the probability of fossil-based hydrogen.

Renewables just 8% of the electricity mix, as woody biomass and wood pellet imports encourage environmental harm

The experts note that an oversupply of ETS allowances has depressed the carbon price, as auctioning shares remain low through 2030 and tax relief on gas, diesel, LNG, and coal has repeatedly been expanded. Korea still lacks concrete and enforceable policies to drive implementation, despite the arrival of a more climate-ambitious administration that has introduced new initiatives.

At the same time, Korea established its overarching policy framework, alongside the Offshore Wind Promotion Act and the new government’s pledge to phase out coal by 2040. The administration has announced ambitious initiatives including an ‘energy expressway’ and ‘RE100 Industrial complex.’ However, the lack of enabling mechanisms – especially those needed to expand grid flexibility and integrate renewable energy – means Korea continues to lag, with renewables accounting for just 8% of electricity generation in 2024, greatly undermining industrial decarbonisation.

The experts criticise woody biomass’ outsized role due to past Renewable Energy Certificate (REC) weightings. Woody biomass is the second-largest source of renewable energy in Korea and has grown by 41% over the past 5 years. Domestically, the sourcing of woody biomass causes severe ecosystem destruction due to indiscriminate clear-cutting, including logging after wildfires and excessive extraction of logging residuals. Communities around wood pellet mills and power plants have reported air pollution from NOx and particulate matter. Of the 4.49 million consumed wood pellets, 86.2% are imported, harming the environment in exporter countries, such as Indonesia and Canada, as communities voice the loss of biodiversity, livelihoods, and cultural values, and the increase in land and rights conflicts and exacerbated floods. The experts criticise Korea for blocking OECD discussions for fossil fuel financing restrictions.

1.5°C pathway alignment is needed, with power sector reform and ramping up of renewables

The experts recommend adopting an ambitious NDC above 61%, locking in a rising carbon price under Phase IV of the K-ETS and phasing down free allocations for both the power and industrial sectors to be in aligned with a 1.5°C pathway. They also call for setting a minimum 100 GW renewable energy target by 2030 and establishing a clear timeframe for fossil fuel phase-out. This includes the phase-out of fossil fuel vehicles and supporting and incentivising green steel. The experts also recommend power sector reform, including creation of an independent power system regulator and addressing conflicts of interest where the grid operator also owns fossil fuel generation assets, to scale up renewable energy quickly.

Key Outcomes

CCPI Experts

• Jieon Lee (KlimaNexus)