We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Policy Engagement Overview: H2KOREA appears to actively engage with the issue of South Korea’s energy mix transition in particular around hydrogen expansion but mostly produced from fossil fuels. H2KOREA had previously taken positive positions on the need for climate action in its top-line messaging, although the association has not recently disclosed its positions. The association has highly limited engagement with specific climate policies in South Korea.
Top-line Messaging on Climate Policy: Although H2KOREA has not recently disclosed its position on the need for climate action and policy in its top-line messaging, the association appears to have previously taken positive positions on the issue. In a September 2021 op-ed article in Today Energy, H2KOREA appeared to support the 2050 Carbon Neutrality Scenario of the South Korean government, stating that the policy would predict “major changes in the existing fossil fuel-based industrial structure” and give a “policy signal” on companies’ investment directions. In the same article, the association supported the South Korean government’s 2050 carbon neutrality target.
Engagement with Climate-Related Regulations: H2KOREA appears to have minimal engagement with specific climate policies in South Korea, although it has shown limited instances of engagement with renewable energy legislation. In an op-ed article in Hankyung in September 2022, the Chairman of H2KOREA, Moon Jae-do, appeared to support expanding power purchase agreements (PPA) in the 10th Basic Plan for Electricity Supply and Demand.
The association also appears to engage in a limited fashion with the EU Carbon Border Adjustment Mechanism (CBAM). In a June 2023 op-ed article in Hankyung, the Chairman of H2KOREA stated that trade-restricting measures, including EU CBAM, would be a challenge to South Korean industry, but the association’s overall position on the climate ambition of the policy was unclear.
Positioning on Energy Transition: H2KOREA appears to actively engage with the transition of the energy mix. The association appears to support government measures to develop hydrogen production and hydrogen-based power generation, mostly advocating for hydrogen produced from fossil fuels. H2KOREA appears to support the increased provision of zero emission vehicles (ZEV) in South Korea.
In a July 2023 op-ed article in Hankyung, the Chairman of H2KOREA, Moon Jae-do, advocated for determining whether hydrogen is ‘clean’ based on CO2 emissions rather than color coding based on the method of hydrogen production. In doing so, Chairman Moon advocated for increased use of hydrogen produced from fossil fuels without clear conditions related to CCS or mitigating emissions, citing the cost of green hydrogen production. In an interview with the Asia Business Daily in July 2023, Chairman Moon stated support for the use of hydrogen produced from fossil fuels in carbon-intensive industries with some mention of the need for CCS technology, citing the technological difficulty of mass-producing green hydrogen. As reported by Asia Today in May 2023, the Chairman of H2KOREA advocated to increase the use of hydrogen in power generation as a complementary energy source to oil, that would allow South Korea “to continue the oil industry.”
In a May 2023 op-ed article in Hankyung, the Chairman of H2KOREA requested government support for measures to increase ZEV use, including converting conventional gas stations to electric or hydrogen vehicles charging stations. As reported by Today Energy in March 2023, the association supported the production and supply of hydrogen produced from renewable energy, but it did not state the need to increase renewables and reduce fossil fuels in the energy mix. At an October 2022 meeting held by the Ministry of Trade, Industry and Energy (MoTIE), H2KOREA appeared to support developing hydrogen with nuclear and renewables in South Korea and requested government support for related technology development.