South Korea classifies LNG as green

South Korea published a new taxology on December 30 for what investments can be considered "green", including LNG but excluding nuclear power.

Imported LNG accounted for 25.9% of South Korean power generation in 2019, but its share is forecasted to grow to 32% by 2034 primarily at the expense of coal-fired power generation. Nuclear energy is also a key part of the mix, with a share of 25.6% in 2019, but this is expected to shrink to 10.4% by 2034 following a rapid deployment of renewables.

LNG will be key for transitioning the South Korean economy from dirtier fuels such as coal, the ministry said. LNG-fired power plants will be considered until 2035 as long as their greenhouse gas emissions are no more than 340 grams of CO₂ equivalent/kWh, and provided they have a plan in place to reduce emissions to an average of 250 grams over their working life.

The country plans to update its green classifications every two or three years and will consider including nuclear power in the future depending on global trends, the ministry said. It has also labelled blue hydrogen, produced from natural gas, as green.

The European Commission has similarly proposed including gas in its taxonomy for sustainable investment, as well as nuclear power, though not all member states are happy with its recommendations.