Contributing to Baek Jong-geun, CEO of the Korea-U.S. Industrial Cooperation Association (KUICA), the Ministry of Climate should support research on climate and energy policies of key ministries for future generations and research governance on the role of energy industry promotion functions.
With the launch of a new government, the Ministry of Climate, Energy, and Environment—or what many refer to as the “Ministry of Climate”—has officially begun its work. This ministry is now tasked with a multifaceted mission: addressing climate change, reducing carbon emissions, preserving the environment, and fostering the energy industry to support corporate growth. Current global challenges, such as an increase in energy demand and instability within the global energy supply chain, notably complicated by the rise of AI-driven data centers, make it essential for this ministry to develop robust policy frameworks. These frameworks must not only address today’s challenges but also consider the sustainability and health of our planet for future generations.
It’s crucial to understand that merely reorganizing the existing structure won’t yield the desired outcomes. Stability in policy and innovation at a structural level must be achieved concurrently. Over the years, Korea has seen its energy policies shift between various ministries—from the Ministry of Commerce, Industry and Energy to the Ministry of Trade and Industry. In stark contrast, the United States has benefitted from a stable framework since the establishment of the Department of Energy (DOE) in 1977, which has ensured consistency in energy policy. South Korea, too, needs a resilient approach that can weather political changes, allowing for consistent support of medium- to long-term policies and industrial growth.
One significant area of development is the research capabilities surrounding climate and energy policies. Currently, institutions like the Korea Energy Agency focus on renewable energy and energy efficiency, while the Korea Energy Economic Research Institute tackles broader macro-energy policies and data. However, there’s a notable gap in the integration of these approaches with a comprehensive strategy for the climate and energy sectors. By looking at national research institutes under the DOE in the United States—such as Lawrence Berkeley National Laboratory, Sandia National Laboratories, and Argonne National Laboratory—it becomes clear that simultaneous tech development and policy research yield actionable plans. This model has important implications for Korea, which needs a cohesive vision encompassing both technological innovation and applicable policy frameworks.
Another critical aspect lies in promoting the energy industry itself. While Korea has excelled in various sectors such as renewable energy, electricity, and nuclear power, small and medium-sized enterprises often feel sidelined in a marketplace dominated by larger corporations. To thrive on a global scale, these smaller entities require robust support systems that include government-level initiatives like overseas certification assistance, international collaborative R&D, and specialized talent training programs. Observing the experiences of countries like the United States and Germany, it becomes evident that dedicated support for energy promotion is essential to fostering innovation and competitiveness.
Moreover, enhancing research governance is vital. For the energy industry, mid- to long-term infrastructure innovation hinges on having a system that allows research findings to effectively inform policy decisions. As seen with the DOE’s alignment of strategic R&D efforts with practical projects across its 17 affiliated research institutes, Korea should aim for similar cohesive governance within its research institutions under the Ministry of Climate, Energy, and Environment. Currently, while major energy public enterprises are integrated into a management framework, the strategic oversight within research institutes still lack the agility necessary for quick innovation and response to changing circumstances.
The establishment of the Ministry of Climate, Energy, and Environment presents a promising opportunity for recalibrating Korea’s energy policies and strategies. However, for this initiative to be genuinely transformative, it’s imperative to prioritize policy stability alongside the enhancement of research and promotional functions. Otherwise, South Korea risks falling short in the global race toward a sustainable energy future.