[Opinion] From Steel City to Green City: Pohang’s Vision for a Just Transition
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The Earth is suffering from a grave illness—climate change and environmental pollution. Extreme weather events, prolonged droughts, torrential rains, and mega wildfires are threatening our survival and undermining the foundation of sustainable development.
Global efforts to address the climate crisis gained momentum with the adoption of the United Nations Framework Convention on Climate Change (UNFCCC) in 1992 and the Paris Agreement in 2015. Countries around the world have since committed to achieving net-zero emissions by 2050 and are implementing diverse policies to reduce carbon emissions, the primary driver of global warming.
The European Union introduced the Carbon Border Adjustment Mechanism (CBAM) to reduce emissions from carbon-intensive industries such as steel, aluminum, and cement, while protecting domestic industries. The United States, during the Trump administration, withdrew from the Paris Agreement, scaled back subsidies for electric vehicles and batteries, and implemented high tariffs to protect domestic industries. Today, the world must pursue carbon neutrality, industrial competitiveness, and energy security simultaneously, all while preparing for the dawn of the artificial intelligence (AI) era.
Against this backdrop, the city of Pohang in Gyeongsangbuk-do hosted the World Green Growth Forum (WGGF) on May 14–15 to promote a vision of environmental protection and economic growth in harmony.
Pohang, a city that played a vital role in Korea’s industrialization through its steel industry, has been steadily strengthening its competitiveness by developing low-carbon and eco-friendly steel technologies for over a decade in response to the global net-zero transition. The city is also shifting its industrial structure toward green sectors such as hydrogen and secondary batteries.
Through its “Greenway Project,” Pohang has created over 760,000 square meters of green space—equivalent to 107 football fields. These urban forests have been registered under Korea’s emissions trading system, positioning Pohang as a leading carbon-neutral city.
Nevertheless, major challenges remain. Steel and secondary batteries are not only Pohang’s core industries but also pillars of Korea’s national economy. However, they now face a wave of new regulations such as the EU’s CBAM, the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CS3D).
The steel industry, which accounts for about 17% of Korea’s total greenhouse gas emissions, must drastically cut emissions to ensure environmental sustainability and maintain global competitiveness. POSCO’s hydrogen-based steelmaking initiative represents a potential solution, but with investment needs running into tens of trillions of won, it cannot be achieved by companies or local governments alone.
The secondary battery sector has also been facing challenges due to a recent slowdown in global demand. However, as electric vehicle adoption continues to rise, it is essential to create an environment where companies can focus on technological innovation.
To realize a green industrial future and energy transition, large-scale investments in advanced technologies and institutional reforms are urgently required. Major economies such as the U.S., EU, and China are already engaged in fierce global competition, backed by strong government support. Korea, too, must respond proactively—potentially through the enactment of special legislation to support the steel and battery sectors.
Carbon neutrality and energy transition are no longer matters of choice—they are strategic imperatives for survival. Pohang’s bold journey from a steel city to a green city deserves close attention. Just as the city once led Korea’s industrial rise, it may now chart the course for a new chapter in green growth.
Choi Jai-chul
Chairman, Climate Change Center
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