September 9, 2009

Presented at the Green Korea 2009Green Growth and Cooperation: Policy Mix and Industry

by Jeong Shik Shin, Konkuk Universityjsshin@konkuk.ac.kr

1

Background

System for Promotion of National Strategy

Main Contents

I. I. 추진배경과추진배경과 개념개념

2

Simultaneous threat against the global environment and resources

Treat against the existence of human race due to weather disasters and ecological destruction

Economic loss predicated if energy mass consumption system continues : 5~20% of annual world GDP ('06, Stern Review)

Shortage of energy resources and increase in priceCaused by economic development of new developing countries and continuous growth in world population

1920s

1990sAutumnSummerSpring WinterWinter

AutumnSummerSpring WinterWinter

JAN MAR SEP DECJUN

i.e. ) Seoul

-10

-5

0

5

10

15

20

25

30

1 31 61 91 121 151 181 211 241 271 301 331 361Julian Day

Tem

pera

ture

(deg

C)

Summer Period: Jun. 3 ~ Sep. 21 (1920s)-> May 24 ~ Sep. 27 (1990s): 16 days increase

Winter Period: Nov. 21 ~ Mar. 18 (1920s)-> Nov. 29 ~ Mar. 8 (1990s): 19 days decreaseWinter

Spring

Summer

Autumn

Winter

1920s1990s

Summer Average Temp

Winter Average Temp

Source: METRI Korea, 2006

Northing of apple cultivation areasNorthing of apple cultivation areas

Cold areaCultivation areaSemi-cultivation areaNon-cultivation area

Normal Year 1℃ Increase 2℃ Increase

6

•Unit of energy source(million toe/1,000$, year 2007, IEA)

* 38% of total national energy consumption,80% of energy consumption in manufacturing

JapanJapan EnglandEngland GermanyGermany AmericaAmerica KoreaKorea OECDOECD OECDOECD KoreaKorea

0.1010.101 0.1310.131 0.1620.1620.2060.206 0.3350.335

0.1870.1873232

2323

3838

2222

The energy import of 14.15 billion dollars in 2008Exceeds export of semiconductor + automobile + shipbuilding (11.09 billion dollars)

(unit : 100 million $)

496667 856

’04 ’05 ’06 ’07 ’08

9501,415

△130

294 231160 146

Trade balance

Energy import

0

In case of 10% increase in oil pricePrice of commodities0.23%pPrice of commodities0.23%p

GDP increase rate△0.35%pGDP increase rate△0.35%p

Operating profit rate△0.2%pOperating profit rate△0.2%p

’97’97 ’06’06 ’97’97 ’06’06

SERI(’07)

What is Green Growth?

What do we mean by Green Growth

’as we go green – we get money & jobs”

<Elements of Green Growth>

green energyparadigm

Contributionto the globalcommunity

Improvementin quality

of life

GreenTechnology asa new growth

engine

How can we achieve Green Growth?

Technology

Policy tool(regulation &

incentive)

Change inlife-style

Why is Korea striving for Green Growth?

Climate Impact

Energy security vulnerability

Economic slow-down

- average temperature rise 1.7℃ (2 times more than world average)

- 140 billion USD energy bill

- growth rate declining since the Asian economic crisis in late 1990s- growth without rise in employment

“New pathis needed”

The Logic

High

HighLow

Source : ESI, Morgan Stanley Research

GERJAP

UK

USA

ZARIND

CHN

PAKSAU

IRAUKR

RUSIDN

MEXTUR

BRA

ITAARG

CANSPA

EURAUS

POL

FRA

Environmental Stress and Vulnerability

KOR

Cap

acity

to A

dapt

The Logic

Capacity to adapt top leadership Energy dependent industry

Opportunity as a new growth engine Internal & external uncertainty

Strong Green Leadership

- Presidential Committee on Green Growth

Features of the Green Growth in Korea

Fast integration of the Vision in all sectors

- meaningful partnership with private council (business, financial sector, technology experts etc.)

Turning it into “real actions”

Strong industrial base in relevant areas

- large competent players

key role for the Presidential Committee on Green GrowthSustained Drive

Actions

-inherits the spirit of the “Economic Development Plan” in the 60~80s* 5 year implementation plans

- new “green saemauel movement”

StrategyPlan

- Green New Deal- Re-orientation of private-public finance toward green (policy, R&D, SOC)

GreenBudget

early ratification ofthe Basic Act on Green Growth

LegalFramework

National midterm GHG reduction target - set this year -

Background & Key projects

- Green New Deal announced on Jan. 2009 - 9 key projects and supporting projects- focused on job creation as well as building the foundation for low carbon economy transition

Green New Deal

Budget (billion KRW) Job Creation (# of jobs)Project Name

2009 ~ 2012 total 2009 ~ 2012 Total

total sum 4,363 45,687 50,049 93,360 863,060 956,420

• 4 Major River Revitalization 488 13,990 14,478 7,000 192,960 199,960

• Green Transportation 1,835 7,819 9,654 25,042 113,025 138,067

• Integrated Territory Management 25 347 372 816 2,304 3,120

• Water Resource Catchment 185 758 942 3,063 13,069 16,132

• Green Car & Clean Energy 321 1,732 2,053 1,643 12,705 14,348

• Waste Resource Reuse 51 879 930 2,377 13,819 16,196

• Forestry 313 2,104 2,417 22,498 148,204 170,702

• Green Home, Green School - 8,050 8,050 - 133,630 133,630

KEY

PROJECTS • Ecological River 5 479 484 393 10,396 10,789

Support Projects 1,140 9,530 10,670 30,528 262,038 141,639

I. I. 추진배경과추진배경과 개념개념

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National energy basic plansMeasures against climate changesSustainabledevelopment

Core plansCore plans

National plans for land developmentNational plans forbalanced developmentNational plans for science andtechnology development

Related plansRelated plans

Renewable energydevelopment planNew growth powerdevelopment strategyGreen IT strategy

Other plansOther plans

Green growth national strategyGreen growth national strategy(’09.first half)

5 year plan5 year plan

(’09.first half)

National plansNational plans

Overall plan per facilityOverall plan per facility

Regional plansRegional plans

Overall Plans

Plans by Sector

LocalGovernment

National Assembly

Green Growth Korea

Local government committee

Planning and coordination council

Green growth network

NGO

Science/Technology

Industry

Culture

Academy

Labor

Media

Religion

Education

Governance(Private·government

cooperation)

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I. I. 추진배경과추진배경과 개념개념

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Current Status

- a multi-agency + research institute participating project- strategy and 5 year implementation plan being developed (target date July 2009)

National Strategy for Green Growth

Key Framework

A Model Green Nation - through creating virtuous harmony of environment & economyVision

Objectives

10 Key

Agenda

Increasing Energy Security & Climate

Adaptation

New Enginefor Growth

Enhanced Quality of Life & Int’l Leadership

• Build Low Carbon Society

•Enhance Energy Security

•Strengthening Climate Actions

• Develop Green Tech.

• Foster Green Industry

•Greenovate Industrial structure

•Lay Foundation for Green Economy

• Green Transportation &

Land Management

• Green Life Revolution

•Global Green Leader

Strategies

• National GHG info management system• - set emissions reduction Target• - enhance carbon visibility • Encourage Carbon-3R Activities• Inter-Korea Cooperation for the Green Korean Peninsula

Indicative target

1. Low Carbon Society

19.8%(’50)

(’20)

(’09)

17.6%

17%

Reduce GHGsCarbon-3R Rates

2. Energy Security

Enhance Energy Independence

Strategies

• Energy conserving society• Expand clean energy deployment• Expand safe nuclear energy • Expand off-shore energy source development

Indicative target

100%(’50)

(’20)

(’09)

50%

32%

22’07 ’30 ’07

Oil

Coal

LNG

Nuclear

Renewable energy

14.9%

27.8%

2.4%

11.5%

83%

61%43.443.4

25.325.3

13.813.8

33.033.0

’30

15.715.7

12.012.0

2007 : 241 million TOE2007 : 241 million TOE 2030: 300 million TOE2030: 300 million TOE

3. Strengthen Climate Actions

Strategies

• Improve monitoring& early warning system• Improve climate adaptation & address related health risks• Improve food security• Improve water resources management

Indicative target

22.2billion㎥(’50)

(’20)

(’09)

21.4billion㎥

18.6billion㎥ 수질개선 수자원확보

Secure Water Resources

4. Develop Green Tech

Strategies

• Strategic Promotion of Green tech innovation• Strategic Investment in Green R&D • Core Green technologies

- LED, CCS, Clean Cars, Renewables

Indicative target

Invest in Green tech R&D

30%(’50)

(’20)

(’09)

25%

16%

Export in Green Products

35%(’50)

(’20)

(’09)

22%

10%

5. Fostering Green Industries

Strategies

• Resource-circulating economy & society• Green conversion of industries• Foster green SMEs• Build green clusters

Indicative target

Export industrialization through development of green technologybased on fusion of IT, BT, NT application.

* Example: Green home using natural energy, hydrogen energy and ethanol production technology

Energy resource technology

Climate change countermeasure technology

Environment technology

New fuel technology (GTL, CCT)

Resource explorationDevelopment technology(Gas hydrate, polar resource exploration)

New energy technology(hydrogen, fuel cell, coal liquidation/gasification)

Recycled energy technology(solar light, wind, bio)

Futuristic nuclear technology(4th generation nuclear energy)

Nuclear fusion (ITER)

Energy efficiency enhancement technology

(power generation, industry, household, commerce, transportation)

CO2 collection/ storage technology

Climate change forecast & countermeasure technology

Clean production technology(eco friendly products & process)

Resource recycle technology(waste recycle, limited resource recycle)

Environment pollutionprevention technology(air, earth, subterranean water pollution prevention)

Water treatment technology(high efficiency purification, sewage treatment, water resource obtainment)

6. ‘Greenovate’ Industrial Structure

Strategies

• Foster high tech fusion industry

• High value added service industry

Indicative target

(’50)

(’20)

(’09)

Export in contents

$50billion

$10billion

$5.8billion

Export in IT fusion industry

$349billion

$144billion

$ 75.5billion

Domestic Carbon Market

5 trillion won(’50)

(’20)

(’09)

2 trillion won

Getting ready

7. Build Green Economy Basis

Strategies

• Invigorate Carbon Market - Cap & trade, Emissions related business

• Green Financial Infrastructure- Sustainable banking, Green fund

• Eco-tax• Create green jobs

Indicative target

8. Green Land·Transportation

UN Green Model Cities

(’50)

(’20)

(’09)

10

5

0

30%

26%

18%

Proportion of railway transportation

Strategies

• Expansion of Green Home & Green Buildings • Green cities • Expand Eco space• Green Public Transportation bicycles & Promote Green Cars

Indicative target

Carbon label certified products

9. Green Life Revolution

4,000 items(’50)

(’20)

(’09)

1,000 items

50 items

9. Green Life Revolution

Strategies

• Introduce Eco-point system & expand Carbon labeling

• Promote green consumption & green lifestyle

• Promote green growth education & public awareness

Indicative target

EPI

51st

8th(’50)

(’20)

(’09)

20th

Green ODA

40%

30%

14%

10 Global Green Leader

Strategies

• Enhance int’l cooperation for green growth and climate action • Increase Green ODA & support developing countries • Build Green Hub Korea

Indicative target

Challenges Ahead

Support from business communitySupport from business community

- meeting its needs to adapt & change- setting a price on target

: emission trading & carbon tax

Continued support from the publicContinued support from the public

- the key to success of Green Growth

Green Growth is not an option but, the only option

Green Growth is not plan B, it’s the Plan A

It is the strategy of change that jumps over the chasm

and it is a concept of creativity that opens all possibilities

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