A turning point at COP30 for a major coal user
South Korea made a landmark energy decision at COP30 in Belem, Brazil. The government announced it has joined the Powering Past Coal Alliance, a coalition of countries, regions, cities and companies committed to ending unabated coal power. Membership comes with two major commitments. Seoul will stop building new power stations that burn coal without carbon controls, and it will retire 40 existing coal units by 2040. This is only the second national government in Asia to join the coalition after Singapore, and it arrives from a country that still relies on coal for close to a third of its electricity.
The move signals a strategic turn in a nation that operates the seventh largest coal fleet and ranks as the fourth largest coal importer. Coal has long been a backbone of Korean power supply, valued for steady output and price in the past. It also remains the single biggest source of greenhouse gas emissions in the power sector. By embracing the alliance, Seoul aligns national policy with a global trend that is accelerating as clean power costs keep falling and finance shifts away from coal projects.
Officials framed the decision as both climate action and a way to strengthen national competitiveness. The government paired the announcement with a new 2035 climate target to cut emissions by 53 to 61 percent from 2018 levels, a waypoint on the path to carbon neutrality by 2050. The pledge also comes as renewable energy sets new records around the world and as electricity systems prepare for a future dominated by wind, solar, storage and flexible resources.
What the pledge covers
The alliance focuses on ending unabated coal, meaning coal plants that operate without technologies that capture or significantly reduce carbon dioxide emissions. South Korea has committed to retire 40 coal units by 2040 and to cancel any plans for new unabated plants. The future of the remaining fleet will be set after public consultations on economic and environmental factors, with a detailed roadmap expected next year.
The policy applies to power generation. It does not cover coal use in industry such as steel, but it will reshape the national power mix. The ministry has described the phaseout as an opportunity to improve energy security, cut air pollution, and attract investment in cleaner power and in supporting industries such as grid equipment, batteries and clean hydrogen.
Officials said the precise schedule for the remaining units will be set through a public process. The ministry plans to publish the detailed roadmap in 2026 after reviewing system reliability, costs and regional impacts.
Why coal still matters in Korea
Coal still produced about 30.5 percent of Korea’s electricity last year, down sharply from 46.3 percent in 2009. The absolute fleet remains large, which explains why the policy carries weight beyond symbolic value. Coal generators provide steady power in the current system, especially during winter peaks and in periods of weak wind and solar output.
Coal combustion produces carbon dioxide, sulfur oxides, nitrogen oxides and fine particles. Burning coal to make 1 gigawatt hour of electricity typically emits around 888 tons of carbon dioxide. Particulate matter raises health risks, especially for children and seniors, and can travel across regions. Cutting coal generation would reduce both climate and public health costs that do not appear on monthly power bills.
The country also relies on imported coal, which exposes ratepayers to price swings and exchange rate risk. Price shocks during 2021 to 2022 and gas market volatility after Russia’s invasion of Ukraine reshaped views on security of supply. Reducing exposure to global coal markets can help stabilize costs while domestic renewables, storage and stronger grids expand.
How the Powering Past Coal Alliance works
The Powering Past Coal Alliance started at COP23 in 2017 under the leadership of the United Kingdom and Canada. It brings together national and subnational governments, businesses and financial institutions that commit to end unabated coal power. The coalition encourages a moratorium on new unabated plants and supports members as they design retirement schedules and policies that support workers and communities.
The alliance sets a direction that aligns with the Paris Agreement. Its analysis says members of the OECD and the European Union should complete coal phaseout by 2030, with the rest of the world following by 2040. Seoul city joined the coalition in 2020 as a subnational member and pledged to move off coal by 2030, and several other Korean provinces and cities have already signed on. On the same day Korea joined, Bahrain entered the coalition and pledged never to build coal power.
Kate White, the United Kingdom Minister for Climate at the Department for Energy Security and Net Zero and a co chair of the alliance, welcomed the decision.
As the world moves away from coal, South Korea has shown true climate leadership by joining this movement.
What will replace coal in the power mix
A successful coal phaseout requires a clear plan for what replaces coal in the dispatch stack. The government has outlined a pathway that lifts renewable energy, keeps nuclear as a firm low carbon source, and reserves gas for emergencies. By 2035, the national climate plan targets a reduction of 53 to 61 percent in emissions from 2018 levels. Planning documents for 2038 point to nuclear in the mid 30 percent range and renewables near 40 percent, which would lift the carbon free share toward 70 percent or higher.
Officials also described proposals to convert a dozen coal stations to run on hydrogen or on ammonia blends, with some units serving as capacity resources that operate in peak hours. These options can help provide flexibility, but they come with tradeoffs. Hydrogen production is still limited and expensive, and most hydrogen today is made from fossil fuels. Ammonia co firing in coal boilers can cut carbon dioxide at the stack, yet it raises questions about supply chains, nitrogen oxide control and cost.
Gas can respond quickly to swings in wind and solar output, but methane leakage in gas supply chains reduces climate benefits and international gas prices can be volatile. Civil society groups in Korea have urged the government to avoid locking in new gas capacity and to accelerate investment in renewables, storage, demand response and transmission upgrades instead. Several studies argue that the coal fleet should retire fully by 2035 to align with national targets, which would require faster timelines and stronger incentives.
Jobs, industry and a just transition
Policy makers linked the pledge to competitiveness and job creation. Renewable power, grid expansion and clean manufacturing can attract fresh capital, especially as multinational buyers ask for low carbon electricity for their supply chains. Domestic industries that move early can win orders for components, grid control systems and battery materials.
Kim Sung hwan, the Climate Minister leading the Korean delegation at COP30, emphasized these benefits in public remarks.
The coal phaseout is not only necessary for the climate but also beneficial for energy security, corporate competitiveness and job creation.
Delivering those gains will depend on a just transition plan that supports workers at coal plants and in coal supply chains. Measures could include retraining, local investment funds, and incentives to site new clean energy factories and grid projects in affected regions. Clear timelines help communities and businesses plan ahead.
Challenges, costs and the timeline ahead
The government confirmed 40 retirements by 2040 and said the rest will be decided after public consultation on economic and environmental feasibility. Officials plan to publish a detailed roadmap next year. That process will have to address electricity reliability, affordability and the pace of permitting for new lines and storage.
Korea has already cut coal’s share of power to about 30 percent, yet replacing the remaining output will require large additions of wind and solar, faster interconnection, and better market signals for flexibility. Rules for demand response and storage participation can reduce peak demand and strain on the grid. Consumer programs that improve efficiency across homes and factories can lower bills while freeing up capacity.
A clear schedule for each plant, transparent procurement for renewables and storage, and steady grid investment can build confidence in the transition. The alliance framework gives Korea access to peers that have made similar shifts, which can speed learning on policy design and worker support.
Regional and global ripple effects
South Korea is a major buyer of seaborne thermal coal. The commitment to wind down coal power by 2040 signals weaker long term demand for exporters, including Australia, where Korean utilities have been among the largest customers. Market analysts expect the announcement to add pressure on other Asian buyers to publish their own phaseout schedules.
The pledge also has diplomatic weight. Korea was one of very few OECD members not in the alliance until now. Its entry sends a signal to partners in Northeast and Southeast Asia. China and India, the two largest coal consumers, are not coalition members. Even so, Seoul’s decision shows that a large industrial economy with a big coal fleet can now plan a managed exit.
Key Points
- South Korea joined the Powering Past Coal Alliance at COP30, becoming the second Asian government to do so after Singapore.
- The government will stop building new unabated coal plants and retire 40 existing coal units by 2040.
- The closure schedule for the remaining coal units will be set through public consultation, with a detailed roadmap expected in 2026.
- Coal supplied about 30.5 percent of Korea’s electricity last year, down from 46.3 percent in 2009.
- Korea set a 2035 target to cut emissions 53 to 61 percent from 2018 levels as part of its path to carbon neutrality by 2050.
- Future power mix plans lift renewables and nuclear, with gas kept for emergencies and some coal units proposed for conversion to hydrogen or ammonia.
- Officials say the shift will support energy security, competitiveness and job creation, while NGOs urge faster timelines and limits on new gas.
- The move carries regional and trade consequences, signaling weaker long term demand for thermal coal exports and nudging other Asian economies to publish phaseout plans.
