Key Points
- Nearly 40% of South Korean companies in the RE100 initiative are struggling to source renewable energy.
- The number of companies facing this challenge has almost doubled in the last two years.
- High costs and limited procurement options are the main obstacles.
- The Federation of Korean Industries is calling for new government policies to support the transition.
Nearly 40% of South Korean companies that have pledged to use 100% renewable energy are finding it difficult to secure it. According to a new report, high costs and limited options are making it tough for these firms to meet their ambitious “RE100” goals.
The number of South Korean companies struggling to source renewable energy has nearly doubled in the last two years, from 39 in 2022 to 70 in 2024. This is a much higher number than in other major economies, such as the United States, China, and Japan.
The RE100 is a global initiative in which companies commit to powering all their operations with 100% renewable electricity. For South Korean firms, living up to this promise is proving to be a major challenge. The two main reasons cited in the report are the high cost of renewable energy and the limited number of ways to buy it.
In response to these findings, the Federation of Korean Industries (FKI) has sent a list of 20 policy recommendations to the government. They are calling for new financial incentives for companies that buy electricity directly from renewable power producers, as well as other measures to make it easier and cheaper to go green.
“It is necessary to improve systems and policy support to help Korean companies maintain international competitiveness while smoothly securing renewable energy,” an FKI official said.
Without these changes, South Korean companies could fall behind their global competitors in the race to a sustainable future.
