KEPCO, POSCO most liable Korean companies for global warming

Korea Electric Power Corp.'s headquarters in Naju, South Jeolla Province / Yonhap

Korea Electric Power Corp. (KEPCO) and POSCO are two of the top Korean companies that contribute significantly to global warming as they burn substantial amounts of fossil fuels for business activities, according to a Seoul-based nonprofit environmental group, Tuesday.

State-run utility firm KEPCO's five regional subsidiaries — Korea Energy, Korea East-West Power, Korea Southern Power, Korea Midland Power and Korea Western Power — altogether produced 2,026 metric tons of carbon dioxide equivalent (MtCO2e) of greenhouse gases from 2011 to 2020, according to Solutions for Our Climate (SFOC). The figure represents 0.57 percent of the global output and 32 percent of the entire greenhouse gas emissions from Korea.

SFOC said KEPCO's environmental responsibility for the emissions translates to almost 175 trillion won ($133 billion). The calculation, the climate defenders group said, was based on a method explained in "Time to pay the piper: Fossil fuel companies' reparations for climate damages," an article published by global environmental findings journal One Earth last May.

The environmental group cited a theory from the article that fossil fuel-bound greenhouse gas emissions, for each country with major emission records, should charge equal responsibility to companies that supply fossil fuels, those that use the fuels in running business operations and governments that support those companies.

The country's leading steelmaker POSCO, according to SFOC, produced 747 MtCO2e during the same period, contributing to 0.21 percent of the global emissions. This translates to an environmental responsibility worth over 64 trillion won.

Korea's other top emitters included Hyundai Steel, POSCO Energy, S-Oil and Samsung Electronics. The top 10 companies, all relying on coal and gas, have been the country's core growth engines but at the same time shoulder the heaviest climate responsibilities, according to SFOC.

POSCO's steel mill in Gwangyang, South Jeolla Province / Courtesy of POSCO Holdings

“Addressing loss and damage is critical in recognizing and redressing the irreversible destruction caused by climate change on vulnerable communities," Mary Robinson, former Irish president (1990 to 1997) who served as the United Nations High Commissioner for Human Rights following her presidency, was quoted as saying in SFOC's press release.

"There is a weight of responsibility that should be held by nations with significant greenhouse gas emissions. However, the absence of clear measurements of their contribution to global climate damages creates ambiguity and weakens accountability. This report takes positive first steps towards clarifying responsibilities for action on loss and damage.”

SFOC further expanded the climate responsibility scope to the country level and found that Korea produced 15,466 MtCO2e from 1990 to 2020. Its global contribution was 1.7 percent and its overall climate responsibility came to $393 billion. China topped the rank with over 190,000 MtCO2e and $5 trillion, followed by the United States with over 170,000 MtCO2e and $4.4 trillion. Korea ranked ninth.

"From 2011 until 2020, Korea emitted 6,367 MtCO2e overall and the country's top-ranking companies are responsible for 56 percent of it," an SFOC official said on the closing day of COP28 UAE, during which 190 state representatives gathered in Dubai trying to reach global agreements on cleaner policies. "The country, based on the data, must regurgitate nearly 20 trillion won every year from 2025 to 2050 to the global communities that are suffering the most from the climate crisis."

KEPCO declined to comment on the issue. POSCO said its emissions are inevitable, especially when it produces most of the country's steel products.

"Top steelmakers in countries still aren't free from generating as much emissions as they produce, like those in Japan and China," a POSCO official said, admitting its climate responsibility.

"But we also recognize the global environmental needs and ESG guidelines. That's why we have a goal to neutralize carbon emissions by 2050 and also have a patented environmental technology now in practice called HyREX (hydrogen reduction and electrical smelting) to replace coal. This roadmap will help us keep meeting global demand for wrought-iron in an eco-friendly way."