[Special Carbon Neutral Economy Zone Chungnam] ① Achieving Carbon Neutrality 5 Years Ahead of the Government

Transition to Hydrogen Energy-Based Industrial Structure Instead of Phasing Out Coal-Fired Power Plants
Governor Kim Tae-heum: "We Will Open a New Path to Carbon Neutrality with the Perseverance of Mabujakchim"

Editor's NoteAs Chungnam Province enters the second year since declaring itself a Carbon Neutral Economy Special Province, tangible results are emerging. Chungnam, the top greenhouse gas emitter in South Korea, is leading the way in realizing carbon neutrality with a contrarian strategy of "the last in the school aiming to become first." We explore the achievements and challenges of Chungnam's ambitious '2045 Carbon Neutrality' plan, which aims to achieve carbon neutrality five years ahead of the government's schedule, in a three-part series.

Governor Kim Tae-heum of Chungnam is declaring the Special Province for Carbon Neutral Economy and explaining Chungnam 2045 Carbon Neutrality. / Chungnam Province

October 6, 2022, is regarded as a significant turning point in Chungnam's history. It was the day Chungnam Province became the first in the nation to declare itself a 'Carbon Neutral Economy Special Province' in response to the climate crisis. The province is determined to break free from the dishonor of being South Korea's top greenhouse gas emitter by committing fully to achieving carbon neutrality. This reflects a strong resolve not only to realize carbon neutrality but also to transform the economic and industrial structure to create future growth engines and jobs by turning crisis into opportunity.

According to Chungnam Province on the 5th, in response to the climate crisis, 195 countries worldwide, including South Korea, signed the Paris Agreement in 2016 to achieve carbon neutrality. Accordingly, the government declared '2050 Carbon Neutrality' and is establishing legal and institutional frameworks to promote carbon neutrality. The goal is to reduce greenhouse gas emissions by 40% compared to 2018 levels by 2030 and to achieve 'net zero' domestic emissions by 2050.

South Korea's greenhouse gas emissions increased approximately 2.2 times over 30 years, from 292.1 million tons in 1990 to 656.2 million tons in 2020. Due to the steady increase in emissions, South Korea has been labeled a 'climate villain' in the international community. Chungnam ranks first nationwide in greenhouse gas emissions. This is because it is adjacent to the Seoul metropolitan area with high electricity demand, has easy access to coal imports, and hosts half of the nation's 60 coal-fired power plants (30 plants as of 2020), along with concentrated high-carbon industries such as petrochemicals and steel manufacturing.

Chungnam Greenhouse Gas Emission Outlook / Chungnam Province

In 2020, Chungnam's greenhouse gas emissions amounted to 78.7 million tons, accounting for about 12% of the national total. There are 10 coal-fired power plants each in Taean, Boryeong, and Dangjin. Dangjin City accounted for the largest share of emissions in Chungnam, at 33.8%. In Dangjin, emissions from the energy industry rank among the highest at 39.4%. If current trends continue, the province projects that its greenhouse gas emissions will increase by approximately 24.2% compared to 2018, reaching 2 million tons by 2030.

The province is leading the way to achieve '2045 Carbon Neutrality,' five years ahead of the government's plan, with the ambition that 'if Chungnam fails, national carbon neutrality is impossible.' Under the vision of 'Powerful Chungnam Leading South Korea's Carbon Neutrality,' the goal is to reduce emissions by 40% from 2018 levels by 2030 and achieve carbon neutrality by 2045.

The province has determined that achieving carbon neutrality is difficult without closing coal-fired power plants and plans to gradually shut them down by 2046 in accordance with the government's 10th Basic Plan for Electricity Supply and Demand. Instead, it will promote a transition to a low-carbon industrial structure based on hydrogen energy. This includes installing the world's largest blue hydrogen production facility worth 5 trillion won and creating the world's first 100% hydrogen power plant. Plans also include developing eco-friendly technologies through a hydrogen power special zone utilizing green ammonia and establishing a carbon capture and utilization (CCU) demonstration research facility.

In addition, considering the inevitable population decline, economic contraction, and job losses due to power plant closures, the province plans to establish a Just Energy Transition Fund to ensure a just transition and to promote legislation for special support for coal power plant closure areas.

Governor Kim Tae-heum stated, "Chungnam hosts 50% of South Korea's coal-fired power plants, and high-carbon emission industries account for more than half of the entire industry, making the energy transition and shift to a low-carbon industrial structure urgent." He added, "Since Chungnam accounts for a quarter of the nation's carbon emissions, if Chungnam fails, achieving national carbon neutrality is absolutely impossible."

He further emphasized, "Carbon neutrality requires strong determination and perseverance, like 'sharpening an axe to make a needle,' more than anything else. Chungnam will open a new path to carbon neutrality through greenhouse gas reduction."