On September 11, 2025, leading academics and policy experts gathered at the Sejong MICE Center in Sejong, Korea, for the workshop ‘Toward a Low-Carbon Future: Cost of Inaction and Policy Responses.’ The event was hosted by KDI School of Public Policy and Management’s Sustainable Development Lab (SD Lab), in collaboration with Seoul National University and the University of Seoul.

The conference explored the urgent need for climate action, with discussions spanning the social costs of carbon, global climate initiatives, and national decarbonization policies. Among the highlights of the program was Session 2: The Economics of Climate Mitigation, chaired by Professor Kim Youngjae of KDI School. This session brought together cutting-edge research on the economic and financial implications of climate policy, focusing on both global and Korean contexts.

In the morning, Session 1 was chaired by Professor Yoo Joonghyun of Seoul National University. He opened the session with a presentation on the concept of the social cost of carbon and its applications in policymaking. Following this, master’s student Na Oyoung (Seoul National University) presented research on regional damages of climate change in Korea, emphasizing the uneven distribution of climate impacts across different areas. The session concluded with master’s student Choi Mihee (University of Seoul), who introduced city-level climate damage projections and explained how these findings could be integrated with broader estimates of the social cost of carbon.

After the session concluded, participants stepped outside the conference hall for a more informal gathering. At a nearby restaurant, they enjoyed a traditional nakji (octopus) dish while networking with participants. This meal provided an opportunity for lively discussion, allowing participants to continue exchanging ideas on how carbon cost estimates can inform effective policymaking.

Session 2 opened with Professor Park Sungho, who presented findings from an innovative survey experiment in Monrovia, Liberia. The study investigated  public perceptions of carbon offset projects. Surveying 2,000 participants across four treatment groups, the research revealed that negative framings had a stronger effect on attitudes than positive narratives. Importantly, the study highlighted how community ties to forest-related livelihoods and prior climate awareness moderated these effects. The findings underline that policy communication is not neutral, and that careful framing is essential for garnering long-term public support for global carbon initiatives.

Next, Kim Jiyong (MDP 2024) examined the intersection of international geopolitics and Korea’s growing green finance sector. His research addressed the impact of post Russia-Ukraine tensions on the Korean green bond market, which has been increasingly central to financing domestic and international climate projects. By analyzing bond yield fluctuations and investor confidence during geopolitical shocks, the presentation showed that climate finance remains vulnerable to external uncertainties. The findings underscored the importance of building resilient financial frameworks that can withstand geopolitical risks while sustaining investment flows into green growth.

Finally, Professor Kim Youngjae returned as a speaker to explore Korea’s own carbon burden and the challenges of balancing economic competitiveness with climate commitments. His analysis tied together insights from emissions trading systems, energy sector reforms, and fiscal policies, offering a comprehensive view of how Korea can align its domestic economy with global net-zero ambitions.

In session 3, Choi Hyungsik (Korea Environment Institute) delivered a policy-focused analysis of South Korea’s electricity sector and Emissions Trading System (ETS), with particular attention to the 4th National Allocation Plan. His presentation provided a detailed overview of the ETS’s design and mechanisms, including the significance of paid allowance ratios and Integrated Benchmarks in advancing greenhouse gas reduction targets. He emphasized that, compared with other international markets, Korea’s ETS is less market-driven and more shaped by government regulation and allocation rules. He further argued that raising the share of paid allowances would not necessarily curb coal and LNG power generation but could instead trigger higher electricity prices. Ultimately, he concluded that the emissions cap itself remains the most powerful regulatory instrument for steering Korea toward its climate goals.

Many KDIS students actively participated in the workshop, posing thoughtful questions and gaining new insights from their peers’ presentations. One freshman in the MDP program, who has a keen interest in environmental policy, shared that the event was especially meaningful—not only for the knowledge gained, but also for the chance to connect with students from other universities. As the program extended into the evening with dinner provided, participants had even more opportunities for discussion and exchange, making the workshop both an academic forum and a valuable networking occasion.