- The document discusses innovation for green growth and sustainable development. - It outlines Korea's national green growth strategy and policy framework, including its two 5-year green growth plans, to establish institutions and create actual green innovation outcomes through creativity and public-private partnerships. - Examples of Korea's green innovation initiatives include the Innovation Center public-private platform supporting green startups, and eco-friendly energy towns collaborating across central/local government and companies to utilize wastes and renewables.

1. Innovation for Green Growth
1/
- Korea’s case and suggestions -
Jong-Won YOON
Ambassador of Korea to the OECD
1/ Prepared for OECD Green Growth And Sustainable Development Forum, 14 December 2015

2. “How to support green growth through
systems innovation policies?”
 Green Growth: OECD’s Contribution
 Innovation: STI Ministerial 2015
 Korea’s Case for GG Strategy and Innovation
 Issues for Discussions
Scene-setting presentation on …

3. Historic Moment: Just Beginning of the Road
19:36, 12 December 2015
Paris Agreement Adopted

4. OECD and Green Growth
• OECD Declaration on Green Growth (2009)
 “Friends of Green Growth”
• Making Green Growth Deliver (2012)
MCM 2009 Environment Ministerial 2012

5. Green Growth: Mainstreaming & Tracking
• Establishing Strategy
 Outlined in Towards Green Growth (2011)
• Mainstreaming
 GGSD Forum (2012- )
 Country Review
(EDRC,EPR)
• Tracking Progress
 Towards Green Growth? Tracking Progress (2015)

6. OECD STI Ministerial 2015 (Daejeon, Korea)
 Theme: “Creating our Common Future through STI”
 Participants: 48 countries and 9 organizations
* Outreach for non-members, including ASEAN

7. STI Ministers adopted and discussed…
• Daejeon Declaration on STI Policies
① Implementation of national innovation strategy
② Impact assessment for public investment
③ Open science and global cooperation
④ STI’s contribution to better life (e.g. health)
• New technologies for Green Future
 STI’s role to cooperate on climate change
 Policy Framework to maximize impact on environment
*Bio-economy, renewable energy, water & food technology

8. Korea’s GG Policy Framework
• Act on Low Carbon and Green Growth (2010)
• National Green Growth Strategy (2009-2050)
• Five-year Green Growth Plan as an implementation plan
1st Five-year Plan
(2009-2013)
 Catching-up strategy
 Individual technology
 Government driven
→ Establish institutions
2nd Five-year Plan
(2014-2018)
 Creativity and Innovation
 Convergence technology
 Public-private partnership
→ Create actual outcomes

9. Green Innovation: Issues and Examples
 How to induce green innovation?
• Regulation vs. market signals
• Roles of public vs. private sector
 How to ensure effectiveness?
• Incremental/partial vs. comprehensive
• Central/local/firm-level collaboration
 Innovation-enabling environment
 Global cooperation for green outcomes

10. Regulation vs. Deregulation for Eco-innovation
Source: OECD 2014
 Market signals not enough to
induce eco-innovation
• Innovation determinants(Eurostat 2010):
regulation 24%, market demand 18%...
• GHG ETS (2015), fees on food &
volume-based wastes…
 Stricter regulation affects product
competitiveness positively(OECD 2014)
 Deregulation/competition to level playing fields
• Technically rigid laws locking in technical development
• Competition-hampering regulation, uneven playground for new firms
 Smart Regulation?

11. Source from http://tegway.co
• Innovation Center as PPP Platform,
supporting R&D start-ups
• “Tegway” in Daejeon IC
 Innovative device for wearable battery
 Spin-off venture company from KAIST
 Grand-Prix Award for Top 10 technologies
to change world by UNESCO (2015)
Public vs. Private Sector Roles

12. Collaboration among actors
Eco-Friendly Energy Towns
 Hongcheon (Gangwon)
 Energy-independent village
utilizing wastes and renewables
 Make profits by selling energy
 Central/local gov., residents,
energy/environment companies
Carbon-free Islands (Jeju)
 Jeju Province
 Energy-independent islands
utilizing renewables
 Electric vehicle promoted
 Central/local government,
energy/car companies

13.  Need for comprehensive approach and policy mix
 Despite multi-faceted efforts, the greener transition of industry and
investment is not yet evident. Insufficient policy or price signal?
 Stronger regulation reduced CO2 emissions per car. But global
transport CO2 emissions increased by 28% during the same period
Incremental/partial vs. System Innovation
Source: Energy Technology Perspective 2015
CO2 emissions standards for light-duty vehicles by region

14. Global Dissemination of Green Outcomes
1st GCF Funding Project (Nov. 2015)
• Amazon Wetlands Protection
Project in Peru
• Activities
 Encourage bio-business not using
timber to protect forests
 Support energy system (solar PV+ESS)
• Total Financing: USD 9.11 Mil
 GCF 6.24, Profonape 1.07, KOICA 1.80
Reforestation Project in North Korea (2015)

15. Enabling environment for green innovation?
• Mechanism design to provide proper incentives
for green innovation
• Predictability of regulation and market signals for
eco-investment?
• Areas of policy inconsistencies/misalignment,
barriers to the diffusion of clean technologies
How to enhance public awareness on
regulation/costs on economic activities?
How to foster international cooperation to
share information and technologies
OECD’s role to further green innovation
Issues for discussion/further work

16. Thank You