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Net Zero Governance - The case of Korea

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Net Zero Governance - The case of Korea

  1. 1. 2022 ProSPER.Net Leadership Programme – Shifting to Net Zero
  2. 2. 01 We are a government-funded policy research institute that tackles green growth challenges and climate crisis with green technologies. We bridge science, policy and decision-making to develop green solutions and facilitate climate actions.
  3. 3. October 28, 13:00-16:30, CIPSEM Course on Soil and Land Resources for SD UNEP 2016 ✓ The Paris Agreement’s aims of limiting global warming to well below 2ºC and pursuing efforts towards 1.5ºC (IPCC 2018), and submission of 164 NDCs representing all 191 Parties (UNFCCC 2021) <Projected range and progression of emission levels> Source: NDCs under the Paris Agreement (UNFCCC 2021) NDCs as at 30 July 2021 Progression INDCs as at 4 April 2016 <Net-zero emissions race (as of October 17 2021> Source: Energy & Climate Intelligence Unit https://eciu.net/netzerotracker 02
  4. 4. October 28, 13:00-16:30, CIPSEM Course on Soil and Land Resources for SD ✓ ‘Current levels of climate ambition are NOT on track to meet our Paris Agreement goals.’ (Patricia Espinosa, Executive Secretary of UN Climate Change) Source: A government roadmap for addressing the climate and post COVID-19 economic crises (Climate Action Tracker 2020) <Emissions gap in 2030> Source: Emissions gap report 2020 (UNEP 2020) 03
  5. 5. October 28, 13:00-16:30, CIPSEM Course on Soil and Land Resources for SD ▪ Green spending: spending with a likely positive environmental impact → During COVID-19 pandemic: one-sixth of the green spending responding to 2008-09 financial crisis → Green recovery not only initiates significant emissions reduction but creates economic growth <Growth in CO2 emissions after the 2008-09 financial crisis> Source: Glen et al. 2012 <Green investments and job creation - jobs created per $1 million> Source: IEA 2020 https://recovery.smithschool.ox.ac.uk/tracking/ 04
  6. 6. 05 • Coordination among many government/nongovernment actors (coordination bodies to facilitate the complex task of aligning climate action across state and non-state actors) • Climate change framework legislation to help address the challenge of credible commitment by establishing legally binding targets • Independent climate advisory bodies to strengthen the evidence base for climate policy and help align policy with long- term goals • Planning, budgeting, public investment, procurement, and intergovernmental fiscal systems to align public resources with climate policies • Strengthened governance of state-owned enterprises to create incentives for climate action in key sectors such as energy, transport, and water • Stakeholder engagement to help hold the government accountable for its climate commitments
  7. 7. 06 a. Policy level: Develop and update existing legislation for carbon neutrality at national level across all sectors of government for all relevant ministries to implement via a multi-stakeholder governing body b. Technical level: Capacity building likely necessary for ministries and different stakeholders within governing body to understand low-carbon and carbon neutral initiatives available to them c. Implementation level: Create implementation mechanism for low-carbon and carbon neutral initiatives at national, sub- national, and local level with appropriate financial and capacity-building resources for implementation teams at various levels
  8. 8. 07 Target 1.) Develop a carbon neutrality framework for governance that works with legislative packages, budgets, and implementation across all sectors and scales of society Sub-Targets 1.1) Develop and update legislation for carbon neutrality at the national level for ministries to implement 1.2) Create a governing body for carbon neutrality with representation from all government ministries, as well as other stakeholders 1.3) Create funding schemes for budgets to implement low-carbon and carbon-neutral policies 1.4) Create implementation mechanisms for low-carbon and carbon-neutral initiatives at national, sub-national, and local levels with appropriate financial and capacity-building resources for implementation teams at various levels Indicators 1.1.1) Number of new policies implemented for carbon-neutrality 1.1.2) Number of existing policies updated for carbon neutrality 1.2.1) Number of different ministries represented on governing body 1.2.2) Number of other stakeholder groups represented on governing body 1.3.1) Total amount of funds set aside for carbon neutrality 1.4.1) Number of carbon neutral initiatives operating at national level 1.4.2) Number of carbon neutral initiatives operating at sub-national level 1.4.3) Number of carbon neutral initiatives operating at local level
  9. 9. 08 • All three countries have a proactive and comprehensive approach to net zero greenhouse gas emissions emanating from the three countries’ central governments Korea Costa Rica Japan • Led by comprehensive inter- ministerial coordination and communication • 2050 Carbon Neutrality Committee, which is co-chaired by the Prime Minister and includes 18 ministers • Policy formulation and implementation by the relevant ministries, while monitoring and assessment by the Ministry of Environment • Led by the leadership of the Ministry of Environment and Energy (Director of Climate Change) under the directive of the Costa Rican president • Citizen Consulting Council on Climate Change • Scientific Council on Climate Change • Led by comprehensive inter- ministerial coordination and communication • SDGs Promotion Headquarters, which is led by the Prime Minister and includes all of the heads of the nation’s ministries • Policy formulation and implementation by the relevant ministries, while monitoring and assessment by the Ministry of Environment
  10. 10. 09 ▪ Both Korea and Japan have large (post)industrial economies, and as such these more diverse economic sectors require different approaches for net-zero emissions policies and implementation strategies from different ministries ▪ For larger (post)industrial nations where multiple economic sectors require attention for effective decarbonization, the South Korean and Japanese styles of governance would likely prove more effective. ▪ Costa Rica’s highly centralized approach to policy formulation and implementation around the MoEE seems to work well for a country where the economy’s largest source of emissions has been from a single source historically – in this case, deforestation ▪ Since deforestation has been the driving force behind carbon emissions within the nation for decades, For larger (post)industrial nations where multiple economic sectors require attention for effective decarbonization, the South Korean and Japanese styles of governance would likely prove more effective.
  11. 11. 10 • Korea has experienced remarkable economic growth, which can be characterized as an energy-intensive model primarily dependent on fossil fuel-based industries such as the steel, automotive, shipbuilding, and petrochemical sectors <Climate change impacts in Korea for the past 100 years> Source: National Institute of Meteorological Sciences 2018
  12. 12. 11 • Concerning high fossil fuel dependence, Korea’s greenhouse gas (GHG) emissions rose almost twofold between 1990 and 2005, recording the highest growth rate in the OECD area <National trend of GHG emissions and removals by sector in Korea (1990-2019)> Source: GIR 2022 The energy sector has the highest emissions of 611.5 MtCO2eq (87.2%) in 2019, followed by the industrial processing sector (2.0 MtCO2eq, 7.4%), agricultural sector (21.0 tCO2eq, 3.0%), and waste sector (16.9 MtCO2eq, 2.4%). The energy sector contributed the most to the reduction in emissions in 2019, which decreased by 21.1 MtCO2eq, 3.3% compared to the previous year, and mainly decreased in public electricity and heat production and residential buildings
  13. 13. 12 • 2050 Carbon Neutrality and Green Growth Committee (1/4) Source: 2050 Carbon Neutrality and Green Growth Committee Chairperson Prime Minister, Civilian Co-chairperson Members Ex-officio government members (21 people) + President-appointed civilian commission members (32 people) Term Two years (one consecutive term permitted) Function • Review* of major policies and plans for implementing carbon neutrality • Assessment and follow-up on the implementation plans • Public relations * National strategies, main directions for pushing forward carbon neutrality policies, climate change response, research and development, manpower training and industry promotion
  14. 14. 13 • 2050 Carbon Neutrality and Green Growth Committee (2/4) Source: Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis Section Details Article 15. Establishment of the 2050 Committee  Comprised of at least 50 but not exceeding 100 members, including two chairpersons  Co-chaired by Prime Minister and the other appointed by the President  Committee members composed of key Ministers and experts related to carbon neutrality Article 16. Functions The Committee deliberates and decides on the matters including:  Policy directions  Setting of national vision, mid- to long-term reduction targets  Development and revision of the national strategy and mater plan  Inspection of the implementation progress  Direction on the distribution and utilization of financial resources  Research and development, capacity building, public awareness, and communication Article 19. Establishment of subcommittees  The Committee may have subcommittees (or special committees) comprised of Committee members  Each subcommittee may have expert committees for review Article 20. Investigation and opinion hearing The 2050 Committee may request or investigate the followings:  A request for data and documents to the Ministers  On-site investigation  Ministers may request public officials and experts to attend the 2050 Committee for statement and data submission Article 21. Secretariat The Secretariat shall be established, consisting of the secretary general and public officials
  15. 15. 14 • 2050 Carbon Neutrality and Green Growth Committee (3/4) Source: 2050 Carbon Neutrality and Green Growth Committee Sub-committee Key responsibilities Greenhouse Gas Reduction • Establishment and implementation of mid-to-long-term greenhouse gas reduction goals • Comprehensive greenhouse gas reduction policies such as emission trading systems • Greenhouse gas reduction policies in areas of buildings, transportation, waste, sinks, and agriculture, livestock, and fisheries Energy and Industry Transition • Review of energy mix • National policies and plans related to energy and industry sectors • Greenhouse gas reductions in the areas of energy transition, industry, and hydrogen Just Transition and Climate Change Adaptation • Support for local government's initiatives on carbon neutrality • Policies for climate prediction and adaptation • Policies for the just transition and sustainability • Carbon neutrality education and cultivation of human resources • Social campaign for and public participation in carbon neutrality initiatives Green Growth and International Cooperation • Promotion and support for green economy and green industry • Policy coordination and support for finance related to climate crisis response • Support for establishing national strategies of R&D for green technology • International cooperation and global reduction
  16. 16. 15 • 2050 Carbon Neutrality and Green Growth Committee (4/4) Source: 2050 Carbon Neutrality and Green Growth Committee
  17. 17. 16 Ministry Key department Key role and responsibility Ministry of Environment (MOE) Director General of Climate Change [Division of Climate Strategy]  Establishes and revises legislation related to climate change  Sets GHG emissions targets  Evaluates the national and local implementation of GHG emissions reduction  Establishes mid- to long-term low carbon and reduction strategy [Division of Climate Economy]  Establishes and revises legislation related to the emissions trading system  Establishes the master plan on the allocation and trading of emission permits  Establishes and revises guidelines related to GHG and energy target management and integration  Designates measurement and monitoring institutions on GHG emissions and energy consumption Greenhouse Gas Inventory and Research Center (GIR)  Prepares national GHG statistics every year, publishes them through analysis and verification, and establishes a Management Plan for the National GHG Inventory every five years  Operates National GHGs Management System (NGMS) that manages emissions and emission trading volumes of individual business sites  Supports the establishment of Long-term low greenhouse gas Emission Development Strategies (LEDS) scenarios  Educates and promotes information related to GHG inventory and reduction policies at domestic and abroad, as well as transferring related knowledge to developing countries
  18. 18. 17 Ministry Key department Key role and responsibility Ministry of Trade, Industry, and Energy (MOTIE) Director General of Energy Transition Policy [Division of Energy Policy]  Establishes and implements the master plan for the energy  Synthesizes and coordinates the national budget for the energy policy  Operates energy price policy and system  Develops and manages domestic and international energy supply and demand statistics [GHG Emissions Reduction Team]  Establishes and coordinates the master plan and policy related to GHG emissions reduction in the energy and industrial sector  Improves fiscal and tax support and system for GHG emissions reduction in the energy and industrial sector Director General of Renewable Energy  Establishes and implements the policy related to eco-friendly and sustainable energy, and renewable energy industry  Directs and coordinates the development, utilization, and deployment of renewable energy technology for industrial upgrading  Modifies, operates, and improves legislation on renewable energy  Designates and nurtures university and R&D center specialized in renewable energy  Develops and supports mid- to long-term renewable energy project
  19. 19. 18 Ministry Key department Key role and responsibility Ministry of Economy and Finance (MOEF) Department of Long-term Strategy [Division of Climate Change Response Strategy]  Consults and coordinates the matters related to mid- to long-term national and sectoral GHG emissions reduction targets  Consults and coordinates key policies on emissions trading system  Establishes and coordinates the policy on the management and operation of the Climate Response Fund  Researches and improves the fiscal policy related to carbon neutrality  Consults and coordinates the mid- to long-term fiscal policy on carbon neutrality Department of Development Finance [Division of Green Climate Planning]  Directs and coordinates the matters on the climate finance and Green Climate Fund (GCF)  Serves as a National Designated Authority (NDA) of the United Nations Framework Convention on Climate Change (UNFCCC) for the interface between Korea and the GCF, provides broad strategic oversight of the GCF’s activities in the country, and communicates the country’s priorities for financing low-emission and climate-resilient development
  20. 20. 19 Ministry Key department Key role and responsibility Ministry of Science and ICT (MSIT) Director General of Basic Original Research  Develops mid- to long-term national R&D plan and project related to the MSIT  Operates international cooperation on the development and transfer of climate technology responding to climate change  Develops mid- to the long-term master plan on the development of original technology related to the MSIT  Operates and improves legislation related to the development of original technology about the MSIT  Establishes and implements the implementation plan for the development project original technology related to the MSIT  Serves as a National Designated Entity (NDE) of the UNFCCC for the development and transfer of climate technologies and acts as a focal point for interacting with the Climate Technology Centre and Network (CTCN) under UNFCCC. Ministry of Foreign Affairs (MOFA) Department of Foreign Affairs on Climate Change and Environmental Science [Division of Foreign Affairs on Climate Change]  Develops, implements, and coordinates the foreign policy on climate change cooperation, including matters on the GCF, Global Green Growth Institute (GGGI), and P4G Partnerships  Serves as a national focal point of the UNFCCC for the submission of the NDC and LEDS Ambassador for Climate Change  Secures the national interests through follow-up negotiations and international cooperation for the implementation of the Paris Agreement
  21. 21. 20 Ministry Key department Key role and responsibility Korea Meteorological Administration (KMA) Department of Climate Science  Establishes, synthesizes, and coordinates the policy related to climate change  Coordinates international cooperation related to climate change, including the Intergovernmental Panel on Climate Change (IPCC) and the Group on Earth Observations (GEO)  Establishes and coordinates the policy related to climate change scenario National Institute of Meteorological Sciences  Develops climate change scenario production system and study on climate process  Assesses global/regional/national climate projection and development of climate information to support national climate change policy Korea Forest Service (KFS) Department of Forest Industry Policy  Develops and implements forestry policy, including carbon forestry  Establishes and implements the master plan for national forestry National Institute of Forest Science  Operates the Carbon Neutrality Research Center for the forecast of GHG absorption in the forest sector, wood product carbon account calculation, researches on the activation of the forest carbon offset system
  22. 22. 21 Ministry Plan and Act Ministry of Environment (MOE) National Framework Plan for Carbon Neutrality and Green Growth pursuant to Article 10.1 of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis Ministry of Trade, Industry, and Energy (MOTIE) Master Plan for Electricity Supply and Demand pursuant to Article 25.1 of the Electric Utility Act Ministry of Land, Infrastructure, and Transport (MOLIT) Comprehensive National Land Plan pursuant to Article 9.1 of the Framework Act on the National Land Office for Government Policy Coordination Framework Strategy for Sustainable Development pursuant to Article 7 of the Framework Act on Sustainable Development Ministry of Trade, Industry, and Energy (MOTIE) Master Plan for the Promotion of the Development, Use, and Diffusion of New and Renewable Energy pursuant to Article 5.1 of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy Ministry of Land, Infrastructure, and Transport (MOLIT) Master Plan for National Core Transport Network pursuant to Article 4.1 of the National Transport System Efficiency Act Ministry of Trade, Industry, and Energy (MOTIE) Master Plan for Implementing the Hydrogen Economy pursuant to Article 5.1 of the Hydrogen Economy Promotion and Hydrogen Safety Management Act Ministry of Agriculture, Food and Rural Affairs (MAFRA) Framework Plan to Develop Agriculture, Rural Communities, and Food Industry pursuant to Article 14.1 of the Framework Act on Agriculture, Rural Community, and Food Industry Ministry of Environment (MOE) Framework Plan for Resources Circulation pursuant to Article 11.1 of the Framework Act on Resources Circulation Ministry of Land, Infrastructure, and Transport (MOLIT) Master Plan for Green Building pursuant to Article 6.1 of the Green Building Construction Support Act Korea Forest Service (KFS) Comprehensive Plan for the Management and Improvement of Carbon Sink pursuant to Article 5.1 of the Act on the Management and Improvement of Carbon Sink
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  26. 26. 21 • Public institutions are expected to cooperate with carbon-neutral policy measures taken by national and local governments. • The private sector is expected to minimize GHG emissions while simultaneously investing in green technology and green industries. • Citizens are expected to support “green life” campaigns targeted at them by both the national and local government. Within each carbon neutral initiative, it is often the work of the implementing government agency to do a comprehensive stakeholder engagement at either the national or the local level.
  27. 27. 22 1. Condition for participation - Residential buildings and complexes and commercial buildings that have a meter with a unique number 2. Participant - (Individual) Household, business - (Complex) Apartment complex composing more than 150 households, public school 3. Carbon point and incentive - (Carbon point) Energy items used in homes or complexes (electricity, water, and gas) are compared to the average monthly usage over the past one or two years, and carbon points are calculated based on the savings rate - (Incentive) Payment in June and December in cash, voucher, Green Card point, local cash, etc. (1 point=1 KWR)
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