US Pursues Anti-Green Policies
Opportunities in Petrochemical Plants
EU Maintains Pro-Green Policies
Korea Sees Opportunities in SMR, LNG, and Plant Sectors
The United States and the European Union (EU), the two major global economic blocs, are pursuing contrasting 'green growth strategies,' prompting calls for South Korea to establish strategies to respond to environmental regulations and seize new growth opportunities.
The Korea International Trade Association's International Trade and Commerce Research Institute offered this advice in its report titled 'Changes and Implications of the 2025 US-EU Green Growth Strategies,' published on the 24th.
Since the launch of the second Trump administration, the US has pursued anti-green policies under the 'America First' doctrine, reducing global climate leadership and prioritizing national energy security and economic growth.
This year, the US officially withdrew again from the Paris Agreement, diminished its role in the United Nations Framework Convention on Climate Change (UNFCCC), declared a national energy emergency through an executive order, and formalized fossil fuel-centered power generation. Additionally, it is considering a 'carbon tax' and raising non-tariff barriers to protect domestic industries.
In contrast, the EU continues to pursue pro-green policies while attempting to enhance industrial competitiveness by easing regulations. In the recently announced 'Omnibus Package,' the European Commission postponed the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD), and Carbon Border Adjustment Mechanism (CBAM), or significantly relaxed their obligations to reduce the burden on companies.
The report analyzed that although the US and EU green strategies show opposing directions, both regions aim to secure energy security and promote strategic industry growth. Accordingly, it stated that "new opportunities aligned with policy directions must be utilized."
The report particularly emphasized the need to expand infrastructure investments such as Small Modular Reactors (SMR), Liquefied Natural Gas (LNG) carrier ships, terminals, and storage facilities to secure energy security. It also anticipated that business opportunities in petrochemical plants would expand as the US returns to fossil fuels. Conversely, it warned that eco-friendly industries like electric vehicles might face reduced support, leading to investment contraction and a decline in technological innovation.
Park So-young, a senior researcher at the Korea International Trade Association, advised, "As countries implement policies to protect their domestic industries and strengthen competitiveness, it is time for us to shift to a growth-oriented carbon neutrality strategy." She added, "In particular, we must proactively participate in international treaty and standards-setting meetings to ensure that areas where our companies have strong competitiveness, such as SMR and eco-friendly ship technologies, become international standards."
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