The Path to a Just Transition
V. Local Leaders on Renewable Energy Policy
National-Level Support Needed for Responsible Alternatives
Fair Compensation and Guaranteed Opportunities for Those Who Sacrifice
For Chungnam Province, which will close one coal-fired power plant by the end of this year, a "just transition" is not a future task but an immediate challenge. There is little time left. Since 2021, Chungnam has been promoting a just transition by establishing the nation’s first dedicated fund of 10 billion won, but it is struggling to resolve conflicts. As Chungnam is set to become the first case of a Korean-style just transition, national-level attention and support are desperately needed.
On August 12, Governor Kim Taeheum was interviewed at the reception room of the Chungnam Provincial Government. Governor Kim stated, "A just transition, including the decommissioning and conversion of coal-fired power plants, is an inevitable task of our era, and there is no disagreement with the government's overall direction." He added, "However, while the government has only presented plans for when to phase out coal, it has failed to address 'how' to deal with the inevitable impacts on workers and the local economy resulting from the transition."
On the 12th, Kim Taeheum, Governor of Chungnam Province, explained the region's just transition policy and emphasized the urgency of enacting the "Special Act on Support for Areas Phasing Out Coal-Fired Power Plants." (Photo by Chungnam Province)
Governor Kim emphasized the need to enact a Special Act on Support for Areas Phasing Out Coal-Fired Power Plants. He said, "The special act was automatically discarded at the end of the 21st National Assembly's term, and although it was reintroduced in the 22nd National Assembly, it is still pending." He continued, "Since the Lee Jaemyung administration is pursuing coal phase-out by 2040, I will focus all efforts to ensure the special act is enacted by the end of this year." The core elements of the special act, proposed in April this year by Lee Cheolgyu, chairman of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee, include: the establishment of a support fund, expansion of government subsidies, designation of special power generation zones, transition to alternative industries, priority employment for local residents, and incentives for businesses.
Chungnam Province, which has the largest concentration of coal-fired power plants in Korea-29 out of the nation's 61 units-is taking the lead in pursuing its own just transition. Governor Kim explained, "With the determination that 'if Chungnam does not act, national carbon neutrality is impossible,' we are focusing on energy transition, industrial restructuring, and attracting R&D institutions." He added, "In June 2021, we established the Chungnam Just Transition Fund, and in December 2022, we enacted the Basic Ordinance on Transition."
According to the ordinance, Chungnam Province must establish and implement a basic plan for a just transition every five years, based on the substantive participation and cooperation of stakeholders, residents, and civil society. In addition, a "Just Transition Committee" directly under the governor has been established and is operated to deliberate on major policies and plans during the transition process. The ordinance also provides grounds for region-specific responses, such as requests for designation as a special just transition district and for carbon-neutral city status.
The 10 billion won transition fund, created jointly by the province, cities and counties, and Korea Midland, Western, and Eastern Power Companies, is being invested in projects to improve areas affected by plant closures, including vocational retraining and reemployment support, solar panel installation assistance, and environmental improvements for small businesses and traditional markets.
The reason Chungnam is so proactive in responding to the just transition is that it is already experiencing the negative impacts of the transition. According to Statistics Korea, the population of Boryeong City, where Boryeong Coal Power Plants Units 1 and 2 were closed (December 2020), fell from 100,229 in 2020 to 98,408 in 2021, dropping below the 100,000 mark. Over the same period, the region's gross regional domestic product (GRDP) plunged by more than 388 billion won, from 4.1901 trillion won to 3.8521 trillion won. Governor Kim said, "Chungnam has been the most active in cooperating with the national goal of carbon neutrality, but as a result, we are also the first to suffer the most significant damage." He added, "In Taean and Dangjin, more than 5% of local tax revenue depends on power plants, and in Taean especially, 10% of the population lives near the power plants, making it a direct victim of the transition."
Governor Kim emphasized "responsible alternatives" as the key to a successful just transition. He said, "For the transition to be just, it must be premised on 'fair compensation for sacrifices and guarantees of new opportunities.' Carbon neutrality and the energy transition are necessary paths, but the survival of local communities and residents affected by the process must not be undermined. Only when we provide 'opportunities for work and a foundation for livelihoods' will their anxieties be alleviated."
Governor Kim once again stressed the need to enact the special act. He said, "The biggest problem is that while the government calls for carbon neutrality and a just transition, there is a lack of corresponding financial support and institutional backing." He added, "The closure of coal-fired power plants leads directly to a sharp contraction of the local economy and threatens residents' livelihoods. To minimize these impacts, large-scale financial investment and a legal basis to support it are necessary."
Hongseong = Joo Sangdon, Reporter don@asiae.co.kr
This feature was supported by the Press Promotion Fund, which is financed by government advertising fees.
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