2020 Korea-WB Environmental Cooperation Forum

Global Cooperation Approach for Environmental Industry

Feb 20th 2020

Overview of Waste ManagementI

Limitations

II Achievements

III

New Paradigm : Circular EconomyIV

1. Volume-based waste fee system2. Waste charge on the producers of hard-to-recycle products3. Restriction on the use of disposables4. Restriction on over-packaged products5. Business waste reduction

6. Deposit/Refund system for beverage containers7. Promoting package reuse

8. Extended producer responsibility(EPR) system9. Eco-assurance system for WEEE and vehicles10. Promote food waste recycling11. Promote construction waste recycling12. Local-based recycling complexes

13. Expanding Waste to Energy facilities14. Eco-friendly energy town

15. Waste management and information system(ALLBARO)16. Waste import and export management17. Hazardous waste management18. Medical waste management19. Abandoned waste bond guarantee system

54.9

69.5

83.6 83.7 84.4

39.8

20.7

8 9.1 9

5.3 6.7 5.4 5.66.2

0

20

40

60

80

100

1996 2001 2006 2011 2015

재활용 매립 소각Recycling IncinerationLandfill

8

▪More than 50% of the wastes being incinerated or landfilled are in

fact recyclable.

- Raising the need to minimize the incineration and landfilling of recyclable wastes while

promoting recycling and energy recovery.

▪ Annual waste generation continues to increase.

- Waste generation increased 37% (2005 → 2015)

* Total amount of waste generated : 111 million tons(‘05) → 152 million tons(‘15)

▪ 15% of wastes from households and business sites still goes to landfill.

- Social conflicts frequently arise over construction of landfill sites

* Household waste landfill rate : 15.1%(Korea) / 1.1%(Denmark) (OECD, 2015)

Resource efficiency, Sustainable consumption & production

Need for new paradigm from the perspective of Sustainability

Goal 12: Ensure sustainable consumption and production patterns

Contents

Domestic and International Environment Trends

Global Cooperation of Environmental Industry – Significance and Achievement

Global Cooperation Programs for Environmental Industry

11

Global Cooperation Approach for Environmental Industry

(Global Envt Market Size) ’17, $1.2T → ’20, $1.336T Estimated

(CAGR) Compared to 3.64% during ‘11~’17, 3.61% is expected to grow after 2018

Source : EBI(Environmental business International, INC) Report (2017)

’17, $ 1.15 Trillion ’20, $1.336 Trillion Estimated

* CAGR : Compound Annual Growth Rate

(Unit : USD 100M)

12

(By Industry) Water 36.6%, Wastes 24.2%, Eco-Friendly Energy 20.5%, Air 6.3%

(Growth rate by Industry) Air 5.2%, Water 2.80%, Wastes 1.26%

Source : EBI(Environmental business International, INC) Report (2017)* CAGR : Compound Annual Growth Rate

<’17, Global Env’t Market Size by Industry> <’11-’20, Env’t Market CAGR by Industry>

13

Big Three Environmental Industries

The export volume of Korea’s environmental industry amounts to KRW 11 Trillion

in 2018, growing more than 6 times compared to that of 2006

✓Water, air and wastes industries account for 62% of Korea environmental industry as market leaders

* Waste is 31%, water is 25% and air is 6%

Level of Environmental Technology

✓ (National Level) Environmental technology capability is 78.6% against that of the most

advanced country, 4.5 yr of technology gap

✓ (Advanced Tech) Waste reduction & treatment tech, water resource integration mgmt

system tech, greenhouse gas reduction tech etc.

* 2016 Technology Level Evaluation Report (The Ministry of Science and ICT, 2017)

14

Contents

Domestic and International Environment Trends

Global Cooperation of Environmental Industry – Significance and Achievement

Global Cooperation Programs for Environmental Industry

15

① Sharing environmental policies and experiences

③ Mutual growth of environmental technologies and relevant industries

✓ Sharing environmental policy experiences ex) volume-rate waste disposal system, water & sewage advancement management system, water purification tech etc.

→ Solve environmental issues cheaper and faster by sharing know-hows and reducing trial errors !

② Applying suitable technologies based on national features

✓ Korea has experienced and overcame various environmental problems in the course of rapid economic growth

* Massive water/air/soil pollution, water scarcity, disconnected ecological axis, inflow of exotic species, chemical substance incidents etc.

✓ Customized tech and facilities are developed and applied based on each individual country feature

✓ Sharing environmental issues and global cooperation are key drivers for developing environmental technologies✓ Environmental technologies are a combination of various state-of-the-art tech such as mechanical, electronic, chemical and biological technologiesa

→ Encouraging mutual growth not just of environmental industry but also of new industries and Industry 4.0 like ICT, robots, drones

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Basic plan for EnvtImprovement

31 pjt in 26 cty(’07~)

Foreign Feasibility Study

187pjt in 59 cty (’08~)

Dispatch of Market pathfinder

47 cty (’09~)

UAE

Japan

Nicaragua

Angola

LibyaTunisia

Brazil

Colombia

Turkey

U.K Germany

China

Thailand

Russia

Ireland

PhilippinesMalaysia

Kuwait

Italy

Pakistan

USA

Tanzania

Vietnam

Indonesia

Cambodia

Azerbaijan

Uzbekistan

Mozambique

Mongolia

Algeria

Chile

Peru

Australia

Sri Lanka

Turkmenistan

Iran

Ghana Nigeria

Saudi Arabia

Switzerland

Romania

FranceBangladesh

Canada

Mexico

Conggo

India

Bulgaria 18.3%

46.2%

Asia

China

21.2%

Middle East/Africa

USA/Japan/EU

8.7%

5.6%

Wining 403 projects worth $5B(KRW 5.6T) in 82 countries during ‘09~’18

Latin America

Global Cooperation

185 pjt in 31 cty (’04~)

17

Contents

Domestic and International Environment Trends

Global Cooperation of Environmental Industry – Significance and Achievement

Global Cooperation Programs for Environmental Industry

18

(Project) Building HR N/W and providing overseas business opportunities by hosting consultation meetings, seminars inviting ordering partners

- (Budget) ’19, KRW 600M

- (Targets) Promising env’t pjt related gov’t, public org, ordering partners, decision-makers of buyers (facilities/equipment

- (Supports) Roundtrip airfare, accommodation expense, field tour, etc.

- (Contents) Forum, 1:1 pjt consulting, pjt briefing, excellent environmental facility tour etc

Discovery of overseas envtpjtand strengthening supports

for wining contracts through consultation meetings with

overseas promising orderers

- Invite Korea’s largest envt orderers

‘GGHK(Global Green Hub Korea) 2019

- High-level envt forum linked with foreign policies

Strengthening the support for winning PPP

- New 1:1 customized partnering meetings with

domestic PPP consortium(design, construction, fund,

operation) by inviting matured PPP project ordering org

Type 2012 2013 2014 2015 2016 2017 2018

Invitee120(Envt80)

227(Envt107)

270(Envt120)

194(Envt835)

149(Envt78)

127(Envt 73)

104(Envt 59)

Consultation

693cases, $23.5B

1,295cases

$107.3B

1,566 cases

$161,4B

761 cases$88,6B

971 cases$106,3B

1,022 cases$35,1B

631 cases$35,2B

Target Countries

45 56 53 44 43 38 39

19

(Project] Creating favorable conditions for K-company to expand abroad, establishing co-

work channels btw countries, discovering potential projects by supporting overseas

major target countries to make a basic plan for environmental improvement

- (Total budget/budget/pjt) ’19 KRW 2.7B / KRW650M~800M/pjt(3 cases/yr)* Totally financed by ODA Fund

- (Procedure)

Receiving LoI(ODA Target

Countries)STEP2 STEP4

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Vietnam Indone

siaCambo

diaTunisia Algeria

Bangladesh

Colombia

Sri Lanka

Kazakhstan

RussiaParaguay

Vietnam

- -Azerbai

janUzbekis

tanMongo

liaChile Mexico

Cost Rica

Brazil Thailand Iran Indonesia

- - - -Mozambique

PeruMyanmar

AlgeriaColum

biaSaudi

Mozambique

Ethiopia

- - - - - - Laos --

-

STEP5

* 2019 Target Countries: Uganda, Nepal. Senegal/ 2020 Target Countries: Laos, Mongolia, Uzbekistan

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Pjt PlanningAnnouncement

Budgeting

STEP3

Confirming Pjt Scope

(RoD)

Announcing& Selecting a performer

STEP1

Expansion of multilateral cooperative projects with MDB

- Develop multilateral pMaximize winning of contracts by co-working with MDB from the beginning

- rojects with MDB-KOR-Recipients

Improvement of commercialization by diversifying financing methods for main projects

- Making developed projects into loan-type projects (EDCF)

(Project) Relieving initial financial burdens of Korea’s promising environmental projects and

increasing the success rate by funding feasibility study expense of environmental

projects- (Total budget/budget/pjt) ’19, KRW 1.3B / Less than KRW 300M/Pjt (10cases/yr)

- (Procedure)

Type 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Pjt(Case)

14 19 23 20 20 22 21 15 10 13 12

Expense

(KRW100M)

9 14 17.4 13 13 15 15 13 13 13 13

Target (Countries)

9 14 19 16 13 19 17 12 9 10 11

Diversification of funding by pjtcope and stage

- Reduce corporate risks of massive pjt like investment/dev pjt

Expansion of feasibility study for MDB involved projects

Feasibility study at the initial stage of overseas new city dev pjt

- Kuwait, Saudi Arabia etc.

Pjt PlanningAnnouncement

STEP1

Applying & Submitting

STEP2

Selecting/Evaluating

STEP3

Agreement

STEP4

Managing & Evaluating Pjt

STEP5

21

(Project) Demonstrating of Korean technologies abroad, securing overseas references by funding

joint-research and pilot tests to meet local conditions- (Budget) ’19, 3.5M USD(Graded financial supports depending on pjt size within the budget)

- (Procedure)

Type 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Pjt(case)

24 29 33 29 30 28 30 32 25 20 20

Expense

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

3.5m USD

Target (Country)

3 7 9 11 12 15 13 13 11 7 10

Support for strategic overseas expansion areas and

regional diversification

- Intensive supports for “soil‧groundwater”, “harmful substance

replacement processes” with big market potential to go abroad

- Using the MDB N/W (IDB, AFDB) and 5 overseas env’t Industry

co-op centers to make strategic supports for emerging markets

like Latin America‧Africa

Pjt PlanningAnnouncement

STEP1

Applying & Submitting

STEP2

Selecting/Evaluating

STEP3

Agreement

STEP4

Managing & Evaluating Pjt

STEP5

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Ministry of Environment of the ROK working towards

Sustainable Development Goals

THANK YOU!! YOU