[Asia Exclusive] Ban Ki-moon: "Phasing Out Internal Combustion Engine Cars Is an Opportunity for Industry and Job Creation"

Interview with Ban Ki-moon, Chair of the National Climate and Environment Council
"Internal combustion engine market shrinking... Must read international trends"
Positive response to pursuing climate policy despite economic burdens
Minimize impact on low-income citizens during climate response process

Ban Ki-moon, Chairman of the National Climate and Environment Council, is being interviewed on the 15th at the National Climate and Environment Council in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporters Kang Hee-jong, Kim Bo-kyung] "The climate crisis is like a virus. If someone else's health deteriorates, I cannot be healthy either. If the climate crisis continues, it will affect all of humanity and future generations."

Ban Ki-moon, Chairman of the National Climate and Environment Council, emphasized the urgency of responding to climate change in an interview with Asia Economy on the 15th at the Council's office in Jongno-gu, Seoul, stating, "The international community is united in the opinion that carbon neutrality must be achieved by 2050 by any means."

Recently, South Korea has also seen a wave of change starting with President Moon Jae-in's declaration of carbon neutrality by 2050. The National Assembly increased the budget related to carbon neutrality by 300 billion won for next year, and the government announced a carbon neutrality promotion strategy jointly with related ministries. Chairman Ban expressed gratitude as "a former UN Secretary-General and someone who devoted passion to the Paris Climate Change Agreement," but also urged the government, saying, "It is most important to carry out this transition fairly and without major disruptions."

To achieve carbon neutrality, which means reducing actual carbon emissions to zero, greenhouse gas emissions must be drastically reduced across all sectors including manufacturing, power generation, and transportation. In particular, South Korea has a higher proportion of manufacturing and dependence on fossil fuels compared to major countries, making large-scale innovation inevitable. Chairman Ban reiterated that concerns about the phase-out of internal combustion engine vehicles threatening the domestic automobile industry should be seen as an opportunity to create new industries and jobs, emphasizing that the trend cannot be reversed, and predicted that "climate response will become a major agenda in multilateral diplomacy."

Below is a Q&A with Chairman Ban.

- Please specify support measures for existing industries and jobs such as internal combustion engine vehicles and coal power plants.

▲ South Korea has a high proportion of manufacturing, and its main industries are carbon-intensive sectors such as steel and petrochemicals. The share of coal power generation is about 40%, higher than the US (24%) and Japan (32%). During the carbon neutrality promotion process, certain industries are expected to shrink and existing jobs to decrease. We must consider industry transition, employment stability measures, and regional economic countermeasures to ensure no sectors or groups are left behind. For example, protection should be provided for the automobile industry and workers affected by the transition from internal combustion engine vehicles to eco-friendly vehicles. Regarding energy transition, I suggest considering support measures for coal power companies, workers, and the local economies involved.

- There are concerns that the phase-out of internal combustion engine vehicles could jeopardize the domestic automobile industry.

▲ We must read the international trend. The internal combustion engine vehicle market is gradually shrinking. Norway has declared a ban on internal combustion engine vehicle sales by 2025; Sweden, Denmark, the Netherlands, and India by 2030; and the UK, Germany, and China by 2035. In the future, no matter how many internal combustion engine vehicles we produce, there will be no market to sell them. If the European Union (EU) introduces a carbon border tax, the internal combustion engine vehicle market will lose competitiveness. The transition from internal combustion engine vehicles to hydrogen and electric vehicles can be an opportunity to create new industries and jobs in the automobile parts production sector. Companies must adapt themselves and make efforts to transition to the eco-friendly vehicle industry, and the government should create a roadmap to support this. It may be a difficult process, but if policy efforts such as industry transition for internal combustion engine-related industries and support for parts suppliers are systematically promoted, global competitiveness can be secured.

Ban Ki-moon, Chairman of the National Climate and Environment Council, is being interviewed on the 15th at the National Climate and Environment Council in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

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- The government announced a reform plan for the electricity rate system amid the ongoing COVID-19 pandemic. Is this increasing the burden on ordinary people under the pretext of eco-friendliness?

▲ Even as the economy contracts and the difficulties of ordinary people's lives increase, interest and awareness of the climate crisis are growing day by day. Unprecedented long rainy seasons and changes felt in daily life like COVID-19 are not unrelated to climate change. According to the mid- to long-term policy proposals released by the National Climate and Environment Council, although there were many contents that could cause public burden and inconvenience, about 500 members of the public policy participation group made quite active decisions. 84% agreed to adjust the relative prices of gasoline and diesel, which directly relate to economic burden, and 75% agreed to reflect environmental costs in electricity rates. However, the impact on the ordinary economy must be considered during the climate response process, and the burden should be minimized as much as possible. During the electricity rate system reform process, it is proposed to consider the ripple effects on prices and establish consumer protection measures such as price caps. It is important to try to share the pain and difficulties of the public through consumer protection measures. The plan includes gradually adjusting the relative prices of gasoline and diesel over several years and expanding support for purchasing eco-friendly vehicles. Supplementary measures such as establishing a safety net for automobile industry workers and supporting small freight vehicle operators were also presented.

- What changes are expected when the new climate regime launches next year under the Paris Agreement?

▲ Since 2021 is the year the new climate regime launches, I hope it will be a year when international solidarity is strengthened and multilateralism is restored, including the US rejoining the Paris Agreement. President-elect Joe Biden pledged to rejoin the Paris Agreement immediately after taking office. Biden appointed former Secretary of State John Kerry, who represented the US during the Paris Agreement under the Obama administration, as climate envoy and included him in the National Security Council (NSC). This can be seen as a message that the Biden administration will give high policy priority to climate crisis response at the national security level. The US is expected to strive to restore global leadership while actively demanding allied countries' participation in climate change response. Climate response is expected to become a major topic in multilateral diplomacy.

- Fine dust is rampant again in winter. While domestic efforts to reduce fine dust are important, cooperation with neighboring countries like China is essential.

▲ Northeast Asia is a "breathing community," and fine dust and climate change cannot be solved by the efforts of one country alone. Rather than engaging in mutual blame over the causes of fine dust between Korea and China, efforts should focus on resolving the issue through close cooperation and joint response. The positive point is that China, the largest greenhouse gas emitter, has declared a carbon neutrality goal by 2060. It considers climate change and air pollution issues as policy priorities and is taking active measures. Our government must continue efforts to institutionalize Northeast Asia cooperation. At the international organization level, such as the United Nations Environment Programme (UNEP) and the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), scientific research support on air pollution and the creation of international public opinion on the need for air quality improvement should be promoted.

- Lastly, do you have any words of advice?

▲ There is a shortage of teachers teaching environmental subjects in elementary, middle, and high schools in South Korea. This is because the Ministry of Education designated environment as an elective subject. There are only four universities nationwide with environmental education departments. Since environmental teachers are not hired, graduates of environmental education departments cannot utilize their major and end up working in private companies. In a country that announced carbon neutrality by 2050, there are almost no students formally educated in environmental studies. There is good news that seven environmental teachers will be recruited next year. From Deputy Prime Minister and Minister of Education Yoo Eun-hye to Seoul Metropolitan Office of Education Superintendent Cho Hee-yeon and Sejong City Education Superintendent Choi Kyo-jin, I have met them one-on-one to emphasize the importance of environmental education. Superintendent Choi, who was the chairman of the National Association of Metropolitan and Provincial Education Superintendents, attended the Education Superintendents' meeting held last month in Cheongju and appealed to all 17 superintendents nationwide to designate environmental subjects as mandatory when revising the curriculum.