Korea's Green Growth Strategy

Korea‘s Green Growth

Strategy

: A Korean Approach on Green Growth

Climate Change and Development

Roundtable, Ljubljana, Slovenia

May 2011

Presidential Committee on Green Growth

Republic of Korea

Agenda

• Green Growth and Development : Revisited

• Korea‘s Low Carbon, Green Growth Strategy

Integrated National Frameworks

Review on YEAR 2010 and Plan for YEAR 2011

• East Asia Climate Partnership (EACP) : Our Regional Approach

Water for Green Growth

• Global Green Growth Institute (GGGI) : Our Global Approach

Global Green Growth Partnership

• Sustainable Development (United Nations)

– Economic + Environmental + Social Development

– UNCED(1992), WSSD(2002), RIO+20 (2012)

• Green Economy Initiative (UNEP & etc)

• Low Emission Climate-Resilient Development (UNDP)

• Green Growth (UNESCAP, 2005)

– By improving „ecological efficiency‟ (resource use efficiency +

pollution impact minimization)

Green Growth & Development : Revisited (1/2)

• Green Growth Strategy (OECD)– Green growth is about fostering economic growth and development

while ensuring that the quality and quantity of natural assets can

continue to provide the environmental services on which our well-being

relies. It is also about fostering investment, competition and innovation

which will underpin sustained growth and give rise to new economic

opportunities

• Green Growth (Denmark‟s Vision)

– Economic Development through Green Energy System Without

Fossil Fuels by 2050

• Roadmap 2050 (EU)

And, More to Come !

Green Growth & Development : Revisited (2/2)

• A New Economic Development Paradigm for Korea

– To Solve the Triple Crunch : Energy, Climate and Economy

• Energy Challenge : $140 Billion Energy Bill (97% imported & 83% fossil fuels)

• Climate Challenge : Average Temperature Rise of 1.7 C˚ (2 times faster)

• Economic Challenge : In the Nutcracker, Jobless & Slow Growth

• Characteristics

– Put in the Top National Agenda supported by Strong Political

Leadership

=> Presidential Committee on Green Growth = Climate Change Office +

Energy Commission + Sustainable Development Commission

– Full Integration into Government & Public-Private Partnership

And, Proactive Contributions of Korea in International Development Agenda

Korea‘s Low Carbon, Green Growth : Summary

Multi-crises of

environment &

resources

Environment emerged as

the core of future national

competitiveness

New alternative,

―Green Growth‖

Growth of world‟s

population &

Industrialization accelerate

Energy · Resource Crises.

Climate change drastically

increased Environmental ·

Economic · Social

problems.

National competitiveness

depends on the capability to

secure resources and

manage environment.

Developed countries

adopted strategy to utilize

green industry as new

growth engine.

Traditional „factor-intensive‟

economic growth faces

limitation.

Low carbon & environment-

friendliness are recognized as

the new strategic industry that

will lead future growth.

Background Green Growth

Background : A National Vision

Creating New 60 years (announcement of a new national vision in the 60th

anniversary of the founding of the Republic in August 15th 2008)

More than just a development strategy- changing people‟s behavior and way of thinking

- creating a new civilization

Next 60 years

Green growth

Last 60 years

Economic growth

Green Growth

Competitiveness

Enhancement of Country,

Economy and Cities

New National Growth through

New Growth Engine

Enriching Quality of Life through Job

Creation and Environmental

Improvement

Low

Carbon

Green

Growth

Responsible Member of the

International Community, Green

Korea

Objectives & Outcome Green Growth

VISION Low Carbon Green Growth

Fossil Energy Independent and Low Carbon Society

* Energy independence : (‘07) 30% →(‘12)37% →(‘30) 65%

Utilize Green Technology ∙ Industries as New Growth Engine

* Level of green tech. compared to developed countries : (‘07) 50~70% →(‘12)80%→(‘30)100%

Recognized as Green Korea

* EPI : (‘08)51st → (‘12) 30th →(‘30) 10th

VISION – Low Carbon Green Growth Green Growth

Green Growth National Strategy Green Growth

Green Growth Frameworks

Sustained Drive

Key role for the Presidential Committee on Green Growth

1. LegalFramework

Legislation ofthe Framework Act on Low Carbon, Green

Growth („2010.4)

2. Strategy& Plan

(5 Yrs Plan)Inherits the spirit of

the “Economic Development Plan”

in the 60~80s („2009.7)

3. National GHG Reduction Goal

30% reduction from BAU(„2009.11)

4. Green Budget

2% of GDP on

Green Growth policies

(„2009.1)

5. Green Technology

Development

“Core” of Green Growth through

Competitive Industrial Base

Integrated Approach To Achieve 3 Strategies & 10 Policy Directions

Composition

- 7 chapters and 65 articles- a basic act – it has priority over all relevant laws regarding Green Growth

Basic Act on Low Carbon Green Growth

Key provisions

1) legal ground for the Presidential Committee on Green Growth and mandates the committee to develop a national strategy for Green Growth.

2) mandates the government to foster and support green economy, green industry, and the transformation of conventional industry.

3) foster financing for green technology R&D and green investment, as well as, mandates

to promote environment friendly tax reform.

4) mandates government to set concrete targets for GHG emission reduction, energy saving,

energy security, and renewable energy supply.

5) mandates for mandatory reporting of GHG emission for businesses. Provides the legal

framework to introduce cap & trade system in Korea.

6) articles on environment-friendly land use, green building, low carbon transportation,

green consumption and production, and other issues related to sustainable development.

Green Growth

Green Growth National Institution Green Growth

운영협의회

PCGG Setting Policy direction &Monitoring

Green Industry

Policy CouncilClimate·

Energy Policy Council

Co-Chairs

Green life·

SD Council

29 Civil Experts

17 Ministers

Secretariat

Planning

& Co-ord.Energy

Climate

Change

Green

Tech

Green Life

SD

AgendasMeetings

Four Major Rivers‘ Restoration2nd(‘09.4)

Core Green Technologies

Develop & Deploy3rd(‘09.5)

Nat‘l Strategy &

5 year Implementation4th(‘09.7)

Green Growth Education 5th (‘09.8)

10 Policy Directions etc.1st(‘09.2)

7th(‘10.2)

Market Driven Green Growth 8th(‘10.7)

Int‟l Coop.

Co- Secretary Generals

6 Bureaus

Nat‘l GHG Reduction Goal6th(‘09.11)

Plans for 2010

The Presidential Committee on Green Growth (PCGG)

Water, Energy and Adaptation9th(‘10.10)

Green Car, Paperless Workplace10th(‘10.12)

To accelerate「Implementation Mode」and

to accomplish「Concrete Outcomes」

Producing action plan for national mitigation goal

Putting 10 key green technologies in place for economic growth

Accelerating greening of key industries with focus on improving

energy efficiency

Expanding green buildings and transportation, & facilitating green finance

Reforming pricing and tax schemes for energy

Mainstreaming green lifestyles based on the spirit of “Me First”

Facilitating international cooperation on green growth

Policy Basis

7 Action

Tasks

Policy

Direction Implementation with

full participation by

the people

Acceleration of efforts

to create a new

growth engine

Enhancement of

national reputation

as the host of G20

Review on YEAR 2010 : 7 Short-Term Tasks Green Growth

Action plan for national reduction goal

Legislation of ETSSet up reduction goal by sector

& action plan for reduction

Prepare detailed plan for operation

covering allocation, registration/

management, and emission exchange

- Gov‟t draft (Feb. 11), Review / legislation by the

National Assembly (Sep.~Dec.11)

Establish global-level GHG statistics

by major industry such as steel,

petrochemical, and chemical industries

- Comprehensive action plan for GHG

reduction (July)

Prepare tasks immediately practicable

by people and companies

Inventory by country & business site

7 Short-Term Tasks for YEAR 2010 (1/7) Green Growth

Make core green technologies growth engine &

facilitate start-up companies of outstanding green technologies

Start-up Companies with Green Tech.

(Start-up) Form start-up investment fund (e.g. Green Start-up Fund)(100 Million USD)(Jun.)

Establish business incubator specializing in green industries,

foster 1,000 green tech. ventures by’13 (200 by‟10)

Growth Engine

Next Gen. Secondary Cell

Improve weak points –parts/materials

Develop basic/original tech.

Future Nuclear Power

Tech. of eco-friendly fast reactor,

Nuclear hydrogen production system

Advanced Water Treatment

Develop advanced water supply mgt. tech.,

tech. of sewage, waste water reuse

CCS

Establish CCS master action plan

Smart Grid

Establish infra for test bed in Jeju,legislation of special law

Enhance mid-long term competitiveness

Secure competitiveness of future nuclear power

Foster water treatment industry

Drastic decrease of GHG reduction cost Become int’l leader through early commercialization


Full scale promotion of greening major industries

High Energy Consuming Ind.

steel, shipbuilding, petrochemical

cement, paper and etc.

Use IT & green tech.

- Improve energy efficiency, CO2 reduction

Core Green Ind.

automobile, semiconductor,

Display, fabric and etc.

Develop eco-friendly products

& early commercialization

Production Base Ind.

casting, mold, weld, joining,

heat treatment,

surface treatment, plastic working

Establish greening strategy for

6 major base industries

Reduction of GHG of major industries & securing new growth engine

Industry-customized greening strategies


Facilitate green buildings, transportation, and green financing

Facilitation of Green Buildings Expansion of Green Transportation

Strengthen energy saving design std.

Expand application of green building

certification

Stricter

Standard

Energy target mgt. for buildings

Energy consumption statistics system

Mandate energy efficiency indication

for apartments

Energy

Mgt.

Expand eligibility of PF guarantee

(eco-friendly house)

Reduce interest rate/guarantee fee

rate of ESCO

Financial

Support

Improve congestion fee regulation

Designate green transportation

special zone

Demand

Mgt.

Establish integrated transit centers

Expand express bus transit at

rest areas

PublicTransp-ortation

Introduce green logistics certification

system, & transportation conversion

agreement

Provide support for establishment of

joint logistics center

Green

Logistics


Rationalize energy price & eco-friendly tax base

Rationalize Energy Price Eco-friendly Tax Base

Link with fuel price: cost basis pricing

- (Gas) Re-apply linkage with fuel price system

from Mar. '10

- (Electricity) Fully apply linkage with fuel price

from 2011

Prepare energy welfare system for the

poor

Eco-friendly house: Exempt acquisition/

registration tax- Differential reduction depending on CO2 reduction

(5~15%, Jun.)

Car: Change tax base

- Convert into mileage or CO2 emission based

taxation system (Draft amendment of Local Tax Act,

∼Dec.)


Green lifestyle practices based on ‗Me First‘ spirit

Practice Campaign

Green Start Network,

Green Energy Family,

1 ton of Carbon Reduction per

1 household, and etc.

Incentives for Carbon Reduction

Carbon Cash-back

- Cash point for purchase of low-carbon goods

Carbon Point

- Points provided according to energy saving

Expansion of Green Consumption

Full scale implementation of

carbon labeling

Food Waste

Strengthen volume based food

waste fee system

Spread small size/sectioned

bowls for side dishes

- Indicate GHG emission generated

during Production and distribution


Facilitation of International Cooperation on Green Growth

East Asia Climate

Partnership (EACP)

Water Resources Mgmt.

Projects- To provide total solutions

for water problem in developing

countries

The 2nd East Asia Climate

Forum (June, 2010)

Establishment of Global

Green Growth Institute

(GGGI) (June, 2010)

- To support the establishment

of GG policies for developing

countries

Thought Leadership

on Green Growth

Strengthen cooperation

with OECD

-Joint research on „Development

of Green Growth strategies

Climate Negotiation

Active participation in climatenegotiation of post Copenhagen Accord

- To secure autonomy in climate

change policies

-To continue efforts to reflect

NAMA registry on future climate

change regime

Bridging role between developed

and developing countries


Key Plans for YEAR 2011 Green Growth

2 Promoting Market Mechanism of Energy Price and Taxation System

3 Realizing Green Infrastructure and Transportation

4 Embedding Green Lifestyle

Fostering Green Technology and Green Job Creation1

2 Vitalizing Green Finance

Contributing Climate Change Agenda1

2

Implementing ETS and Sectoral Emission Reduction Strategy1

Transforming to Green Economy and Social Structure

Strengthening Green Industrial Development Base

Sharing Green Growth Leadership

Bidding to Hosting COP18 (2012)

2

Emission Trend• Doubled emission during the 1990s

• Due to rapid economic growth based on manufacture

• 298 mil. t CO2 (1990) – 594 mil. t CO2 (2005)

Reduction Target• 30% BAU reduction by 2020

• Unilateral implementation without conditions

Emission Prospect

Against

Prospective

emissions

20201990 2005 2020

100200300

600

813

298

594

400500

800700

900

569±

0

unit: million tons

30% BAU

Reduction

Climate Change : Korean Case

East Asia Climate Partnership

http://eacp.koica.go.kr for more information

Aid for Green Growth in Climate Change Mitigation/Adaptation

• Announced at G8 Extended Summit Meeting (Toyako Japan, 2008.7)

• USD 200 Million for 5 years (2008 - 2012)

• New and Additional Resources for global climate action

• Korea became the first country to successfully transition from aid recipient

to donor country by officially joining the OECD‟s Development Assistance

Committee (DAC) in 2010

• As one of Korean initiatives in official development assistance (ODA),

the EACP will focus efforts to combat climate change by building on Korea‟s

capability to foster cooperation between developing and developed countries

(Green ODA : Increase from 14% in 2009 to 30% by 2020)

Active Role as a Bridge

EACP

http://eacp.koica.go.kr/

Why Asia Pacific region?

Fastest growing economy and population

- Asia‟s population is expected to grow from 4 → 5 billion (2009 →2050)

- Energy consumption and associated emissions in Asia will significantly

increase until 2030 driven by fast economic growth and growing middle class

Great demand for climate change adaptation

- Cyclone Nargis (May 2008) just a few example of climate change

- Melting of Himalayan glacier that feed into major rivers in Asia

Most opportunities in GHG mitigation

- 70% of CDM projects are occurring in East Asia

- Close to half of global opportunities for GHG mitigation (McKinsey report)

EACP

“Smart low

carbon city”

“water

resources

management”

“Low carbon

power

generation”

“Forestry and

biomass”

“Solid waste

treatment”

1

2

4

5

• Support the entire value chain from forestation to biomass

through projects to promote carbon storage

• Support water control infrastructure and relevant policy

development to help prevent disasters and accessibility to

fresh water to enhance the capacity to handle increasing

water-related natural disasters

• Support those Asian countries experiencing high

dependency on fossil fuels and severe power shortage,

while cutting down on carbon emissions

• Lead low-carbon development across Asian cities to boost

urban energy efficiency and to lower the green house gas e

mission

• Take the lead in Asia regarding waste related issues by

developing a database of waste information of other

countries and using it to support optimal waste

management / reuse and waste-to-energy efforts

3

Strategy and Focus : 5 priority areas EACP

Bilateral Projects in 5 Priority Areas

-17 Bilateral Projects in Climate Change Mitigation/Adaptation

Key Progress in 2009 and 2010

Multilateral Programs with International Organizations

Policy Dialogue : The 1st & 2nd East Asia Climate Forum

- Finding the roadmap to Green Growth in Asia (Seoul Initiative)- Launch of GGGI (Global Green Growth Institute)

Building knowledge hub for Aid on Green Growth

- Capacity Building- Research Programmes

EACP

- ADB : Economics of Climate Change and Low Carbon Growth Strategies in Northeast Asia - UNESCAP : Development of a Low Carbon Green Growth Roadmap for East Asia - UNEP : Water Management and Resource Efficiency for Green Growth in East Asia- WB : Low-carbon/Green Special Economic Zones Program- WHO : Strengthen Control of Vectorborne Diseases to Lessen the Impact of Climate Change- UNIDO : Transfer of Environmentally Sound Technologies in Cambodia

Water Resources Management Project (USD 80 Million)

• Water and Climate Change Adaptation in Asia Pacific• Project on Water for Green Growth (World Water Council)• UNSGAB & Members of National Assembly in Asia Pacific

Water for Green Growth

EARLY WARNING SYSTEM

DAMS

RESERVOIR

WATER PURIFICATION

WATER SUPPLY AND

DRAINAGE

SEWAGE TREATMENT

EACP

International Dialogue Platform for Water Policy

• Azerbaijan, Mongolia, The Philippines

Azerbaijan(Absheron Peninsula) Mongolia(Ulaanbaatar)

The Philippines

Mitigating Climate Change Impacts through Sustainable Upland Watershed Management and Installation of SmallWater Impoundings in Isabella and Bukidnon district

A Total Solution for Water Shortage

on the Absheron Peninsula

Development of New Water Supply

Sources for Yarmag area

Water Resources Management Projects EACP

Project Scope Budget Duration

- Establishing a master plan for water resource

development

- Supplying water to new town (Yamag) (drilling

wells with riverside natural filtration method,

Q=20,000 m3/day)

- Improving heating system of reservoir to

prevent freezing and rupture

USD 25

Million

2010

~2014

1. Water and Urbanization (Ulaanbaatar, Mongolia )

Background

-Increased nomad population to Ulaanbaatar and Deteriorating

water supply

-Nomads who suffered a great loss of live stocks due to extreme

cold climate move to the capital city

- Yearly precipitation in Ulaabaatar : 250mm

Expected Outcomes

-Benefits of clean water supply to 330,000 residents in new town

and nearby poverty area (Ger tent village)

- Improving the quality of life for those who became poverty group

due to the climate change


- Constructing water & sewage facility in targeted

8 regions

- Wastewater treatment reusing facility(60,000

m3/day)

- Establishing water resource integrated

management system

USD 70

Million

(incl. loan)

2010

~2015

2. Water Security and Economic Growth (Azerbaijan)

Background

-Possible dispute with other nations due to the reduced water

caused by climate change

-Only water source is river 200 km apart , a part of Russia

(there are no other water source)

-Semi desert area increase 2~3 times because precipitation

decreased by 19% (a scenario UN reported)

Expected Outcomes

- Proposing solutions by securing a new concept of water resource

to areas of dispute over water resource due to climate change

Integrated Water

Management System

Water Distribution

Network


- Constructing water related facilities, such as

dam (H<15m), spillway, irrigation channel, etc

-Constructing agriculture—industrial complex

to increase the income for farming household

USD 20

Million

2010

~2013

3. Water and Agricultural Development (The Philippines)

Background

- Frequent flood and drought due to climate change

- Temperature increase 0.61℃ in average for the last 50 years,

which makes the water evaporate more from farm land

- Due to the drought caused by El Nino effect, harvest quantity

dropped significantly which led the famers to the poverty level.

Accordingly, the nation now imports rice, even though it was a

rice exporting county (reduced by 820,000 ton/year of rice,

and 450,000 ton/year of corn)

Expected Outcomes

- Adapting to climate change and Improving rice production

(13,000 ha and 9,000 households)

- Vitalizing local economy with more population flowing into

agriculture-industrial complex

Another Approach … Globally

Global Green Growth Institute (GGGI)

• Announced at the 15th UN Climate Change Conference (Copenhagen, 2009.12)

• Found with initial Korean fund of annual USD 10 Million for 3 years (2010 ~ 2012)

• Other Funding from Denmark, U.A.E, Australia and etc

• Global Asset for the Global Community: an inter-governmental organization by 2012

http://www.gggi.org for more information

An independent, international non-profit organization

• Dedicated to supporting the new model of economic development, ‗Green Growth‘

• Partnership with central & local governments, industry & business, academia and IOs

http://www.gggi.org/

1. Green Growth Plans (GGPs)

- Through Country Projects, GGGI provides supports to developing countries in theirendeavors to develop Green Growth Plans

Activities of GGGI

2. Research

- Develop Green Growth Theory and Models for the new development paradigm

3. Knowledge Sharing

- Focus on the “Power of Example” by accumulating and disseminating the world‟s bestpractices on Green Growth

4. Capacity Building

- Support enhancement of developing countries‟ capacity to sustain their drive for GreenGrowth

5. Public-Private Partnership

- GGGI connects all relevant groups for increased collaboration and efficiency

Through Country Programs, GGGI provides support to developing countries in their endeavors to develop Green Growth Plans.

Legislation &

Institutionalization

of Green Growth

Comprehensive &

Sectoral

Approach

Policy Programs

at National &

Local Levels

Implementation

Frameworks

Country-specific

GGPs

Green Growth Plans (GGPs)

- Mandate from the Office of the Prime Minister

- Focus on energy, agriculture & forestry sectors

- Local partnership with the Ethiopian Development Research Institute

- Mandate from the Ministry of Finance

- Focus on forestry, agriculture, steel and electricity sectors

- Local partnership with EMBRAPA, IPEA, INPE, INPA, EPE, etc.

- Mandate from the Provincial Government of East Kalimantan

- Focus on oil, gas, coal, agriculture, palm oil and forestry

- Local partnership with REDD Task Force, Central Kalimantan & Kaltim Green Team

Ethiopia

Brazil

Indonesia

▪Country Projects Conducted in 2010

Green Growth Plans (GGPs)

• Increase from 14% in 2009 to 30% by 2020

• More effective and efficient operation of ODAGreen ODA

• 2008 – 17 key projects with 7 countries & 4 International organizations

• 2009 – 14 bilateral projects, 3 water project & 3 Intl. Orgs

• 2010 – 3 new projects, 3 Intl. Orgs

East Asia Climate Partnership

• To assist countries in formulating their own green growth plans

• To serve as a global think tank in leading developing countries to a low carbon society

Global Green Growth Institute (GGGI)

• New and Additional Fund through Innovative Mechanism

• Copenhagen Accord agreed on fast start fund of $30 billion between 2009-2012 / $100 billion by 2020 a year

Climate Finance Cooperation

• With ASEAN

• To share successful experience of Korea‘s reforestation program

Green Growth Partnership : Korean Cases

Green Growth Partnership : Perspectives from the World

• UNEP pledges Green Growth partnership with Korea (19 Aug 2009)

- It is in Asia where the green economy has seen the biggest green light.

Indeed, two thirds of the global green stimulus packages have been in

countries such as China, Japan, the Republic of Korea and Australia.

• UNEP report called for an investment of 1% of global GDP

• Korea‟s ambitious package amounts to around 2% of GDP.

• OECD Declaration on Green Growth proposed by Korea(adopted at OECD Ministerial level on 25 June 2009)

- We strengthen our efforts to pursue green growth strategies as part of our

response to the current crisis and beyond, acknowledging that ‗green‘ and

‗growth‘ can go hand-in-hand.

• Final Report on Green Growth Strategy to be adopted in May 2011

• Indicators on Green Growth to be explored

Hvala !

Thank you !

http://www.greengrowth.go.kr

Korea's Green Growth Strategy

Self Improvement

Transcript of Korea's Green Growth Strategy