ED 'RE100' campaign

Korean businesses can no longer put off shifting to renewables

The government has decided to introduce the global “RE100” campaign in Korea. The Ministry of Trade, Industry and Energy said about 60 agencies and businesses had indicated they would participate in the so-called “K-RE100” project, Korea's localized rebranding of what is a global drive. The worldwide movement calls for meeting 100 percent of power demand with renewable energy sources such as solar and wind power by 2050. Although the local campaign is a pilot project, the number of willing participants is not insignificant, given that it is in its initial stages.

K-RE100 is a renewable energy expansion project that suits the situation here. The government is attempting to promote the drive among local companies that have shown little interest in environmental stewardship. So far, the attempt seems to have achieved the desired results ― to jumpstart the drive, the ministry will make the most of its “green premium system” and renewable energy certificates (RECs), giving additional points to companies that minimize carbon emissions.

But how will the government turn these promises into action? The K-RE100 drive is somewhat different from the global campaign, as the administration has eased its standards a little for Korean participants. The worldwide campaign, initiated by the Climate Group, an international nonprofit, and the Carbon Disclosure Project (CDP), has received confirmation of participation from about 300 global businesses, including giants Google, Apple and BMW. However, SK Group is the only Korean business that has registered with the drive ― a strong indication of how passive “Corporate Korea” is on the climate crisis issue overall.

RE100 is more than a simple environmental campaign aimed at reducing the use of fossil fuels. It has a direct impact on businesses. Global companies that have vowed to take part in the campaign also call for their suppliers to join it. Korean companies are likely to experience difficulties due to their heavy export dependence. Korea is no doubt a manufacturing powerhouse but it relies far too heavily on dirty energy ― particularly coal ― and the energy transition will certainly be accompanied an enormous financial burden.

Carbon neutrality is likely to emerge as the biggest trade barrier in the future. It is not a matter limited to specific companies. Government officials and businesspeople should pay greater attention to the RE100 campaign. It may already be too late if preparations are only getting underway now.