[Special Carbon Neutral Economy Province Chungnam] ③ Challenges in Spreading Just Transition and Practical Movements

Support Needed for Areas Affected by Coal Power Plant Closures
Expansion Beyond Hydrogen to Solar and Wind Power and Establishing a Culture of Carbon Neutrality Practices

Editor's NoteAs Chungnam Province enters the second year since declaring itself a Special Carbon Neutral Economy 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 will become first." This three-part series explores 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.

Securing renewable energy is essential for carbon neutrality in the upcoming era of climate crisis. To this end, Chungnam Province is gradually phasing out coal-fired power plants and presenting a roadmap for transitioning to renewable energy. However, just transition to minimize damage to the local economy during the transition and securing the renewable energy industry remain challenges.

According to Chungnam Province on the 7th, under the government's carbon neutrality policy, 30 coal-fired power plants reaching their 30-year lifespan will be closed by 2034, and 24 of these are planned to be converted to LNG power generation. The 10th Basic Plan for Electricity Supply and Demand includes Boryeong Units 1 and 2, which were closed in 2020, as well as Taean Units 1 to 6, Dangjin Units 1 to 6, and Boryeong Units 5 and 6 in Chungnam.

Although the closures have been confirmed, specific alternatives have not yet been finalized. For Boryeong Unit 5, an LNG power plant is planned, but the other plants are either planned to be built in other regions or remain undecided.

In regions with coal-fired power plants, the energy industry constitutes a significant portion of the local economy. In Boryeong City, about 30% of the Gross Regional Domestic Product (GRDP) depends on power generation, and in Taean County, about 50% of the GRDP relies on the power generation business. In this situation, closing power plants without countermeasures inevitably leads to population decline, economic contraction, and employment reduction.

In fact, in Boryeong City, after the early closure of Boryeong Thermal Power Units 1 and 2 in December 2020, the population decreased by about 1,800 in 2021. Local fiscal revenue dropped by approximately 4.4 billion KRW, and consumption expenditure decreased by 19 billion KRW, highlighting the urgent need for countermeasures.

In this context, just transition and fostering alternative industries for the closure areas are major challenges. The province has established the Chungnam 2045 Carbon Neutral Reduction Plan and decided to prioritize the local industrial economy affected by the closure of coal-fired power plants, but legal support has not been established.

Governor Kim Tae-heum has emphasized the need to enact the 'Special Act on Support for Coal-Fired Power Plant Closure Areas' to support the local economy of power plant closure areas during the 21st National Assembly. However, the special act, which was primarily proposed by People Power Party lawmaker Jang Dong-hyuk, failed to pass the standing committee and was discarded with the end of the 21st National Assembly. The province is reiterating the necessity of the special act at the legislative forum on the coal phase-out law held on the first day of the 22nd National Assembly.

The province has chosen hydrogen, a clean energy source, as an alternative industry. By declaring itself a Special Carbon Neutral Economy Province, it is focusing on restructuring the industrial structure centered on the hydrogen industry. Plans include creating a hydrogen energy convergence industrial belt along the west coast to revitalize the hydrogen industry. However, to realize carbon neutrality, securing more energy industries such as solar and wind power besides hydrogen is necessary.

Professor Lee Gu-yong of Chungnam Provincial College explained, "Carbon neutrality would be easy if about five types of energy?hydrogen, LNG, solar, wind, and bioenergy?are distributed. We could close power plants immediately and build solar or wind power plants, but the problem is that most of the market share is held by China and Europe, making it economically unfeasible."

He added, "What is most needed for carbon neutrality is the spread of renewable energy, but securing that technology takes time. Chungnam should first focus on the hydrogen industry, which it can lead proactively, and expand into solar and wind industries through cooperation with other local governments."

Professor Lee emphasized, "If solar, hydrogen, and wind industries are secured, South Korea will no longer be called a resource-poor country without natural resources, and it can become an energy self-reliant country free from oil pressures from Australia or Russia."

Efforts to promote carbon neutrality practices in daily life should also be further expanded and refined to become a culture, as Governor Kim Tae-heum suggested. There is also a strong call to enhance education and experiential learning so that the younger generation can internalize the importance of carbon neutrality and translate it into daily practice.