A proposed energy U-turn by South Korea’s new government would put the environment at the centre of energy policy, shifting one of the world’s staunchest supporters of coal and nuclear power towards natural gas and renewables.

The plan put forward by the new administration of President Moon Jae In would “boost a shift towards ‘green’ energy sources, in response to public concerns over air pollution and nuclear safety”.

If implemented, the ambitious plans by the world’s fourth-biggest coal importer and second-largest liquified natural gas (LNG) buyer will h ave a big impact on producers.

South Korea’s LNG imports could jump by more than 50% by 2030, while coal shipments could peak as early as next year.

However, any move to halt construction of a raft of new coal and nuclear plants, many of which are already being built, could threaten energy security and spark claims for massive compensation, which could push up electricity prices.

South Korea, which is Asia’s fourth-largest economy and gets 70% of its electricity from coal and nuclear, offers tax benefits to both sectors to ensure the availability of abundant electricity at affordable prices.

The Ministry of Trade, Industry and Energy will release its eighth annual report later this year.