South Korea’s National Assembly Passes Landmark Energy Transition Bill

South Korea’s National Assembly passed a sweeping energy transition bill on Tuesday, committing Asia’s fourth-largest economy to achieving carbon neutrality by 2040 — a decade ahead of the government’s previous target.

The legislation, which cleared parliament in a 189-72 vote, mandates that at least 60 percent of the nation’s electricity come from renewable sources by 2035, and directs state-owned Korea Electric Power Corporation (KEPCO) to phase out its remaining coal-fired plants by 2032.

A Turning Point for Korean Energy Policy

“This is a historic moment,” said Rep. Kim Soo-yeon, chair of the National Assembly’s Environment and Labor Committee. “Korea is signaling to the world that we are serious about our climate commitments — and that green growth is the future of our economy.”

Opposition lawmakers raised concerns about rising household electricity bills and the reliability of grid supply during winter peak demand. The Democratic Party countered that the economic benefits of the energy transition — including an estimated 300,000 new jobs by 2035 — outweigh transition costs.

International Reaction

The United States and European Union both welcomed the bill. The EU’s ambassador to Seoul called it “a landmark step” that would strengthen South Korea’s position in upcoming global climate negotiations.

South Korea is the world’s seventh-largest emitter of greenhouse gases. With this legislation, it joins a growing list of Asian economies — including Japan and Taiwan — that have set ambitious mid-century decarbonization targets.

Implementation Timeline

The Ministry of Trade, Industry and Energy will publish detailed implementation regulations within 90 days. A new 15-member Energy Transition Commission, comprising government officials, industry representatives, and civil society experts, will oversee progress and report to parliament annually.

Environmental groups praised the bill while urging the government to ensure a “just transition” for workers in coal-dependent communities, particularly in South Chungcheong Province, home to Korea’s largest coal-fired plants.