Amsterdam-based APG Asset Management, a subsidiary of Dutch pension fund administrator APG, warned in a letter to the South Korean government that its failure to scrap a plan to build coal-fired power plants here will constitute a “significant risk factor” to its investment in Korea.
The letter, disclosed by Seoul-based nonprofit Solutions for Our Climate Wednesday, involves three plants with a combined power capacity of 6.3 gigawatts under construction in Gangwon Province.
The private-run power stations will pose a latent threat to the nation’s industries in the near future amid its endeavor to achieve carbon neutrality, Park Yoo-kyung, head of responsible investment & governance, Asia Pacific, at APG Asset Management, wrote in the letter to a presidential panel sent Tuesday.
“In the face of the climate crisis, coal-fired power plants will inevitably plague the Korean economy and the future of mankind,” read the letter written in Korean. “Korea’s greenhouse gas emissions will pose a significant burden on not only the private-sector participants but also other domestic businesses in the export-driven country.”
Failure to the coal phaseout will incur a substantial cost of offsetting carbon emissions and operational losses starting no later than 2030, Park added.