South Korea has announced an ambitious strategy to drastically reduce its carbon footprint, setting itself on a collision course with the Trump administration's drive to expand exports of American liquefied natural gas (LNG).
A Pledge for a Coal-Free Future
At recent United Nations climate negotiations, South Korea's newly established Ministry of Climate, Energy and Environment unveiled plans to retire the majority of the nation's coal-fired power stations by 2040. The ministry also committed to slashing the country's carbon emissions by at least half by 2035.
This represents a significant step for a nation historically reliant on fossil fuels, which operates one of the world's largest fleets of coal plants and imports virtually all its coal. Experts view the announcement as a signal that Seoul intends to accelerate its shift to renewable energy, a transition where it currently lags behind both regional neighbours and global averages.
The US LNG Deal: A Conflicting Priority
However, this green ambition directly conflicts with trade negotiations initiated under President Donald Trump. As part of broader talks to avoid punitive tariffs, South Korea has offered to significantly increase purchases of US liquefied natural gas.
An agreement still under discussion could see Seoul invest $350 billion in American projects and buy up to $100 billion worth of US energy products, including LNG. Industry analysis suggests the deal, lasting between three to ten years, could commit South Korea to importing between 3 million and 9 million tons of American LNG annually.
While LNG burns cleaner than coal, it remains a fossil fuel that produces planet-warming emissions, particularly methane. Climate campaigners argue that locking in long-term LNG imports risks undermining South Korea's climate promises and perpetuating dependency on fossil fuels.
Navigating a Contradictory Energy Path
The political landscape adds complexity. The current liberal President, Lee Jae Myung, elected in a snap vote in June 2025, campaigned on stronger climate action. This marked a shift from his conservative predecessor, Yoon Suk Yeol, under whom climate commitments had softened.
In an interview, the inaugural Climate Minister, Kim Sung-hwan, stated, "As the global temperature rises, we all need to responsibly take climate action and Korea will have a stronger sense of responsibility." The government's target is to cut emissions by 53% to 61% from 2018 levels, a compromise that disappointed activists but exceeded proposals from major business lobbies.
Michelle Kim, an energy specialist at the Institute for Energy Economics and Financial Analysis, highlighted the challenge: "It's unclear how South Korea will manage and consolidate all this somehow contradictory planning regarding its energy sector."
The Risk of Trading One Fossil Fuel for Another
The core concern for environmental groups is that a coal phase-out could simply be replaced by gas dependency. Insung Lee of Greenpeace Seoul warned, "If we just replace coal plants with LNG, that means the coal exit actually doesn’t lead to a green transition."
Minister Kim positioned LNG as a "complementary or emergency energy source" to support the intermittency of renewables, with the future energy mix focusing on nuclear and renewables. The government has also set a new goal to boost offshore wind capacity to 4 gigawatts, a tenfold increase.
Nevertheless, South Korea's renewable progress remains slow. While its share of domestic power from renewables rose to 10.5% last year, it is still one of the lowest rates among major economies. For comparison, Japan generates 21% from renewables and Spain 42%.
Global Repercussions of a Korean Shift
South Korea's move carries weight beyond its borders. By joining the Powering Past Coal Alliance, it sent a powerful market signal. The pledge to close 40 of its 61 coal plants by 2040 may force an "enforced transition" for coal exporters in Australia, Indonesia, and Russia.
"One of the biggest importers in the world, one of the biggest customers, is starting to move away from coal," said James Bowen of Climate Analytics. Michelle Kim of IEEFA added that South Korean companies risk competitive disadvantage if they don't decarbonise, urging the nation to "speed up renewable energy deployment and come out from high dependency on the fossil fuel industry."
The nation now faces a delicate balancing act: honouring its climate leadership pledges while managing a critical trade relationship, all in pursuit of a genuinely sustainable energy future.
