South Korea – One of the world’s largest consumers of thermal coal, South Korea has pledged to phase out its use. Analysts believe this move will cause significant problems for Australian fossil fuel exports.
Official participation in COP30
South Korea officially joined the Powering Past Coal Alliance during the COP30 climate talks in Brazil. Seoul thus joins a group of nearly 60 countries committed to ending the “continued” use of coal, which is primarily used for electricity generation.
South Korea is one of Australia’s largest customers for thermal coal. The move has been widely praised by climate activists, who see it as a “powerful message” about the actions needed to control global warming.
Warning to Australia
Analyst James Bowen, director of energy and climate consultancy Remap Research, asserted that South Korea’s commitment sends a “strong signal” to Australian policymakers and investors.
Bowen said: “Australia’s continued reliance on fossil fuel exports in the medium and long term is a risky strategy.”
A major client for Australia
According to the International Energy Agency, South Korea is the world’s fourth-largest importer of thermal coal, behind China, India, and Japan, and accounts for approximately 8% of global trade in this essential commodity.
Furthermore, South Korea is Australia’s third-largest fuel buyer, importing around 15 million tons annually, although demand has declined sharply in recent years. Analysts expect this pledge to lead to a further decrease in trade between the two countries in the future.
