Korea’s Green Economy Agreement Roadmap: A Strategy for Climate Action and Economic Growth

Jukwan Lee
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Jukwan Lee: KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)

No 25-30, World Economy Brief from Korea Institute for International Economic Policy

Abstract: The global trade environment is rapidly shifting due to the deepening climate crisis and escalating protectionism, characterized by major nations implementing unilateral trade measures—such as the EU's Carbon Border Adjustment Mechanism (CBAM) and the U.S.'s Inflation Reduction Act (IRA)—that prioritize domestic economic interests. In response to this trend, international cooperation is evolving into new forms, notably the Green Economy Agreement (GEA), which seeks to pursue both climate crisis response and economic growth simultaneously.  This study confirms the necessity of establishing a Korean-style GEA roadmap to effectively manage the evolving nexus of global climate-trade measures. Korea, with its large manufacturing sector, faces the critical dual challenge of achieving carbon neutrality while securing industrial competitiveness. GEAs serve as a crucial mechanism for enhancing strategic cooperation, ensuring climate policy continuity against domestic political volatility (acting as a 'policy anchor'), and generating new market opportunities. The key objectives of this study are: first, to systematically analyze the definition, status, and features of existing GEAs globally and in Korea; second, empirically evaluate the economic impact of GEA elements on Korean exports and the macroeconomy; and third, propose a comprehensive, phased roadmap and implementation strategy (short, medium, and long term) based on a strategic modular GEA model.

Keywords: Green; climate change; trade; agreement (search for similar items in EconPapers)
Pages: 11
Date: 2025-11-27
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