Korea's Carbon Free Alliance struggles to attract global firms
Carbon Free Alliance President Lee Hoe-sung speaks about how using all carbon-free energy sources will enable carbon neutrality by 2050, at the office of the Ministry of Trade, Industry and Energy at Sejong Government Complex, Monday. Yonhap
Korea's Carbon Free (CF) Alliance is struggling to get global firms to participate as the country's fledgling initiative tries to build up its environmental efforts worldwide so as to reduce global carbon emissions, according to the Seoul-based organization and industry experts, Tuesday.
Launched last October by former Intergovernmental Panel on Climate Change (IPCC) Chairman Lee Hoe-sung, the alliance has so far registered 20 member companies, all of which are based in Korea, including Samsung, Hyundai, SK, LG, POSCO and Hanwha. But while it aims to expand its network of member companies worldwide, no company outside of the country has signed up for the scheme.
Compared to RE100 and 24/7 CFE Compact, the alliance is far behind when it comes to the level of global companies participating. RE100, launched in 2014 by London-based non-profit organization Climate Group, has attracted 426 companies worldwide, including 36 Korean firms. 24/7 CFE Compact, organized by Google and UN-Energy in 2021, has attracted 145 firms, two of which are Korean.
What makes the CF Alliance difficult for companies to join, according to a nuclear engineering professor in Korea, is that it requires binding conditions to acquire and maintain the membership.
"Such measure can kind of scare them off," Chung Bum-jin from Kyung Hee University said. "RE100, which is very much like a non-government organization, accepts any company with a willingness to join. Also considering that CFE Compact is now in action and functions similarly to CF Alliance, I think it will be difficult for the alliance to gather global interest especially when it is under the control of the central government."
CF Alliance will fail unless it comes up with a certification regulation system that satisfies global standards and expectations, according to a government official from the Presidential Commission on Carbon Neutrality and Green Growth.
President Yoon Suk Yeol speaks about Korea's launch of the Carbon Free Alliance during the United Nations General Assembly in New York City, Sept. 20, 2023. UPI-Yonhap
"The alliance is no doubt a key to reaching carbon neutrality since the country's current scenario aims to use renewable energy for 60 to 70 percent of total power output to reach the goal by 2050, isn't feasible," the official said. "But still, the alliance that was born only a few months ago is now hard-pressed to encourage foreign companies to join it."
On Monday, Chairman Lee held a press conference at Sejong Government Complex, sharing the achievements of the CF Alliance so far. He said that the alliance has held 20 exchanges with global agencies and gained endorsements from the United Kingdom, France, the Netherlands, Saudi Arabia and the United Arab Emirates. This year, he said that he will complete writing the alliance's certification blueprints for global standardization and promote it to the world to gain further international endorsements.
A key strategy of the alliance is that it approves using all types of carbon-free energy resources to achieve carbon neutrality. Unlike RE100 which only approves renewable energy resources, the alliance welcomes nuclear power and hydrogen as well. Lee said that the use of renewable energy only, isn't sustainable for achieving carbon neutrality and that world leaders at COP28 in Dubai agreed with the CF Alliance's comprehensive carbon-free initiative.
Kim Jin-mi from the alliance's secretariat office said that it is now working on designing its carbon-free certification requirements that can be agreed and jointly pursued by other countries, which she said is its current priority.
"We've already garnered endorsements from Microsoft, Google, Apple and Exxon Mobile at a roundtable we hosted during APEC last November," Kim said. "We've confirmed the companies' affirmation that our initiative is essential for carbon neutrality by 2050."