[Column] 'Avoiding Coal Power' Similar Yet Different Between Korea and Japan

[Asia Economy Reporter Moon Chaeseok] "We are considering shutting down about 100 aging coal-fired power plants that emit large amounts of carbon dioxide by fiscal year 2030. However, we will support the export of power plants on the condition that the beneficiary countries adopt high-efficiency coal power technology and then proceed with decarbonization or reduce carbon dioxide emissions."

The Japanese government recently announced export principles for coal-fired power plants with this content. The basic stance on coal-fired power generation in the statement is similar to that of Korea. The difference lies in the part after "however." Japan does not outright block coal-fired power plant exports but strengthens standards and supports exports if conditions are met.

Exports are allowed only if the beneficiary country is judged to be one that must inevitably rely on coal-fired power generation for financial reasons and if it reduces carbon emissions or decarbonizes. Unlike Korea, it is hard to find any mention of the political sphere pressuring power producers by enacting laws that ban exports.

Korea’s situation is different. Because the government did not establish clear standards for coal-fired power plant exports, Korea Electric Power Corporation (KEPCO) was branded as the "main culprit of environmental destruction" when it tried to export the Vung Ang 2 power plant to Vietnam. If, like the Japanese government, the government had recognized that coal-fired power plant exports were unavoidable and set strict conditions to reach social consensus, the core decision-making of companies would not have been swayed by politics.

The ruling party, during the National Assembly audit, questioned Minister of Trade, Industry and Energy Sung Yun-mo, KEPCO, and the Korea Trade Insurance Corporation, asking "What’s next after Vietnam’s Vung Ang 2?" and "Will you export in the future or not?" trying to secure a promise to refrain from exports. The minister went to the National Assembly and promised "never to export again," but did not respond with "we will limit the beneficiary countries’ carbon emissions to within a certain percentage based on meticulous standards." Public enterprises only watch cautiously.

Experts say, "If beneficiary countries inevitably rely on coal-fired power generation due to financial and energy supply reasons, a principle allowing exports should be established, but with strengthened efficiency requirements for power plants to minimize greenhouse gas emissions while exporting." We want to see a competent government that formulates sophisticated policies.