South Korea’s Ministry of Trade, Industry and Energy has unveiled a public-private forum for domestic companies. The forum will enable domestic companies to adapt according to global green energy regulations.
The Ministry and Korea Chamber of Commerce and Industry (KCCI), a leading business organization in South Korea, believes that the forum will provide a secure and economical energy supply chain. Also, it will help in providing adequate climate change solutions and measures.
The forum will establish a recognizable international energy certification system and also enforce ways of reaching zero-carbon power generation.
RE100, a global corporate renewable energy initiative that brings together hundreds of influential companies committed to 100 percent renewable electricity usage, is popularizing at a sharp rate. The RE100 was established in 2014 by Ingka Group, a Sweden-based home furnishing retailer and Swiss Re, a Swiss reinsurance company. However, the RE100 initiative has led to certain issues for the company’s operations.
For instance, it is difficult for RE100 member companies to procure affordable renewable electricity. The presence of costly renewables increases the production cost and final price of products.
According to the Ministry, RE100 is a great initiative towards achieving sustainability and solving climate change issues. But the limited availability of renewable electricity, lack of procurement opportunities, and heavy expenses make RE100 complex for local companies.
According to RE100, South Korea is a challenging market for purchasing renewable energy. RE100 companies require better renewable electricity options not only across South Korea but Asia as well. Yet, despite the challenges, RE100’s membership is increasing in Asia.
Increasing clean energy demand
The demand for green energy is getting stronger every year. Many governments are giving subsidies to sustainable companies that are carbon emissions-free. In the USA, tax benefits are granted to suppliers that do not produce greenhouse gases.
USA’s Inflation Reduction Act (IRA) of 2022 provides federal funding for clean energy to substantially lower the nation’s carbon emissions. The IRA regulations also restrict tax incentives to certain types of power generation not recognized by the government.
South Korea is working on developing a clean energy and critical minerals supply chain with Canada. Both nations recently signed a deal for increasing economic as well as cultural ties. South Korea and Canada plan to promote eco-friendly technologies and also enhance the global market for zero-emission cars and batteries.
In April this year, South Korea held the 20th International Green Energy Expo in Daegu City. The expo highlighted the nation’s solar energy market size of 2.7 gigawatts (GW) in 2022.