Turning the Crisis of Korean Industry into an Opportunity:
2030 Energy Transition Policy Proposal
Carbon neutrality has become a universal goal to confront the catastrophic climate crisis and to achieve sustainable growth for humanity. Recently, major countries such as the European Union (EU), the United States, China, and Japan have mobilized not only climate and environmental policies but also industrial, trade, and science and technology policies to accelerate the realization of carbon neutrality and to strengthen global competitiveness. As a result, the global economic order is rapidly being reshaped around decarbonized trade regulations and new industries in the clean energy sector.
In particular, global corporations participating in RE100 are demanding the use of renewable energy from their suppliers, and the Carbon Border Adjustment Mechanism (CBAM) is scheduled to take full effect in 2026. The saying “Exports will be blocked without renewable energy” is no longer an exaggeration but an imminent reality. At the same time, with intensifying hegemonic conflicts among the United States, China, and Europe, the end of the free-trade era and the resurgence of bloc economies are becoming increasingly evident. In this new normal era where advanced nations are beginning to use climate as a new trade barrier, Korea—characterized by its energy-intensive industrial structure and compounded by a stagnant domestic market—faces a widespread outlook that without structural reform, it will be difficult to escape from low growth and prolonged economic stagnation.
To avoid falling behind in this massive transformation, Korea must pursue policy and institutional innovation for energy transition at the national level. Expanding renewable energy and power grid infrastructure, accelerating energy transition through new technologies such as AI, strengthening corporate competitiveness to respond to CBAM, and building a new industrial ecosystem based on sustainability have become essential tasks. Beyond the climate crisis, we are entering an era where economy, security, and trade are intricately intertwined. In this context, devising future strategies that achieve both carbon neutrality and growth is no longer optional but imperative.
Energy transition presents an opportunity for fundamental innovation of the Korean economy. For Korea, which possesses both strong manufacturing foundations and advanced digital IT technologies, this can become a turning point for new growth. By achieving energy independence, the country can create one million high-quality green jobs, enhance the competitiveness of existing industries, and establish the foundation for fostering future industries, while also promoting balanced regional development.
If government, industry, and civil society work together to establish and implement a concrete roadmap, Korea will be able to create new opportunities within the changing global economic order and solidify the foundation for a sustainable future. Minimizing the economic and social costs brought on by the climate crisis and responding proactively to changes in global competition are urgent responsibilities that can no longer be postponed.
The public sector must set a clear direction and build large-scale infrastructure to open the way, while the private sector must discover new growth engines through bold investment and innovation. Expanding large-scale infrastructure and restructuring the industrial economy will broaden investment opportunities and establish the foundation for sustainable and fair growth.
However, the new economic order of the climate crisis era is a massive wave that can only be overcome through the joint response of government, business, and citizens. Promoting carbon neutrality while simultaneously creating economic opportunities is a shared task.
Energy transition must go beyond industrial restructuring to enhance regional recovery and deliver tangible socio-economic benefits. Revitalizing stagnant rural areas and traditional industries, while restoring local communities, can lead to sustainable social innovation.
With this understanding, the Energy Transition Forum has engaged diverse stakeholders—including industry, academia, and civil society—in in-depth discussions on policies to realize Korea’s carbon neutrality and a sustainable future. The outcome of these discussions is presented in the report:
“2030 Energy Transition Policy Proposal: Turning Korea’s Industrial Crisis into an Opportunity”, which sets forth the following eight core policy pledges.
April 10, 2025
Energy Transition Forum
Contact
info@energytransitionkorea.org, Jaemin Lim, Secretary-General(010-2028-0595)
※ The preview and attached file of the policy proposal were updated to the final version on April 30, 2025 (with partial revisions to Chapter 6 on solar energy).
※ The preview and attached file of the policy proposal were updated to the version of April 22, 2025.
Turning the Crisis of Korean Industry into an Opportunity:
2030 Energy Transition Policy Proposal
Carbon neutrality has become a universal goal to confront the catastrophic climate crisis and to achieve sustainable growth for humanity. Recently, major countries such as the European Union (EU), the United States, China, and Japan have mobilized not only climate and environmental policies but also industrial, trade, and science and technology policies to accelerate the realization of carbon neutrality and to strengthen global competitiveness. As a result, the global economic order is rapidly being reshaped around decarbonized trade regulations and new industries in the clean energy sector.
In particular, global corporations participating in RE100 are demanding the use of renewable energy from their suppliers, and the Carbon Border Adjustment Mechanism (CBAM) is scheduled to take full effect in 2026. The saying “Exports will be blocked without renewable energy” is no longer an exaggeration but an imminent reality. At the same time, with intensifying hegemonic conflicts among the United States, China, and Europe, the end of the free-trade era and the resurgence of bloc economies are becoming increasingly evident. In this new normal era where advanced nations are beginning to use climate as a new trade barrier, Korea—characterized by its energy-intensive industrial structure and compounded by a stagnant domestic market—faces a widespread outlook that without structural reform, it will be difficult to escape from low growth and prolonged economic stagnation.
To avoid falling behind in this massive transformation, Korea must pursue policy and institutional innovation for energy transition at the national level. Expanding renewable energy and power grid infrastructure, accelerating energy transition through new technologies such as AI, strengthening corporate competitiveness to respond to CBAM, and building a new industrial ecosystem based on sustainability have become essential tasks. Beyond the climate crisis, we are entering an era where economy, security, and trade are intricately intertwined. In this context, devising future strategies that achieve both carbon neutrality and growth is no longer optional but imperative.
Energy transition presents an opportunity for fundamental innovation of the Korean economy. For Korea, which possesses both strong manufacturing foundations and advanced digital IT technologies, this can become a turning point for new growth. By achieving energy independence, the country can create one million high-quality green jobs, enhance the competitiveness of existing industries, and establish the foundation for fostering future industries, while also promoting balanced regional development.
If government, industry, and civil society work together to establish and implement a concrete roadmap, Korea will be able to create new opportunities within the changing global economic order and solidify the foundation for a sustainable future. Minimizing the economic and social costs brought on by the climate crisis and responding proactively to changes in global competition are urgent responsibilities that can no longer be postponed.
The public sector must set a clear direction and build large-scale infrastructure to open the way, while the private sector must discover new growth engines through bold investment and innovation. Expanding large-scale infrastructure and restructuring the industrial economy will broaden investment opportunities and establish the foundation for sustainable and fair growth.
However, the new economic order of the climate crisis era is a massive wave that can only be overcome through the joint response of government, business, and citizens. Promoting carbon neutrality while simultaneously creating economic opportunities is a shared task.
Energy transition must go beyond industrial restructuring to enhance regional recovery and deliver tangible socio-economic benefits. Revitalizing stagnant rural areas and traditional industries, while restoring local communities, can lead to sustainable social innovation.
With this understanding, the Energy Transition Forum has engaged diverse stakeholders—including industry, academia, and civil society—in in-depth discussions on policies to realize Korea’s carbon neutrality and a sustainable future. The outcome of these discussions is presented in the report:
“2030 Energy Transition Policy Proposal: Turning Korea’s Industrial Crisis into an Opportunity”, which sets forth the following eight core policy pledges.
April 10, 2025
Energy Transition Forum
Contact
info@energytransitionkorea.org, Jaemin Lim, Secretary-General(010-2028-0595)
※ The preview and attached file of the policy proposal were updated to the final version on April 30, 2025 (with partial revisions to Chapter 6 on solar energy).
※ The preview and attached file of the policy proposal were updated to the version of April 22, 2025.