Realistic Goals Are Good Stepping Stones
Voices are being raised for a policy shift in the Korean government’s Renewable Electricity 100 (RE100) goal. They say that it is necessary for the Korean government to switch to Carbon Free 100% (CF100), which includes utilizing nuclear energy.
According to data submitted to Rep. Han Moo-kyung of the People Power Party by the Korea Energy Agency on Aug. 20, a total of 414 companies were part of RE100 around the world as of July. RE100 is a campaign launched in 2014 by the U.K.-based environmental organization The Climate Group.
The RE100 campaign has seen a gradual increase in the number of companies signing up in the early years, but the number slowed down beginning in 2021. In fact, in the last three years, 66 companies signed up for the initiative in 2021, 58 in 2022, and only 21 as of July 2023.
Most of the companies that signed up were in industries with small electricity consumption. By industry, the service industry had the largest number of companies (148), followed by the food and beverage industry (33), the infrastructure industry (29) and the distribution industry (29). Only 97 manufacturing companies participated in the campaign. Usually, manufacturing companies are big electricity spenders.
U.S., Japanese, and U.K. companies accounted for more than half of the participating companies, with 227. Among them, companies in Europe, the region with the highest renewable energy penetration, were fewer than expected. This reflects that even companies in Europe, which are leading the world in the use of renewable energy, are faced with realistic constraints on achieving the goal of switching to 100 percent renewable energy.
European countries, excluding the United Kingdom, only had 84 companies, or less than 20 percent of all signatories. In terms of participating countries, only 13 out of 48 European countries are participating in RE100.
To be eligible for RE100 membership, companies must use more than 100 GWh of electricity per year or be a Fortune 1000 company or equivalent.
Of the Fortune 500 companies in the world, 80 are participating in RE100, representing a 16 percent participation rate. Also, 124 of Fortune 500 companies are based in the U.S., but only 25 of those have signed up for RE100. In Europe, there are 128 companies in the Global 500, but only 33 have joined the organization.
Nevertheless, Korea has 34 companies in the RE100 club, the fourth-largest number in the world after the United States, the United Kingdom, and Japan. After the first six SK Group affiliates joined RE100 in 2020, Samsung Group affiliates followed suit. Out of 21 RE100 companies that entered the RE100 club this year, Korea has the largest number of companies with seven, followed by Taiwan with four and Japan with three.
RE100 may not be appropriate for Korea with limits such as its industrial structure based on manufacturing, narrow land and climate and environmental characteristics, some experts say. Carbon Free 100 (CF100) is emerging as an alternative to RE1000. CR100 includes the utilization of nuclear power.
The Korean Ministry of Trade, Industry and Energy recently launched the CFE Forum to openly discuss the issue. CFE is short for “Carbon Free Energy” and refers to all energy sources that do not emit greenhouse gases. Unlike RE100, which requires the use of 100 percent renewable energy, CF100 is a policy alternative that utilizes nuclear power as a complement.
The global trend is also headed for CF100. The campaign is being spearheaded by UN-Energy. Its concept is to use carbon-free energy 24 hours a day, seven days a week. Since its launch in 2021, 122 companies and organizations were CF100 members as of June 30, 2022. Korea Hydro & Nuclear Power joined the initiative in March.