Motie: Minister Moon attends IEA Ministerial Meeting

Trade, Industry, and Energy Minister Moon Sung-wook attended the International Energy Agency (IEA) Ministerial Meeting on March 23-24 to discuss energy security amidst the Ukraine crisis. At the session, Minister Moon joined in the official approval for release of oil reserves for the stabilization of global energy market. The IEA is an international body for energy cooperation consisting primarily of OECD member states, established for effectively responding to oil supply crises.

The event was attended by ministerial-level government officials of member states, association countries, and nations seeking full membership accession, as well as CEOs of energy industry organizations and the Energy Business Council.

As the first major energy meeting since the 2021 United Nations Climate Change Conference (COP26), this IEA meeting was all the more significant in that it was held in the presence of governments and companies of major energy producers and consumers. Moreover, Ukraine was extended a special invitation in light of Russia’s invasion for market impact discussions.

Regarding energy security, member states agreed that cooperation was needed for sustaining certain energy price levels for economic activities and carbon neutrality implementation. In respect to the Ukraine situation, IEA member states have officially approved the release of oil reserves to reduce market volatility and banned IEA participation of Russia and Belarus. In addition, Brazil and Canada have agreed to produce 0.3 million barrels of oil on a daily basis.

Out of the total 60 million barrels of oil reserves held by IEA member states, Korea plans to release 4.42 million barrels. Member states reaffirmed their expressed stance towards energy transition through more detailed discussions of implementation measures in achieving carbon neutrality worldwide.

Discussions centered on three key challenges countries need to overcome in order to reach their carbon neutrality goals, including private investment attraction, difficulties facing certain industry sectors, and critical minerals security.

Private investment is essential especially for areas like electrification and expanding hydrogen infrastructure, which require high initial investment. As for industries in which carbon reduction is realistically difficult, it was opined that international cooperation should be strengthened in areas involving hydrogen direct reduced iron, carbon capture, and low carbon technology development.

On critical minerals like lithium, nickel, manganese and rare earth metals, states agreed it was imperative to stimulate green development investments and realize supply chain transparency and resilience.

Minister Moon stressed that “Korea will actively participate with IEA and in the joint efforts of the international community for stabilization of the energy market in light of the Ukraine situation,” and that “Korea is willing to further assist in oil and gas cooperation measures in addition to the 4.42 million barrels of oil reserves set to be released.” He revealed that Korea is making large-scale investments in new energy industries including hydrogen, energy storage systems (ESS) and energy IT. Concerning the storage and recycling of critical minerals, Minister Moon stated that Korea is eager to share its own information and experience.

On March 24, the IEA Governing Board adopted a ministerial communiqué, through which the member states strongly denounced Russia’ illegal invasion of Ukraine and undermining of democratic principles, urging for a prompt withdrawal. The joint communiqué also addressed the importance of implementing carbon neutrality efforts founded on the Paris Agreement, proposing 10 major initiatives for oil and gas demand reduction, including energy source diversification and efficiency improvement.

The U.S., as this year’s IEA Chair, assessed the market impact of the halted Russia’s Caspian oil pipeline and proposed further discussions in responding to supply setbacks.

Minister Moon held various bilateral talks on the sidelines of the IEA Meeting, namely with IEA Executive Director Fatih Birol, Canadian Minister of Environment and Climate Change Jonathan Wilkinson, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez, Polish Minister of Climate and Environment Anna Moskwa, COP26 President Alok Sharma, and Australia’s Ambassador to OECD Brandon Pearson.