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
7 Short-Term Tasks for YEAR 2010 (2/7) Green Growth
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
7 Short-Term Tasks for YEAR 2010 (3/7) Green Growth
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
7 Short-Term Tasks for YEAR 2010 (4/7) Green Growth
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.)
7 Short-Term Tasks for YEAR 2010 (5/7) Green Growth
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
7 Short-Term Tasks for YEAR 2010 (6/7) Green Growth
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
7 Short-Term Tasks for YEAR 2010 (7/7) Green Growth
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
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
Project Scope Budget Duration
- 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
Project Scope Budget Duration
- 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
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
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