One of South Korea’s largest conglomerates is facing a backlash from activists after it pledged to end a major Australian liquefied natural gas deal and pledge to suspend new oil and gas investments abroad.
One of the leading Asian oil producers, SK Group inspection, electric vehicle batteries և: computer chips, comes at a time when activists are turning their attention to foreign oil and gas projects valued at more than $ 100 billion. successful campaigns Stop companies և investing in coal in countries.
Environmental groups say SK’s decision in March to spend $ 1.4 billion on the offshore Barosa-Caldita gas field runs counter to a November promise. refuse new investments in fossil fuels, The promise of SK, Korea’s third largest group, was part of the environmental, social and governance investment axis, led by its և largest shareholder, Chey Tae-win.
“The huge amount of greenhouse gas emissions from the Barossa-Caldita project will cast serious doubt on the SK Group ESG initiative, which, more importantly, will undermine global efforts to mitigate climate change by reducing greenhouse gas emissions,” Chi said in a letter. by dozens of South Korea, Australia and other international environmental groups, including Greenpeace.
The SK power unit said the development would reduce “almost all” carbon emissions by using carbon capture and storage. New technology trapping CO2 – those pipes in deep underground reservoirs, like buying carbon loans.
“Our investment was made on the condition that LNG be developed in an environmentally friendly, carbon-based way,” said SK E&S.
Chay, who oversees the group’s more than $ 200 billion in assets, oversaw years of operation SK portfolio adjustmentincluding billions of dollars in oil, gas exploration, and retail assets.
Barossa-Caldita, the Timor-Leste project led by Australian manufacturer Santos, is expected to supply LNG to South Korea for 20 years from 2025. project since 2012.
Activists have described the SC’s claims as a “huge green wash” without carbon-free LNG, a natural gas that has been frozen to allow it to be shipped.
“So-called CO2-free LNG. “Not only is it grossly misleading, it has no economic or technical feasibility. “Any attempt to clean up green fossil fuels with unspecified CCS software that has no technological or economic viability is unacceptable,” the letter said.
The dispute comes amid growing pressure on the oil and gas sector as governments promise to reduce carbon emissions,
International Energy Agency warned last month that in order to keep global warming under control, all new oil and gas exploration projects must be stopped this year; multimillion-dollar cost increases on low-carbon technologies are urgently needed.
Last year, South Korea was the eighth largest emitter of carbon, receiving only 5 percent of its electricity from renewable sources. It is the country are struggling to show how to achieve President Moon Jae-in’s promise to achieve carbon neutrality by 2050.
Many companies and policymakers believe that LNG is a transitional fuel for coal-dependent economies such as South Korea.
However, environmentalists say that in addition to final carbon emissions, LNG also emits significant amounts of greenhouse gases during processes such as extraction, processing, and transportation.
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