South Korea to decrease its reliance on coal

South Korea will cut its imports of Australian coal as part of a “green growth” strategy to reduce its use of fossil fuels and boost green investment, according to a report in the Sydney Morning Herald.

The strategy, which will feature at this month’s G20 leader’s summit in Seoul, is intended to offer a roadmap for emerging economies wanting to cut carbon emissions without harming their economies. It includes reducing fossil fuel’s share of the countries energy mix from 40% in 2008 to 30% in 2030. Energy from renewable sources will increase to 11% of the energy mix in 2020 and nuclear to 40%.

Although gradual, the move if potentially significant because South Korea is the second largest importer of Australian coal, taking 16% of shipments from Newcastle this year to October. It could also presage things to come as Japan, the biggest buyer of Australian coal, has also promised to join other developed countries in slashing carbon emissions to 25% of 1990 levels by 2020. Committing to large-scale reductions in carbon emissions could see Japanese coal demand drop by 60% on 2008 levels according to the IEA.

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