[EAI Working Paper] Prospects for Korea-US Cooperation on Energy and Environment: From an Oil-Natural Gas Alliance to Global Green New Deal

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Editor's Note

On November 13, 2020, the East Asia Institute (EAI) and the Brookings Institution jointly held the second online seminar in the series titled "Prospects for U.S.-South Korea Cooperation in an Era of U.S.-China Strategic Competition." In Session 2: Economy, Energy, and Environment, Samantha Gross stated that cooperation between South Korea and the U.S. on energy and environment has been almost "absent." The South Korean government will have to align its energy policy with that of the U.S., which means joining the Global Green New Deal initiative if the Biden Administration takes office. The form of carbon cooperation between the U.S. and China also matters; if the U.S. and China opt for high-carbon cooperation, Korea will increase its import of oil and LNG from the U.S., and if they shift to low-carbon cooperation, Korea will be under pressure to reduce carbon emissions as soon as possible.

Quotes from the Paper

Introduction

In June 2020, President-elect Joe Biden pledged that the U.S. would achieve carbon neutrality by 2050. In the UN General Assembly in September, President Xi Jinping promised that net carbon emissions would be zero in China by 2060. On October 26, Prime Minister Yoshihide Suga stated that Japan would achieve carbon neutrality by 2050. Two days later, President Moon Jae-in announced that Korea would achieve carbon neutrality by 2050. The EU, which had already declared the European Green Deal in 2019, is seeking cooperation with the U.S. As a result, hope has emerged for a Global Green New Deal.

The Development of Clean Energy Cooperation under the Obama Administration

Energy cooperation between the U.S. and China began when diplomatic relations were established in the late 1970s. During the late twentieth century, the scope of bilateral cooperation was limited. Amid the oil crises of the 1970s and 1980s, both countries set their energy policy goals to procure energy sources. Besides, there was little discussion on international cooperation because awareness about global warming was low.

Shift to Fossil Fuel Energy Cooperation under the Trump Administration

Unlike the Obama administration, the Trump administration did not align energy policies with environmental policies. The goal of energy policy was energy dominance (or energy independence/self-sufficiency). Although insisting that "energy production and environmental stewardship are not mutually exclusive," President Trump officially withdrew the U.S. from the Paris Agreement in 2019. Since the outbreak of the trade war, President Trump has pushed ahead with decoupling – or even a new Cold War – through maximum pressure on China. Thus, almost all cooperation with China promoted by the Obama administration ceased.

Return to Clean Energy Cooperation?

China is the world's largest producer of CO₂, accounting for 29.34% of global emissions in 2017. The U.S. was the second-largest CO₂ emitting country (13.77%). The two countries produced nearly one-third of CO₂ globally. In this regard, Sino-U.S. energy cooperation could make an unprecedented contribution to the global environment. Since the trade war began in 2018, the U.S. and China have exchanged blame for global warming rather than shouldering the burden of CO₂ emission reduction.

Conclusion

The decades-long energy cooperation between the U.S. and China offers two lessons. First, energy cooperation has been influenced by security and economic relations. When the U.S. pursued an engagement policy with China, energy cooperation was among the key agendas of summit meetings and the Strategic Economic Dialogues. Second, disagreement on energy policy within the U.S. is significant. Democrats call for a Green New Deal, whereas Republicans deny climate change. This explains why U.S. energy policy has swung extensively.

Author’s Biography

■ Wang Hwi Lee is a Professor of Political Science and Dean of the Division of International Studies at Ajou University, Suwon, South Korea, where he has taught international political economy since 2006. He is the author of "The Politics of Economic Reform in South Korea: Crony Capitalism after Ten Years," "Pulling South Korea away from China’s Orbit: The Strategic Implications of the Korea-U.S. Free Trade Agreement" and "Crisis Management of the COVID-19 Pandemic in South Korea, Taiwan, Hong Kong, and Singapore." His research interests have focused on issues of the political economy of economic policy and institutions in East Asian countries. Lee received his Ph.D. from the London School of Economics and Political Science.