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South Korean elections spark uncertainty for renewables

  • : Electricity, Hydrogen
  • 24/03/01

South Korea's nuclear strategy is likely to stay, regardless of the outcome of its 10 April national assembly elections, although a majority win for the People Power Party (PPP) could further threaten its renewable energy ambitions.

South Korea's national assembly elections will take place on 10 April, with neck-and-neck approval ratings so far for the PPP and Democratic Party (DP). Current president Yoon Suk-yeol is from the PPP, although the DP currently holds the majority seat in the national assembly with 163 of the 297 seats.

The incumbent Yoon administration has been expanding the domestic nuclear fleet, while at the same time cutting 2030 targets for hydrogen use in power generation. South Korea also recently released a host of measures as it aims to become "the world's nuclear energy powerhouse", with plans to develop 3.3 trillion won ($2.48bn) worth of nuclear power plant projects this year.

The country will likely see an even greater emphasis on nuclear power should the PPP take the majority in the general elections, while main rival DP's stance is more in favour of renewable energy and hydrogen, as opposed to nuclear power.

South Korea's final 2024 budget seemingly reflects lower prioritisation of its net zero goals, despite the DP making up the majority of the country's legislative body. This is in addition to the country seeking to solidify ties with the key energy-producing Mideast Gulf region, which hints it may likely continue relying on fossil fuels.

But South Korea seems largely committed to its hydrogen ambitions, as it continues to improve regulations in the industry this year. The country also previously announced it plans to open a clean hydrogen power generation market early this year.

Nuclear emphasis

But other factors such as South Korea's push to boost its exports to spur economic growth may continue to underpin South Korea's increasing reliance on nuclear power, also reflected in its lower coal-fired and gas-fired generation in 2023.

Notably, the Yoon administration is currently pushing to advance a South Korean-led global Carbon-Free Energy (CFE) Initiative. This initiative aims to expand all forms of energy sources that do not emit greenhouse gases (GHG), which notably includes nuclear power, as well as hydrogen and carbon capture, utilisation and storage.

The country's trade, industry and energy ministry (Motie) has since published a document, in which it addresses speculation that the CFE initiative's aim is to expand nuclear power, stating that it "does not discriminate between renewable and nuclear energy".

"What we need is an inclusive approach that can propel our industries to reach the greater goal of carbon neutrality at a minimum cost by utilising a variety of carbon-free energy sources," said Carbon Free Alliance chairperson Lee Hoesung, who is also the former chairperson of the Intergovernmental Panel on Climate Change, in late January.

South Korea hopes to see global uptake of the initiative, with 20 major domestic companies currently participating in the CFA. This is in comparison to the RE100 initiative, which only includes renewable energy, but has over 400 global members. It is also worth noting that South Korea's budget for this year is based on boosting exports to spur economic growth, with one of its key exports being nuclear technology and equipment, which is a possible reason why the country would be invested in seeing more uptake of nuclear power globally.

Policy continuity

South Korea's upcoming general elections are not likely to result in major energy policy changes, even if there is a significant change in the make-up of the National Assembly. But the same cannot be said for the country's presidential elections.

DP-affiliated former president Moon Jae-in previously enacted plans to phase out nuclear power during his leadership, with ambitious emissions targets. But the country did a U-turn on its stance on nuclear power when current president Yoon replaced Moon in 2022. This included resuming nuclear reactor construction and raising nuclear capacity, after it was reduced under the previous administration.

But Yoon has been in office for about two years and his term only ends in 2027, so the country's policies are likely to stay largely consistent for the foreseeable future, although how they will pan out beyond that remains to be seen.


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25/04/11

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting. Argus Media spoke to ministerial adviser and Finland's head representative at the IMO delegation talks, Anita Irmeli, on the sidelines of the London MEPC meeting. What is your initial reaction to the text? We are happy and satisfied about the content of the agreed text, so far. But we need to be careful. This week, all member states were able to vote. But in October, when adaption will take place, only those states which are parties to Marpol Annex VI will be able to vote if indeed a vote is called for, and that changes the situation a little bit. Here when we were voting, a minority was enough — 40 votes. But if or when we vote in October, then we need two thirds of those party to Marpol Annex VI to be in favour of the text. Will enthusiasm for the decision today remain by October? I'm pretty sure it will. But you never know what will happen between now and and the next six months. What is the effect of the decision on FuelEU Maritime and the EU ETS? Both FuelEU Maritime and the EU ETS have a review clause. This review clause states that if we are ambitious enough at the IMO, then the EU can review or amend the regulation. So of course, it is very important that we first consider if the approved Marpol amendments are ambitious enough to meet EU standards. Only after that evaluation, which won't be until well after October, can we consider these possible changes. Do you think the EU will be able to adopt these the text as it stands today? My personal view is that we can perhaps incorporate this text under FuelEU Maritime, but it may be more challenging for the EU ETS, where shipping is now included. What was the impact of US President Donald Trump's letter on the proceedings? EU states were not impacted, but it's difficult to say what the impact was on other states. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IMO approves two-tier GHG pricing mechanism


25/04/11
25/04/11

IMO approves two-tier GHG pricing mechanism

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting, pending an adoption vote at the next MEPC in October. The proposal passed by a majority vote, with 63 nations in favor including EU states, the UK, China and India, and 16 members opposed, including Mideast Gulf states, Russia, and Venezuela. The US was absent from the MEPC 83 meeting, and 24 member states abstained. The proposal was accompanied by an amendment to implement the regulation, which was approved for circulation ahead of an anticipated adoption at the October MEPC. Approval was not unanimous, which is rare. If adoption is approved in October at a vote that will require a two-thirds majority, the maritime industry will become the first transport sector to implement internationally mandated targets to reduce GHG emissions. The text says ships must initially reduce their fuel intensity by a "base target" of 4pc in 2028 ( see table ) against 93.3 gCO2e/MJ, the latter representing the average GHG fuel intensity value of international shipping in 2008. This gradually tightens to 30pc by 2035. The text defines a "direct compliance target", that starts at 17pc for 2028 and grows to 43pc by 2035. The pricing mechanism establishes a levy for excessive emissions at $380 per tonne of CO2 equivalent (tCO2e) for ships compliant with the minimum 'base' target, called Tier 2. For ships in Tier 1 — those compliant with the base target but that still have emission levels higher than the direct compliance target — the price was set at $100/tCO2e. Over-compliant vessels will receive 'surplus units' equal to their positive compliance balance, expressed in tCO2e, valid for two years after emission. Ships then will be able to use the surplus units in the following reporting periods; transfer to other vessels as a credit; or voluntarily cancel as a mitigation contribution. IMO secretary general Arsenio Dominguez said while it would have been more preferable to have a unanimous outcome, this outcome is a good result nonetheless. "We work on consensus, not unanimity," he said. "We demonstrated that we will continue to work as an organization despite the concerns." Looking at the MEPC session in October, Dominguez said: "Different member states have different positions, and there is time for us to remain in the process and address those concerns, including those that were against and those that were expecting more." Dominguez said the regulation is set to come into force in 2027, with first revenues collected in 2028 of an estimated $11bn-13bn. Dominguez also said there is a clause within the regulation that ensures a review at least every five years. By Hussein Al-Khalisy, Natália Coelho, and Gabriel Tassi Lara IMO GHG reduction targets Year Base Target Direct Compliance Target 2028 4% 17% 2029 6% 19% 2030 8% 21% 2031 12% 25% 2032 17% 30% 2033 21% 34% 2034 26% 39% 2035 30% 43% Source: IMO Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil and gas lobby calls H2 'core competency,' hails 45v


25/04/10
25/04/10

Oil and gas lobby calls H2 'core competency,' hails 45v

Houston, 10 April (Argus) — The oil and gas industry views hydrogen production as a "core competency" and sees 45v tax credits driving US exports and innovation, according to the American Petroleum Institute (API). "We really see this, especially from the oil and gas perspective, as a core competency," said Rachel Fox, API director of policy and strategy, on a webinar Thursday hosted by ConservAmerica. "We have such an advantageous opportunity with this credit," said Fox. "When we're talking about the export opportunity, we really do hold the cards in terms of producing hydrogen at the lowest cost anywhere in the world." The 45V incentive has become a crucible in President Donald Trump's agenda to promote fossil fuels. A broad-based coalition of groups sometimes at odds with one another has coalesced in favor of 45V noting that it promotes manufacturing jobs across rural America and sets up US energy companies to dominate growing global demand for cleaner burning fuels. Nonetheless, ConservAmerica described such energy tax incentives as being "squarely in the crosshairs" as legislators gear up for budget negotiations in which the administration is looking to slash government spending to offset a promised corporate tax cut. By tying a tiered scale of incentives to carbon intensity, 45V has spurred oil and gas companies to develop technologies and practices that curb emissions, said Fox. "There's a lot of incentive to try to hit that $3 mark by getting your hydrogen produced at a really low carbon-intensity limit and so it's galvanized a ton of innovation and a ton of new ideas on how that can be done throughout the natural gas system," said Fox. Most of those ideas revolve around lowering the methane intensity of natural gas production or sourcing low-methane intensity natural gas, such as from biowaste, said Fox. Some environmental advocates are skeptical that emissions from natural-gas based hydrogen production can be driven low enough to qualify for the highest $3/kg tier with existing technology and that most oil and gas companies will instead have to use less lucrative 45Q credits that apply to carbon capture and storage technology (CCS). However, at least one major energy company, ExxonMobil, has said it is seeking 45V to advance its massive natural-gas based hydrogen and ammonia project in Baytown, Texas. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US absence unlikely to derail IMO talks


25/04/10
25/04/10

US absence unlikely to derail IMO talks

London, 10 April (Argus) — The US delegation's absence from the 83rd International Maritime Organisation's (IMO) Marine Environment Protection Committee (MEPC) meeting is unlikely to derail the outcome of discussions on a greenhouse gas (GHG) economic pricing mechanism, market participants told Argus . This comes after the US sent a statement to foreign embassies of countries partaking in the IMO GHG economic pricing mechanism talks, confirming the US' absence from the negotiations. The statement says: "President Trump has made it clear that the US will not accept any international environmental agreement that unduly or unfairly burdens the US or the interests of the American people," according to a document seen by Argus . It adds: "Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to US ships and compensate the American people for any other economic harm from any adopted GHG emissions measures". The statement ends: "The US will engage with partners on energy and investment issues of common interest. We stand ready to work with you to advance our shared commitment to energy security and economic growth". "The US will not be engaging in negotiations at the IMO's 83rd Marine Environment Protection Committee. Consistent with President Trump's executive orders on international environmental agreements and on energy dominance, it is the administration's policy to put the interests of the US and the American people first in the development and negotiation of any international agreements", the US State Department told Argus . IMO member countries are voting this week on the economic pricing mechanism for marine GHG emissions, for which the structure is expected to be agreed by 11 April, according to IMO secretary-general Arsenio Dominguez. Even if the US does not engage in the GHG talks, it cannot unilaterally block decisions at the IMO, a spokesperson told Argus . Many of the GHG measures remain under discussion, with final approvals from the working group expected by 11 April. "The US doesn't have a huge share of the global ocean-going fleet, so their absence or opposition probably won't change the broader [IMO members] consensus", a Chile-based ship owner told Argus . US imposing "reciprocal" costs on foreign ships calling at US ports will almost certainly get passed on to [US] consumers, which could lead to higher prices for goods in the US, the owner said. If the measures are ratified by IMO member nations, US-flagged ships will probably not adhere to IMO's regulations when they call into ports of member countries, a Singapore-based shipbroker said. "We are not expecting any impacting on Asia-Pacific region yet, and it's subject to what is agreed at the MEPC and how levies are calculated," the shipbroker added. Despite not having veto power, the US remains the largest financial contributor to the UN, a Greece-based shipowner told Argus . If international shipbuilding credit lines begin to tighten under US influence, other countries may align with Washington's stance, it added. The IMO has 176 member countries. Greece, China and Japan account for the largest shares of the global ocean-going fleet. During the ongoing session, member states have approved interim guidance on the carriage of biofuel blends. The guidance allows conventional bunker ships certified for carriage of oil fuels under Marpol Annex I to transport blends of not more than 30pc by volume of biofuel , as long as all residues or tank washings are discharged ashore, unless the oil discharge monitoring equipment is approved for the biofuel blends being shipped. By Hussein Al-Khalisy, Madeleine Jenkins, Stefka Wechsler, Mahua Mitra, Natália Coelho, and Gabriel Tassi Lara Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump takes aim at state climate policies


25/04/09
25/04/09

Trump takes aim at state climate policies

Washington, 9 April (Argus) — US president Donald Trump is threatening legal action against state climate and clean energy policies, a move that sent environmental markets sharply lower early Wednesday. Trump on Tuesday directed the Department of Justice to consider taking action against any states and local laws that hamper the development or use of domestic energy resources, with a specific focus on climate-related policies. US environmental markets stumbled in response to the president's executive order, with California Carbon Allowances (CCAs) for December 2025 delivery trading as low as $22.51/metric tonne on the Intercontinental Exchange and December 2025 Regional Greenhouse Gas Initiative (RGGI) CO2 allowances as low as $16/short ton, after being assessed Tuesday at $29.31/t and $21.52/st, respectively. California Low Carbon Fuel Standard futures on ICE also traded as low as $48/t, after going as high as $65.50/t Tuesday. Fears about the Trump order also spilled into the renewable energy certificate (REC) markets. Vintage 2026 PJM Class I traded as low as $28/MWh on the exchange to start the session, but last traded at $33/MWh. Argus assessed the vintage at $34.60/MWh on Tuesday. Trump's order specifically calls out California's cap-and-trade program, as well as "extortion laws" from New York and Vermont that seek to levy fees against fossil fuel companies for responsibility for historical GHG emissions. Such climate "superfund" laws are also being considered by a number of other states. But he also suggests state permitting decisions and other laws could be targeted as well. His order suggests that many of these policies run afoul of the US Constitution by imposing "significant barriers" to trade and discriminating against out-of-state energy sources, or though "arbitrary or excessive" fines. "These state laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living for voting in states with these crippling policies," Trump said. The president directed attorney general Pamela Bondi to report within 60 days on actions she has taken against state laws and to recommend any additional action by the White House or US Congress to stop enforcement of objectionable policies. Trump unsuccessfully attempted to sever the link between the California and Quebec carbon markets during his first term, on the grounds that it violated federal authority to establish trade and other agreements with foreign entities under the US Constitution. The office of California attorney general Rob Bonta (D) said it is reviewing Trump's order, and others he issued Tuesday that aim to bolster the use of coal-fired electricity. "But this much is clear: the Trump Administration continues to attempt to gut federal environmental protections and put the country at risk of falling further behind in our fight against climate change and environmental harm," the office said. "The California Department of Justice remains committed to using the full force of the law and tools of this office to address the climate crisis head on and protect public health and welfare." California earlier this year bolstered funding for its Department of Justice in anticipation of increased legal fights with the Trump administration. New York officials also said they are considering their next steps. The state participates in RGGI and has a renewable energy mandate, but it is also developing an economy-wide carbon market. "We are thoroughly reviewing the [executive order] to determine the potential impact to New Yorkers. The governor is committed to ensuring a clean, affordable and reliable energy grid in New York state," the office of governor Kathy Hochul (D) said. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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