Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Korea Petroleum Association (KPA) has broadly negative engagement with climate policy in South Korea. KPA has engaged negatively on South Korea’s 2035 Nationally Determined Contribution (NDC) emissions reduction target. KPA has generally taken a negative position on the transition of the energy mix away from fossil fuels. However, in 2023-2024, KPA has actively supported government interventions, including incentives, for sustainable aviation fuel (SAF).
Top-line Messaging on Climate Policy: KPA appears to have limited recent engagement with top-line messaging on climate policy. According to an October 2024 Korea Chamber of Commerce and Industry (KCCI) press release, KPA supported carbon neutrality policy at the 2nd Industrial Sector Carbon Neutrality Policy Council, suggesting it should support the ‘actual transformation of the industry from a long-term perspective’ without clear positioning on a wider range of policy solutions or ambition level. In an Association News published on its website in June 2023, Park Joo-sun, Chairman of KPA, suggested ‘regulatory rationalization’ and the ‘system reorganization’ for circular economy, without clearly defining these terms.
Engagement with Climate-Related Regulations: KPA has actively supported government incentives for sustainable aviation fuel (SAF) in 2023-2024, while negatively engaging with South Korea’s 2035 Nationally Determined Contribution (NDC) emissions reduction target. According to a December 2024 Presidential Commission on Carbon Neutrality and Green Growth 2050 website material, at the 2035 NDC Conference, KPA supported policies incentivizing the production and uptake of SAFs for the transition to a low-carbon business structure. In an interview with Maeil Business in October 2024, Chairman Park emphasized the need for the government support on SAF such as promoting Hydrotreated Vegetable Oil (HVO) as a national strategic technology and providing groundbreaking tax benefits. In an April 2024 interview with Aju Business Daily, Chairman Park also suggested designating SAF technology projects as national strategic projects, mentioning “it is urgent to prepare more bold supporting policies”. However, at the 2035 NDC Conference in December 2024, KPA appeared not to support increased ambition for South Korea's 2035 NDC, emphasizing that maturity of carbon neutrality technology should be achieved first. In addition to this, according to an October 2024 KCCI press release, at the 2nd Industrial Sector Carbon Neutrality Policy Council meeting, KPA suggested setting a ‘realistic path’ for South Korea's 2035 NDC that reflects the speed and economic feasibility of technology development.
KPA engages with circular economy policies on recycling wastes without taking a clear position on it. At the 2035 NDC Conference in December 2024, KPA suggested deregulation of waste recycling business, while stating the importance of the government’s role in securing stable raw materials for resource circulation and securing demand for products produced from recycling resources. In an interview with Segye Ilbo in April 2024, Chairman Park supported the amendment to the Petroleum and Alternative Fuel Business Act that enables the use of recycled waste materials as raw materials, but it is unclear whether he supports implementing circular economy policies according to the waste hierarchy.
Positioning on Energy Transition: KPA has generally engaged negatively on the transition of the energy mix away from fossil fuels, occasionally engaging with Carbon Capture, Utilization and Storage (CCUS) and biofuels. In an interview with Kukmin Ilbo in November 2024, Chairman Park advocated for government support for the oil refining industry as it is a ‘national key industry’, considering energy security and national economic growth. Also, in an April 2024 interview with Segye Ilbo, Chairman Park stated the need for fossil fuels while emphasizing concerns around energy security and mentioning that “even in the era of eco-friendly energy, oil is a necessary energy resource”. Furthermore, as reported in Yeonhap News in June 2024, KPA appeared to advocate for developing new oil and gas fields in the East Sea of South Korea, which risks fossil fuel lock-in.
On the other hand, according to a December 2024 Presidential Commission on Carbon Neutrality and Green Growth 2050 website material, at the 2035 NDC Conference, KPA supported policies and incentives to develop CCUS technology in the fossil fuel sector without specifying its position on the need for an overall transition away from a fossil fuel-based energy system. Also, according to a December 2024 article in News1, at the 2024 Petroleum Conference, Chairman Park supported an increased role for bioenergy and biofuels in the energy mix without stating the need to transition to a renewables-based system.
This summary was last updated in Q1 2025.