Chief Lee: "The Aim Is to Reduce Upward Pressure on Rates"
Presidential Office Official: "The Core of This Discussion Is to Ensure the Emissions Trading System Functions Properly"
Greenhouse Gas Emission Costs at $7.6 Per Ton, Significantly Lower Than in the EU and China
Lee Kyuyeon, Chief of Public Relations and Communication at the Presidential Office, is taking questions from the press following a briefing related to the Chief Secretary and Aide Meeting presided over by President Lee Jae Myung on the 14th at the Yongsan Presidential Office building in Seoul. Photo by Yonhap News
On August 14, President Lee Jae Myung stated, "As we work toward achieving our greenhouse gas reduction targets, it is inevitable that electricity rates will rise," adding, "We must proactively inform the public about this and seek their understanding and consent." He emphasized that if this is the path that must be taken, the government should respond proactively while also building sufficient public consensus.
According to Lee Kyuyeon, Chief of Public Relations and Communication at the Presidential Office, President Lee made these remarks while presiding over a Chief Secretary and Aide Meeting at the Yongsan Presidential Office on the same day, where he was briefed on the preparations for the 2035 Nationally Determined Contribution (NDC) for greenhouse gas reduction and reviewed key details. The government is currently required to submit its 2035 target to the United Nations Framework Convention on Climate Change as part of its commitment to achieving carbon neutrality by 2050. In this process, President Lee acknowledged that reducing reliance on cheap coal power would inevitably lead to higher electricity rates.
President Lee further noted, "Environmental and economic issues cannot be separated," and called for turning the climate crisis into an opportunity for growth. He especially emphasized, "If this is a path we must take, we must actively respond to the climate crisis," and instructed officials to "devise ways to dramatically increase renewable energy production in order to achieve our reduction targets." However, he also stressed the need to take into account the unique characteristics of certain industries, such as steel and refining, when implementing these policies.
Raising electricity rates is a challenging issue, as it has a significant impact on the economy of ordinary citizens and public opinion. Regarding this, Chief Lee explained, "As we raise greenhouse gas reduction targets, it is inevitable that there will be upward pressure on electricity rates, so it is important to pay close attention to the impact on vulnerable groups." He continued, "Looking at the path taken by advanced countries, greenhouse gas reduction is fundamentally unavoidable. This means we must rapidly expand renewable energy to minimize the impact as much as possible." However, when asked when the increase in electricity rates would actually take place, Chief Lee responded, "It is premature to say that electricity rates will be raised immediately or to specify when this will happen."
Meanwhile, another official from the Presidential Office stated that the core of the current discussion is to ensure the emissions trading system functions properly, rather than allowing for a loose allocation of total emissions. The average cost that domestic companies pay per ton for greenhouse gas emissions is $7.6, which is significantly lower than in China ($13.3) or the European Union ($70), indicating that emissions should be gradually adjusted to align with these standards. In response to a question about whether the government could meet the UN-recommended deadline of September for submitting its 2035 reduction target, the official replied, "We will proceed as quickly as possible, but we must also allow time to gather public input."
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