How South Korea’s 2035 NDC can drive private sector action and investment
Solutions for Our Climate, We Mean Business Coalition
South Korea’s next Nationally Determined Contribution (NDC) comes at a pivotal moment. With its economy highly dependent on manufacturing and exports, South Korea faces an important strategic choice: whether to lead or lag as global markets shift toward low-carbon production and trade.
Recent polling shows that 76% of South Korean business leaders want the Government to transition away from fossil fuels to a renewables-based electricity system within the next ten years: a clear signal that the private sector recognizes strong climate action as both an economic and trade imperative.
In August 2024, South Korea’s Constitutional Court issued a landmark ruling – the first in Asia to recognize citizens’ constitutional right to protection from the climate crisis. The Court found that the government’s 2030 NDC was insufficient to safeguard fundamental rights, citing its lack of alignment with fair burden sharing to future generations. The ruling obliges the government to strengthen future NDCs and South Korea’s mid- to long-term emissions reduction pathway, setting science-based and fair targets. It emphasizes that the 2035 NDC is not only an economic and environmental priority but also a legal obligation.
At the same time, shifting global trade dynamics and the acceleration of the global clean energy transition are reshaping industrial competitiveness worldwide. Countries are racing to lead in emerging low-carbon technologies, while global markets increasingly favor products with lower carbon intensity.
South Korea is well-placed to accelerate its transition from fossil fuels to renewable energy sources, support green industrial growth, and promote rapid electrification of industry and transport, securing its competitiveness in energy-intensive sectors such as steel, petrochemicals, batteries, and shipbuilding.
Solutions for Our Climate and We Mean Business Coalition are proud to present this briefing, which highlights how an ambitious and investible NDC for 2035 can drive private sector action and investment in South Korea. By providing clear policy direction and accelerating the clean energy transition, South Korea can strengthen its competitiveness, enhance its energy security, and build new engines of growth in industries such as batteries, solar and advanced manufacturing, securing a resilient and prosperous economy for the decades ahead.