This document summarizes a presentation made by Director Ick Jin of the National Assembly Budget Office's Economic Program Evaluation Division at an international symposium on climate technology cooperation. The presentation covered three topics: climate policy, climate technology, and climate finance. For climate policy, the key points were a summary of the Paris Agreement and criticisms of it, as well as analysis of Korea's climate targets. For climate technology, the focus was on identifying priority technologies and outlining R&D budgets. For climate finance, the challenges of mobilizing long-term funding were discussed along with potential instruments and risk management approaches.

1. Climate Technology
and
Climate Finance
2016. 11. 29
National Assembly Budget Office
Economic Program Evaluation Division
Director, Ick Jin
International Symposium on Climate Technology Cooperation
2016. 11. 29
National Assembly Budget Office
Economic Program Evaluation Division
Director, Ick Jin

2. Introductory Remark …
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Policy & Technology & Finance ☞ Strategic Alignment

3. Further Reference
• ‘Evaluation of Responsible Investment by Public Pension Funds’
(NABO Program Evaluation 16-14, August 2016)
• ‘Evaluation of Post-2020 NDC for Greenhouse Gas Reduction & Analysis
of Measures to Secure Overseas Emission Rights’
(NABO Program Evaluation 16-15, September 2016)
• ‘Evaluation of Public Climate Finance Policy’
(NABO Program Evaluation 16-21, November 2016)
• ‘Put Your Money Where Your Mouth is! - Climate·Finance·Industry :
Responsibilities, Opportunities & Legislative Issues’
(NABO & UNEP FI Joint Seminar Proceeding, November 2016)
☞ Please, refer to the NABO homepage for the full reports.
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• ‘Evaluation of Responsible Investment by Public Pension Funds’
(NABO Program Evaluation 16-14, August 2016)
• ‘Evaluation of Post-2020 NDC for Greenhouse Gas Reduction & Analysis
of Measures to Secure Overseas Emission Rights’
(NABO Program Evaluation 16-15, September 2016)
• ‘Evaluation of Public Climate Finance Policy’
(NABO Program Evaluation 16-21, November 2016)
• ‘Put Your Money Where Your Mouth is! - Climate·Finance·Industry :
Responsibilities, Opportunities & Legislative Issues’
(NABO & UNEP FI Joint Seminar Proceeding, November 2016)
☞ Please, refer to the NABO homepage for the full reports.

4. Contents : I. Climate Policy
Action Principle
Climate FinanceClimate Policy Climate Technology
Challenge
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Reaction
Prospect
Target
Program
Response
Instrument

5. I. Climate Policy : Action
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[Effective on November 4, 2016]: signed so far by 193 out of
197 UNFCCC members, 110 of which have ratified the treaty.

6. I. Climate Policy : Reaction
[Criticisms]:
Most of the agreement consists
of ‘promises or aims’ and not
‘firm commitments.
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[Short-term uncertainty]:
U.S.A. may be going to withdraw
from or to repudiate the Paris
agreement.

7. I. Climate Policy : Prospect
[Long-term pathway]: Climate Change 2013 (IPCC, 2013)
“Warming of the climate system is unequivocal, and since the 1950s, many
of the observed changes are unprecedented over decades to millennia.”
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8. I. Climate Policy : Prospect
[I.C.I.]: International Comparison Index (NABO, 2016)
Korea’s NDC (37% reduction from BAU vis-à-vis 2010) seems relatively
ambitious in comparison with the reference level of 100.
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Country I.C.I. Rank Country I.C.I. Rank
Malta 181.10 1 Norway 96.24 21
U.S.A. 133.88 7 Japan 77.59 34
China 128.79 11 France 76.52 35
R.O.K. 120.31 16 England 68.19 42
Russia 97.20 20 Germany 62.65 46

9. I. Climate Policy : Prospect
☞ [Analysis]: Panel data regression (NABO, 2016)
• Variables: fiscal balance, GHG emissions, macro-economic variables
• Countries: OECD and BRIICs
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Current budget for “National
GHG Reduction Roadmap”
approx. 3.08 trillion per year
[Total fiscal needs]: to achieve Korea’s NDC (37% reduction from BAU)
☞ approx. 59.4~64.5 trillion (roughly, $60 billion) during 2021~2030
Additional fiscal needs to implement
“NDC of Korea”
approx. 31.2 trillion for 10 years

10. Contents : II. Climate Finance
Climate FinanceClimate Policy Climate Technology
ChallengePrincipleAction
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Response
Instrument
Target
Program
Reaction
Prospect

11. II. Climate Technology : Principle
[Global Kaya Identity]: Working Group III IPCC report, Chapter 5
• Traditional trade-off ☞ Emission reduction vs. Economic growth
• Green growth ☞ New opportunity from responding to climate change
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[Strategy]: Utilizing climate technology to lower intensities
• Energy efficiency technology ☞ Lowering energy intensity
• Renewable energy technology ☞ Lowering carbon intensity

12. CTR (Climate Technology Roadmap)
• NSTC, June 2016
• Identifying 10 climate technologies
II. Climate Technology : Target
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[R&D budget for CTR]:
• 483 billion for 2016

13. “Development Strategy for Core Climate Technology”
• 2016 Presidential briefing
• Identifying 6 core climate technologies
II. Climate Technology : Program
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[MSIP Budget]: R&D on Core Climate Technology
• approx. 40.8 billion for 2016
• approx. 50.6 billion for 2017 (request)
Solar Battery Fuel Cell Bio-fuel Secondary Battery Electricity IT CCS

14. [MSIP Budget for CUDS]:
• Approx. 45 billion (plan)
• 5 years period (2017~2021)
II. Climate Technology : Program
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CUDS
(Carbon Utilization
Development Strategy)
• PACST
• April 2016

15. II. Climate Technology : Program
“Support Program for Climate Technology Global Cooperation”
• National Science & Technology Council, October 2015
[Program]:
• Searching needs
• Finding projects
• Establishing networks
• Cooperation center
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[MSIP Budget]:
• 4.1 billion
• for 2017 (request)
[Program]:
• Searching needs
• Finding projects
• Establishing networks
• Cooperation center

16. Contents : III. Climate Finance
Challenge
Climate FinanceClimate Policy Climate Technology
PrincipleAction
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Response
Instrument
Target
Program
Reaction
Prospect

17. III. Climate Finance : Challenge
Technology commercialization … short-term risk vs. long-term potential
Outcome
Roundabout
accumulation
latency
Roundabout accumulation
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Long-term Time Frame
Roundabout
accumulation
latency
Linear accumulation
Short-term

18. Role of intermediary … supplying funds and risk management tools
III. Climate Finance : Response
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19. Mobilizing climate finance by mitigating market failure
S
Expected
return
S’
P1
III. Climate Finance : Response
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D
Amount
0
S’
P2
Q2
D’
Q1

20. Establishing sustainable “Climate Finance Safety-net” … mobilizing PPP
Climate
Technology
Climate
Technology
Screening
Monitoring
Systematic
Risk
Individual
Risk
Catastrophic
Risk
Private
Safety-net
Public
Safety-net
III. Climate Finance : Instrument
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Development
Risk Management
Funding
IB, VC, PEF
Institutional
Investors
Government
-sponsored
Funds
Insurers
Guarantors
Reinsurers
Guarantors

21. The significant problems we face
cannot be solved by the same level
of thinking that created them.
One definition of insane is
to keep doing the same thing and
expect different outcomes.
- Albert Einstein -
Concluding Remark …
PPP to align climate finance with climate technology cooperation
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The significant problems we face
cannot be solved by the same level
of thinking that created them.
One definition of insane is
to keep doing the same thing and
expect different outcomes.
- Albert Einstein -

22. Thank You for Your Attention.
Economic Program EvaluationEconomic Program Evaluation DivisionDivision
Director,Director, IckIck Jin (Jin (realwing@assembly.go.krrealwing@assembly.go.kr))
International Symposium on Climate Technology Cooperation
22
Economic Program EvaluationEconomic Program Evaluation DivisionDivision
Director,Director, IckIck Jin (Jin (realwing@assembly.go.krrealwing@assembly.go.kr))