CONTRIBUTION Winds of change: Germany and Korea power green revolution
Korean-German Chamber of Commerce and Industry President and CEO Martin Henkelmann
The clock is ticking on climate change, and the world is gearing up for a critical turning point.
At the COP29 Climate Change Conference next month in Baku, Azerbaijan, leaders from 198 countries will unveil their vision for Nationally Determined Contributions (NDCs) 3.0 that will redefine how the world tackles the climate crisis over the next decade.
These bold climate targets are not just about limiting emissions — they represent a major opportunity to foster green industries and accelerate the global shift toward a sustainable economy.
For Germany and Korea, both export-driven and industry-oriented economies, achieving carbon neutrality goals — 2045 for Germany and 2050 for Korea — requires a fundamental overhaul of their global supply chains.
Each stage, from raw materials to finished products, must align with climate objectives. This is especially with tightening measures such as the European Union’s Supply Chain Due Diligence Directive and carbon border taxes, which are pushing companies to adopt greener practices.
In a landmark decision, Korea’s Constitutional Court recently ruled parts of the Carbon Neutrality Act were unconstitutional for failing to set post-2030 emissions targets, elevating climate change as a constitutional right issue.
This ruling now mandates a science-based pathway to carbon neutrality by 2050, reshaping businesses operations and solidifying sustainability as a non-negotiable business priority.
In this context, collaboration between Germany and Korea has become increasingly significant. Germany has been a global leader in energy transition, achieving a milestone in 2023 with 56 percent of its total electricity generated from renewable energy sources such as wind, solar, biomass and hydropower.
Earlier this year, Germany even hosted the 10th Berlin Energy Transition Dialogue where global energy experts and policymakers from over 75 countries discussed strategies for tripling the new global renewable capacity agreed upon at COP28.
Germany has launched a 4 billion euro ($4.37 billion) subsidy program to help energy-intensive industries such as steel, glass and chemicals transitioning to greener production methods as part of its strategy to achieve climate neutrality by 2045.
In parallel, Korea is also making strides in green energy and technological advancement.
At the beginning of this year, the Korean government and local banks pledged to jointly invest over $337 billion until 2030 to tackle the climate crisis.
This investment is expected to reduce greenhouse gas emissions by 85.97 million tons by 2030, representing 29.5 percent of the government’s reduction target over the next seven years.
Collaborative efforts, like the Korean-German Energy Partnership and recent Korea-Germany Energy New Industry Joint R&D Roundtable supported by Korea’s Ministry of SMEs and Startups, have spurred innovation in energy technologies, bringing academic and businesses from both countries together to lead the global transition to cleaner energy.
However, significant challenges remain.
Developing adequate storage facilities and expanding energy grids for the full utilization of green electricity require continuous innovation and cross-border cooperation.
As we navigate these challenges, at the recent Korean-German Climate and Environment Conference, co-hosted by the Korean-German Chamber of Commerce and Industry (KGCCI) and the German Embassy in Seoul and supported by SAP, officials and business leaders explored potential green partnership in sustainable supply chains.
Additionally, the upcoming Korean-German Business Forum on Offshore Wind Energy will spotlight the leadership role of government and industry in scaling up offshore wind projects.
Discussions will cover the challenges and opportunities of centralized government-led offshore wind strategies, the impact on Korea’s local supply chain and the immense potential of this sector to drive economic growth.
Korean-German Chamber of Commerce and Industry (KGCCI) President and CEO Martin Henkelmann, fifth from right, poses with participants in the Korean-German Climate and Environment Conference 2024 at Conrad Seoul Hotel, Tuesday. Courtesy of KGCCI
This deepening cooperation between Korea and Germany will not only contribute to their national climate targets but also serve as a blueprint for international climate diplomacy.
Together, we are at the forefront of sustainable innovation, driving global progress towards a greener, more resilient future.
This partnership provides valuable lessons and opportunities for Korean and German businesses looking to contribute to and benefit from the green energy revolution shaping our world.
Because through bilateral collaboration between Korea and Germany, along with all our stakeholders, we can advance more swiftly, boldly and comprehensively.
The writer is the president and CEO of the KGCCI.