Home > Opinion > Columns

How Trump's climate policies affect Korea

Published: 11 Feb. 2025, 00:02

Shim Sang-min

The author is a professor at KAIST Graduate School of Green Growth & Sustainable Development.

From the very first day of his second term, U.S. President Donald Trump has made his policy direction clear by signing a series of executive orders. A closer look at his cabinet appointments and early directives offers insight into the climate, energy and environmental policies of his second administration.

The Trump administration is rolling back climate action. Through an executive order titled “America First in International Environmental Agreements,” the president has directed the United States to withdraw from the Paris Agreement once again, effectively removing climate change from the national policy agenda. Trump has also signed executive orders to halt permits for land-based and offshore wind projects and suspend the green subsidies established under the Inflation Reduction Act (IRA). His second term is expected to see weakened federal greenhouse gas regulations, increased skepticism toward climate science and a reduction in renewable energy support.

Instead, the Trump administration is prioritizing fossil fuel development. On his first day back in office, Trump declared a national energy emergency via executive order, aiming to expedite domestic energy production and infrastructure development. Notably, the resources included in this initiative are oil, natural gas, coal and uranium — while solar and wind energy have been deliberately excluded.

Trump has also issued the "American Energy Independence" executive order, pledging to support traditional energy exploration and production as part of his vision to secure U.S. energy dominance. His nomination of Chris Wright, CEO of Liberty Energy and a billionaire oil magnate, as Secretary of Energy, signals a significant policy shift. Wright, who has long operated a fracking company for shale oil and gas development, has publicly dismissed climate concerns, calling the climate crisis "nonsense."

Chris Wright, U.S. Secretary of Energy, testifies during a Senate Energy and Natural Resources Committee confirmation hearing on Capitol Hill, in Washington, Jan. 15, [REUTERS/YONHAP]

Further reinforcing this agenda, Doug Burgum, the former North Dakota governor and a strong proponent of shale oil and gas, has been appointed Secretary of the Interior. He will also chair the newly created National Energy Council (NEC), an entity that will oversee comprehensive energy policy. These moves indicate that the Trump administration will focus heavily on ramping up fossil fuel production.

Environmental regulations are also being loosened. Through the "American Energy Independence" executive order, Trump has directed a review of regulations that hinder energy development and ordered a streamlining of permitting processes to facilitate traditional energy projects. His administration is expected to weaken Environmental Protection Agency (EPA) regulations, including air pollution standards, fuel efficiency requirements for vehicles and energy efficiency mandates.

President Donald Trump holds an executive order announcing the United States' withdrawal from the Paris Agreement during the inaugural parade inside Capital One Arena in Washington on Jan. 20. [AFP/YONHAP]

Newly appointed EPA Administrator Lee Zeldin has signaled that the agency will serve as a tool to achieve U.S. energy dominance, rather than focusing on environmental protection.

Implications for the Korean economy
The impact of Trump’s second-term climate, energy and environmental policies on Korea will be multifaceted.

On one hand, increased U.S. fossil fuel production could benefit Korea’s energy security, as the country currently imports 94 percent of its primary energy supply. With a greater supply of U.S. crude oil and natural gas, Korea will have access to more favorable import conditions.

However, the temporary suspension of tax credits for electric vehicle (EV) purchases under the IRA, along with the elimination of the Advanced Manufacturing Production Credit (AMPC) for U.S. renewable energy manufacturers, will negatively impact Korean EV and battery manufacturers.

The Korean government must closely analyze these developments and devise strategies to minimize the negative impact while maximizing corporate interests through various forms of cooperation.

With Trump’s fossil fuel policies set to increase demand for energy transport vessels, Korea — a global leader in shipbuilding — must ensure that its shipbuilding industry benefits from this demand. Additionally, the government should facilitate the participation of Korean companies in fossil fuel infrastructure projects, such as oil drilling plants and LNG terminals.

Given the reduction or potential repeal of IRA-related tax credits, Korean firms investing in the United States should highlight their contributions to job creation, particularly in Republican-led states. A strong public relations strategy emphasizing the economic benefits of Korean investment in America could help preserve favorable conditions for Korean businesses.

Korea has legislated its 2050 carbon neutrality target, distinguishing it from the United States where climate policies can shift at the president’s discretion.

Despite a weakened U.S. role in global climate leadership, Korea should view this as an opportunity to strengthen climate cooperation with major economies like the European Union. Korea can also position itself as a leader in energy transition, capitalizing on sectors such as renewable energy, EVs and smart grids.

Trump’s return to the White House marks a dramatic shift in U.S. climate and energy policy, with fossil fuel expansion, environmental deregulation and climate skepticism taking center stage.

For Korea, careful strategic planning will be crucial in mitigating risks while leveraging new economic opportunities. With proactive policies, Korea can turn this transition into an advantage, reinforcing its position as a key player in the global clean energy transition.

Translated using generative AI and edited by Korea JoongAng Daily staff.