[Interview] "Who Can Call Korea a Climate Villain?" Lee Hoe-sung, Chairman of CF Union

"Carbon Neutrality Must Be Led by the Government to Succeed"
Renewable Energy and Corporate Factory Relocation Are Unrelated
Canada and Japan Further Support the CFE Initiative

Lee Hoeseong, Chairman of the Carbon-Free (CF) Alliance, is giving an interview to Asia Economy on the 26th at the CF Alliance office of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

"First, it is important to clearly define the goal. The enemy of climate change is carbon dioxide, not oil or gas."

On the 26th, the tone of Lee Hoe-sung, chairman of the Carbon-Free Alliance (CF Alliance), whom I met at the Korea Chamber of Commerce and Industry office in Seoul, was firm and confident. Lee served as the chair of the Intergovernmental Panel on Climate Change (IPCC) for eight years from 2015 and has been the chairman of the CF Alliance since October last year. He is a world-renowned scholar in the field of climate and energy, having served as a senior researcher at the Korea Development Institute (KDI), president of the Korea Energy Economics Institute, and president of the International Association for Energy Economics.

There is no topic as complexly intertwined with interests worldwide as climate change. As the chair of the IPCC, his role was to coordinate the interests of 195 member countries. Through decades of experience in the energy sector, he said he gained one scientific certainty: "The goal is carbon-free, and we must acknowledge that various options exist to achieve this and consider what efforts are best."

With this belief, he readily accepted the chairmanship of the CF Alliance. The CF Alliance is a key organization promoting the CFE (Carbon-Free Energy) initiative proposed by President Yoon Suk-yeol in his keynote speech at the UN General Assembly last September. It is a public-private joint consultative body. The CFE initiative is a movement to achieve carbon neutrality (Net Zero) by utilizing various carbon-free energy sources, including not only renewable energy such as solar and wind but also nuclear power, hydrogen, and carbon capture, utilization, and storage (CCUS).

"Climate change is different from environmental issues... The state must intervene"

Unlike RE100, a renewable energy campaign launched by the UK-based private organization The Climate Group that recognizes only renewable energy, the CFE initiative encompasses other carbon-free energy sources. While RE100 is a private-sector-led climate campaign, the CFE initiative is government-led. Lee emphasized that ultimately, the state must lead to realize carbon neutrality.

"Climate is different from local environmental issues such as waste or water pollution. It cannot be solved by an individual alone; it is a global issue requiring all countries to work together, so state intervention is necessary."

Energy is also an issue involving the interests of the entire nation beyond individuals or companies. Since it is directly linked to national economy and security, it must operate based on national interests. Lee stated, "Carbon neutrality must be led by the state with private participation, but currently, it is the opposite," criticizing that "the state is not doing it properly at the national level."

For example, when compiling the greenhouse gas reduction targets (NDCs) presented by each country, calculations show that the global temperature rise will not be limited to 1.5 degrees but will increase up to 3.2 degrees. Countries inevitably have to introduce stronger policies. Lee said, "Companies are engaging in ESG (Environmental, Social, and Governance) activities, but there is no evidence that carbon has actually been reduced through ESG," adding, "It ends as a movement and must lead to real carbon reduction."

To this end, Lee stressed the need for national-level carbon-neutral industrial policies. The U.S. Inflation Reduction Act (IRA) is a representative carbon reduction industrial policy. When the government clearly signals and provides incentives first, companies follow and invest accordingly.

"Claims of relocating production facilities due to renewable energy shortage? Just theory"

Regarding some private organizations recently labeling Korea as a 'climate villain,' Lee raised his voice, saying, "Who can call Korea a climate villain? That is impossible." He said, "Most members of private organizations are from advanced countries, so are those countries climate angels? They are not." We should not be persuaded by the logic of European countries ourselves.

The current climate crisis, such as warming, is largely due to greenhouse gases emitted by Western countries since the industrialization period. Therefore, instead of pointing fingers at other countries, those countries themselves must reflect and make greater efforts to reduce carbon.

Lee emphasized that even when he was chair of the IPCC, advanced countries should play a greater role. As a result, the European Union (EU) advanced its carbon neutrality target from 2050 to 2040.

Lee Hoeseong, Chairman of the Carbon-Free (CF) Alliance, is giving an interview to Asia Economy on the 26th at the CF Alliance office of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

He also refuted the unverified theory that Korea's insufficient renewable energy might cause major companies to relocate production bases overseas or become an obstacle for global companies investing in Korea. The decision on where companies establish production facilities depends on various factors beyond energy, such as labor force, technological level, national laws and systems, and corruption levels.

Similar debates occurred during discussions on the Kyoto Protocol. At that time, there were significant concerns about 'carbon leakage,' where companies would relocate to places with looser regulations if greenhouse gas regulations were strict. Lee said, "IPCC research showed that carbon leakage theoretically exists but has been proven not to occur in reality."

The recent international trend recognizes nuclear power, hydrogen, and CCUS as carbon-free energy sources. At the 28th Conference of the Parties (COP28) to the UN Framework Convention on Climate Change held at the end of last year, it was agreed to triple global renewable energy capacity by 2030 and reduce greenhouse gas emissions through nuclear power, CCUS, and low-carbon hydrogen production. Lee said, "Carbon neutrality cannot be achieved by renewable energy alone," adding, "Utilizing all carbon-free energy sources is a global trend and consensus."

Japan and Canada also express additional support

Regarding claims that hydrogen or CCUS technology might prolong the life of existing fossil fuels, Lee countered, "What is wrong with that?" The important thing is to achieve carbon neutrality, and the enemy humanity must fight is 'carbon,' not 'oil.'

He said, "Saying we should eliminate oil to stop climate change is like saying we should eliminate all cows that emit methane," adding, "Picking visible and easy targets to label as 'villains' does not help solve the problem at all."

He predicted that, just as the price of solar power rapidly dropped due to technological development and economies of scale, the prices of hydrogen and CCUS will also significantly decrease soon. He also viewed direct air capture (DAC) technology as promising. For example, if oil or gas companies capture carbon using CCUS or DAC technologies equivalent to their emissions, carbon neutrality can be achieved. For this reason, global major oil companies are accelerating the development of CCUS and DAC technologies.

Regarding the CFE initiative, in addition to the five countries?United Kingdom, France, Netherlands, Saudi Arabia, and United Arab Emirates (UAE)?that have already expressed support, Japan and Canada have also recently expressed their support. Lee said, "One major country, whose name cannot yet be disclosed, will soon announce its support." The U.S. support is expected to be influenced by the presidential election results in November.

To internationally expand the CFE initiative, the current main focus is establishing a certification system. It is a system that creates certification standards for how much carbon-free energy each country uses and mutually recognizes them.

By establishing a certification system, domestic companies belonging to the CFE initiative will also be able to receive carbon-free energy certification on the international stage. Currently, 20 leading domestic companies from various industries, including Samsung Electronics, SK Hynix, POSCO, and LG Chem, are participating.