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With average global operation rates for coal-fired power plants hitting a historic low last year, a report argues that South Korea’s central government and businesses have been bucking this trend of shifting away from coal.

On Mar. 26, international environment groups including Greenpeace, Global Energy Monitor (GEM), and the Centre for Research on Energy and Clean Air released a “Boom and Bust 2020” report, which included an analysis of global coal-fired power plants last year.

According to the report, 2019 marked the fourth straight year of decline in major indicators of coal-fired power generation, including new construction and acquisition of construction permits. The average global rate of coal-fired power plant operation was calculated at an all-time low of 51%.

As the globe shifts away from coal, however, South Korea has moved in the opposition direction.

The report noted, “While the South Korean government has announced that it is reducing coal-fired power as a percentage of total power generation to 36% by 2031, coal remains a major source of power generation. At the current rate, South Korea is expected to generate 3.2 times as many greenhouse gases and the carbon emissions required to restrict the global temperature rise to within 1.5℃.”

The report also noted that South Korea was “ranked third in the world after China and Japan in spending public funds on overseas coal projects.” Between 2008 and 2018, the Export-Import Bank of Korea, Korea Trade Insurance Corporation, Korea Development Bank, and others provided over US$10 billion in funding for coal-related projects overseas.

“Doosan Heavy Industries recorded 2.6 trillion won (US$2.15 billion) in losses from overseas coal projects over the past five years. The Korea Electric Power Corporation also shouldered over 800 billion won (US$661.42 million) in losses recently after mining investment in Australia fell through,” noted Yang Yeon-ho, secretary for the Seoul chapter of Greenpeace.

“This kind of investment is an anachronism in both environmental and business terms,” Yang argued.

By Choi Ye-rin, staff reporter

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