Understand the opportunities and crises in Korea amidst the corporate-led renewable energy revolution.
- Core concepts of RE100 and real implementation cases from global companies
- The current state of K-RE100 and the structural dilemmas faced by Korean companies
- Practical alternatives to avoid greenwashing risks and achieve sustainable RE100
What is RE100? Everything about the Global Standard
“Let’s make 100% of the electricity used by companies renewable!” RE100 has become an initiative that sets the standard for global business. It acts as a trade barrier directly linked to corporate survival, going beyond a simple environmental campaign.
Launched in 2014 by the non-profit organizations ‘The Climate Group’ and ‘CDP’, this campaign opened a new paradigm where companies voluntarily participate to drive the growth of the renewable energy market, rather than relying on government regulations.
Core Rules of RE100 and the Principle of ‘Additionality’
The goal of RE100 is clear: a public commitment to transition 100% of electricity usage to renewable energy by 2050 at the latest. Participating companies must transparently report their implementation results annually and adhere to interim targets of 60% by 2030 and 90% by 2040.
A particularly important aspect is the ‘Additionality’ principle. Starting in 2024, only electricity produced from power plants built within the last 15 years will be recognized. This is to ensure that corporate investments do not merely purchase certificates from outdated power plants but actually contribute to increasing new renewable energy facilities. This principle is key to ensuring the credibility of RE100.
Global RE100 Trends: How Do Leaders Move?
As of the end of 2023, over 424 companies worldwide have joined RE100, creating a massive trend. Among them, Korea has 36 companies participating, ranking 4th globally, achieving quantitative growth, but there are many qualitative challenges to address.
Apple, Google, BMW: The Power Driving Supply Chains
Behind the success of RE100 are the bold leadership of innovative companies like Apple and Google. Apple achieved 100% transition back in 2018 and now requires its suppliers to also join RE100. This is the main reason why Korean companies like Samsung Electronics and SK Hynix have jumped into RE100.
Car manufacturer BMW is also sending a strong message: “No deal if you can’t meet RE100.” In fact, some domestic parts suppliers have had contracts canceled for failing to meet these standards, demonstrating that RE100 has become a matter of survival, not just an option.
A Similar Case: Taiwan’s TSMC’s Wise Strategy
The case of Taiwan’s TSMC, which is central to the semiconductor industry, offers significant insights for Korea. TSMC has advanced its RE100 goal to 2040, ten years ahead, with full support from the government. The Taiwanese government is encouraging TSMC to build new factories next to large offshore wind farms, linking power demand and supply to enhance stability. TSMC’s case illustrates that achieving RE100 in the semiconductor industry requires not just corporate efforts but also a combination of national strategies and support.
The Light and Shadow of K-RE100: Ambitious Start, Harsh Reality
In line with the global RE100 trend, the Korean government introduced the ‘K-RE100’ system in 2021. While it successfully lowered the participation threshold for small and medium-sized enterprises and public institutions, serious contradictions exist behind this quantitative expansion.
Strange Paradox: 100% Abroad, 9% at Home?
Domestic giants like Samsung Electronics and SK Hynix have already achieved or are close to achieving their RE100 goals in regions with well-established renewable energy infrastructure like the U.S. and Europe. However, the performance of their operations in Korea is dismal. The domestic implementation rate of Korean companies that joined RE100 is only about 9%, far below the global average of 53%.
The domestic implementation rate of Korean companies for RE100 is significantly lower than that of their overseas operations.
This is clear evidence that it is not a lack of will from our companies, but rather that the environment for implementing RE100 in Korea is extremely poor.
Table 1: Summary of Major Korean Companies’ RE100 Achievements (as of 2023)
| Company/Group Name | Overall Achievement Rate (%) | Domestic/Overseas Achievement Rate (%) |
|---|---|---|
| Samsung Electronics | 31.4 | 24.8 (DS) / 93.4 (DX) |
| SK Hynix | 30.0 | 30.0 / 100 |
| LG Energy Solution | 56 | N/A |
| LG Innotek | 61 | N/A |
What is the Best Way for Korea to Achieve RE100?
So, what are the ways for Korean companies to achieve RE100? Currently, there are four methods, each with its own advantages, disadvantages, and risks that must be clearly understood.
- Direct Investment (Self-Generation, Equity Investment): Building power plants, such as installing solar panels on factory roofs, which can be the most reliable and cost-effective in the long term.
- Power Purchase Agreements (PPA): Entering into long-term contracts with power producers to purchase electricity directly. This is considered the most trusted ‘gold standard’ internationally as it contributes to the construction of new power plants.
- Certificate Purchase (REC): Purchasing a ‘certificate (REC)’ that proves electricity was generated from renewable sources. It is convenient but criticized for having low ‘additionality’.
- Green Premium: The easiest method, paying extra to the Korea Electric Power Corporation (KEPCO) to receive a ‘renewable energy usage certificate’. However, there is no guarantee that the money will be used for new power plant construction, leading to a critical flaw of not being recognized internationally as a greenhouse gas reduction achievement.
Table 2: Analysis of K-RE100 Implementation Method Strategies
| Category | Additionality Contribution | Strategic Risk |
|---|---|---|
| Self-Generation | Very High | Low (Long-term cost stability) |
| PPA | High | Low (Price stability, high reliability) |
| REC Purchase | Medium/Low | Medium (Price fluctuations, additionality controversy) |
| Green Premium | Very Low/None | Very High (Greenwashing risk) |
The Dilemma of Korea’s RE100 and the ‘Greenwashing’ Controversy
The reason Korean companies are flocking to the easy ‘Green Premium’ instead of PPA or self-generation is clear: supply shortages, high costs, and stringent regulations.
As a result, a distorted structure has emerged where a staggering 98% of K-RE100 implementation is procured through green premiums. This hinders market growth by blocking new investments, leading companies to continue purchasing ineffective certificates at high prices in a vicious cycle.
Ultimately, the anticipated issue has occurred. In March 2025, a climate organization reported POSCO and SK Group to the Fair Trade Commission. They claimed that advertising green premium purchases as equivalent to actual greenhouse gas reductions constituted ‘greenwashing’. In my view, this incident symbolizes that a strategy reliant on green premiums can be a ’ticking time bomb’ that could undermine a company’s reputation at any moment.
Is the CFE Initiative an Alternative or Confusion for RE100?
In this situation, the Korean government has proposed the ‘Carbon-Free Energy (CFE) Initiative’, which includes nuclear and hydrogen as alternatives. The problem is that CFE conflicts with RE100, as RE100 does not recognize nuclear energy as renewable. If our companies rely solely on CFE standards and receive a notification from global clients like Apple or BMW stating, “We do not recognize that,” they could face serious risks of being excluded from the supply chain.
Conclusion: What Should Korea Do?
For Korea, RE100 is no longer an option but a matter of survival. Urgent efforts from companies, the government, and society are needed to bridge the vast gap between ambition and reality.
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Key Summary
- Corporate Tasks: Companies must break free from dependence on the short-term convenience of ‘Green Premium’ and boldly invest in reliable methods like PPA or self-generation. This is the only way to avoid greenwashing risks and gain true value recognition.
- Government Role: The government must focus all policy efforts on ‘activating the PPA market’ by abolishing unreasonable regulations and enhancing financial support to facilitate easier access for companies to PPA. Additionally, clear guidelines are urgently needed to resolve the confusion companies face between RE100 and CFE.
- Social Cooperation: The ‘Integrated PPA’ model, which bundles the demand of various small and medium-sized enterprises to collectively enter into PPAs, should be activated, and tailored support for SMEs should be significantly expanded to ensure the stability of our industrial ecosystem.
For Korea to turn the significant challenge of RE100 into an opportunity for sustainable growth, everything depends on how quickly and boldly it can reform its outdated domestic energy system.
References
- Overview of RE100 k-re100.or.kr
- [Monthly Insights August Issue] Transition to Renewable Energy: Global RE100 Status and Insights unglobalcompact.kr
- Analysis of RE100 Status and Renewable Energy Procurement Trends energy.or.kr
- International RE100 Trends and Short-term Outlook - Korea Energy Economics Institute keei.re.kr
- [Contribution] Starting from ‘Legal Compliance’ in Supply Chain Management for SMEs - ZDNet Korea zdnet.co.kr
- RE100, Did Samsung and Apple Start? Complete Overview of Meaning, Status, and Participation Methods - Energy News blog.haezoom.com
- [Planning] Google and MS’s ‘100% Renewable Energy Transition’ AI Carbon Neutrality Competition - Incheon Today incheontoday.com
- [Exclusive] ‘RE100 Invasion’ from Europe… Korean Parts Suppliers Cornered by Green Protectionism - Hankyung hankyung.com
- TSMC is Outpacing Samsung - Hankook Ilbo hankookilbo.com
- [On-site] TSMC Factory Next to Solar and Wind Power… Taiwan Semiconductors, Confident in RE100 - Hankyoreh hani.co.kr
- Samsung Electronics’ Renewable Energy Transition Rate, Significant Differences by Sector… DX 93.4% vs. DS 24.8% - Daily Korea daily.hankooki.com
- SK Hynix Sustainability Management Report 2024.pdf - Listing Disclosure System (KIND) kind.krx.co.kr
- Current Status and Challenges of RE100 Response for Manufacturing Export Companies k-re100.or.kr
- “POSCO and SK, Green Premium is Greenwashing” First Report to Fair Trade Commission - Hankyoreh hani.co.kr
- Directions for Improvement of the PPA System forourclimate.org
- Current Status and Challenges of RE100 Response for Manufacturing Export Companies - Korea International Trade Association kita.net