It has been found that significant environmental and economic benefits could arise if major East Asian tech companies, including Samsung Electronics and SK Hynix, transition to 100% renewable energy by 2030.
On the 13th, the international environmental organization Greenpeace released a report predicting the benefits for 13 of East Asia’s largest tech companies, including Samsung Electronics, TSMC, SK Hynix, Samsung Display, and LG Display, should they adopt 100% renewable energy by 2030. The report is titled “Tech Companies Power Play: Cost-Benefit Analysis of Renewable Energy Adoption in East Asia’s Electronics Industry Supply Chains”.
The study found that among the surveyed companies, Samsung Electronics stands to gain the most significant environmental and economic benefits. If Samsung achieves its goal of converting to 100% renewable energy by 2030, it will reduce its greenhouse gas emissions by 148.59 million tons, which exceeds the greenhouse gas emissions of Seoul in 2021 (45.94 million tons) by more than three times. Additionally, Samsung is projected to save around $11.42 billion (approximately 14.4 trillion won) in costs in a single year by making this transition.
All 13 companies analyzed could achieve reductions greater than the total annual greenhouse gas emissions of the Netherlands in 2022 (approximately 167.85 million tons) if they utilize 100% renewable energy by 2030, resulting in savings of $19.09 billion (around 24.1 trillion won).
The study employed a Cost-Benefit Analysis (CBA) method to examine how the transition to renewable energy among tech companies that consume vast amounts of power would not only benefit the environment but also offer substantial economic advantages in combating the global temperature rise of 1.5 degrees Celsius.
Renewable energy is establishing itself as the most economical energy source. Many global specialized organizations predict that the price of carbon credits will rise significantly. Regulatory pressures to reduce carbon emissions are also increasing.
The research indicated that if the 13 companies achieve 100% renewable energy conversion by 2030, each company could save between $87.42 million (around 110.4 billion won) and $11.42 billion (approximately 14.4 trillion won). These economic benefits are derived from halting the use of fossil fuels, whose prices are expected to increase, while also reducing potential environmental costs such as carbon taxes.
Furthermore, besides Samsung Electronics, the economic benefits for three other Korean companies included in this study are also significant. SK Hynix is predicted to achieve savings of approximately $1.83 billion (around 2.31 trillion won), ranking second among the 13 companies. Following closely are Samsung Display and LG Display, with projected savings of around $1.49 billion (around 1.88 trillion won) and $1.32 billion (around 1.67 trillion won), respectively.
Dr. Liang Dong from the Energy and Environment Department at City University of Hong Kong, one of the authors of the study, remarked, “The findings highlight that responding to the climate crisis does not necessarily impose a burden on companies. As fossil fuel costs continue to escalate due to carbon tax stipulations and rising fossil fuel prices, manufacturers that succeed in achieving 100% renewable energy conversion by 2030 will gain substantial competitiveness through greenhouse gas reductions and cost savings.”
Meanwhile, the Ministry of Trade, Industry and Energy announced plans for new LNG and nuclear power plants to meet additional power demands from data centers and semiconductor factories, following the 11th basic electric supply plan announced on May 31. Earlier, on December 2023, during the 4th National Strategy for High-Tech Industry Committee, a plan to construct six LNG power plants to ensure power supply for the Yongin Advanced System Semiconductor Cluster was formalized. Samsung Electronics is set to be a tenant in this national industrial complex.
Climate and Energy Campaigner Yang Yeon-ho from Greenpeace stated, “Continuing to use fossil fuels like LNG signifies abandoning the opportunity costs worth tens of trillions of won associated with the transition to renewable energy. If TSMC achieves its RE100 goal by 2040, Samsung will already lag behind in competition starting from the operational date of the Yongin national complex.” He urged, “The Korean government should cancel the plan for LNG power plants in the Yongin national complex and work with Samsung Electronics to build a ‘carbon-neutral’ semiconductor cluster focused on renewable energy.”
Campaigner Yang emphasized, “By pushing ahead with building semiconductor factories, a large power consumer, in the congested metropolitan area, the government has unfortunately reverted to outdated strategies by proposing new LNG and nuclear power plants. What is urgently needed is the enhancement of national and corporate climate competitiveness. The government must focus on resolving issues related to renewable energy supply and grid operations, while companies should not postpone proactive investments toward achieving RE100 any longer.”
Since 2017, Greenpeace has been running campaigns urging the government and domestic tech firms to transition to renewable energy. The organization is conducting research on constructing a carbon-neutral semiconductor cluster in Yongin based on renewable energy and plans to release a report in the latter half of this year. The full report can be accessed through this link.
Lee Sang-jin daedusj@autodiary.kr