The climate crisis is not a threat but an opportunity to create new industries and drive economic growth, a leading academic argued Friday.
Hong Jong-ho, a professor at Seoul National University's Graduate School of Environmental Studies, made the case at the "KPC Humanities Travel" lecture series. The Korea Productivity Center (KPC) hosted the event at Lotte Hotel in Sogong-dong, Seoul.
Hong drew on South Korea's past success in reversing widespread deforestation — a national crisis overcome in a relatively short period — as a model for climate action. He said addressing the climate crisis similarly requires national capacity and social solidarity, and is achievable when government policy, corporate technological innovation and public participation work together.
"It is clear that the climate crisis poses new risks for businesses and industries," he said. "If the damage caused directly by climate change — heatwaves, floods, droughts — constitutes 'physical risk,' then the costs and structural shifts involved in moving from a carbon-based economy to a decarbonized one represent 'transition risk.'"
He said South Korea faces a heavier burden than many other advanced economies because its growth has been driven by exports and manufacturing, leaving it with a high share of energy-intensive industries. Carbon neutrality, he added, has moved beyond a simple environmental policy to become a core challenge that shapes corporate investment, finance, supply chains and export competitiveness across the board.
He said what is needed is a "twin transition" — the convergence of AI transformation and green transformation. "We should view the AI transition and the green transition not as separate trends but as a closely linked twin transition," Hong said. "The expansion of AI data centers and the semiconductor industry brings enormous electricity demand. AI competitiveness therefore depends not simply on boosting computing power, but on how much efficiency can be achieved with less energy."
He also predicted that AI, drones and digital technology would accelerate the green transition and open up new industrial opportunities. Using drones to inspect and maintain offshore wind facilities, for example, shows how digital tools can cut costs and improve the operational efficiency of renewable energy. Ultimately, he said, how effectively AI and energy technology are combined will determine future industrial competitiveness.
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