Korea's Green Growth Strategy


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A Korean approach on green growth by Jung Hwan Kim, Presidential Committee on Green Growth Republic of Korea at Climate Change and Development Roundtable, Ljubljana, Slovenia, May 2011

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Korea's Green Growth Strategy

  1. 1. 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
  2. 2. 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
  3. 3. Green Growth & Development : Revisited (1/2)• 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)
  4. 4. Green Growth & Development : Revisited (2/2)• 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 !
  5. 5. Korea‘s Low Carbon, Green Growth : Summary• 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
  6. 6. Background Green GrowthMulti-crises of Environment emerged as New alternative,environment & the core of future national ―Green Growth‖resources competitiveness Growth of world‟s  National competitiveness  Traditional „factor-intensive‟ population & depends on the capability to economic growth faces Industrialization accelerate secure resources and limitation. Energy · Resource Crises. manage environment.  Low carbon & environment- Climate change drastically  Developed countries friendliness are recognized as increased Environmental · adopted strategy to utilize the new strategic industry that Economic · Social green industry as new will lead future growth. problems. growth engine.
  7. 7. Background : A National Vision Green GrowthCreating New 60 years (announcement of a new national vision in the 60thanniversary of the founding of the Republic in August 15th 2008) Next 60 years Last 60 years Economic growth Green growth More than just a development strategy - changing people‟s behavior and way of thinking - creating a new civilization
  8. 8. Objectives & Outcome Green Growth Competitiveness New National Growth through Enhancement of Country, New Growth Engine Economy and Cities Low Carbon Green Growth Enriching Quality of Life through Job Responsible Member of the Creation and Environmental International Community, Green Improvement Korea
  9. 9. VISION – Low Carbon Green Growth Green GrowthVISION 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
  10. 10. Green Growth National Strategy Green Growth
  11. 11. Green Growth FrameworksIntegrated Approach To Achieve 3 Strategies & 10 Policy Directions 3. National GHG Reduction Goal 2. Strategy 30% reduction from BAU 4. Green Budget & Plan („2009.11) (5 Yrs Plan) 2% of GDP on Inherits the spirit of Green Growth policies the “Economic („2009.1) Development Plan” in the 60~80s („2009.7) 5. Green 1. Legal Sustained Technology Framework Drive Development Legislation of Key role for the Framework Act on the Presidential “Core” of Green Low Carbon, Green Committee on Growth through Growth („2010.4) Green Growth Competitive Industrial Base
  12. 12. Basic Act on Low Carbon Green Growth Green Growth Composition - 7 chapters and 65 articles - a basic act – it has priority over all relevant laws regarding 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.
  13. 13. Green Growth National Institution Green Growth The Presidential Committee on Green Growth (PCGG) PCGG Setting Policy direction & Meetings Agendas Monitoring 1st(‘09.2) 10 Policy Directions etc. Co-Chairs 2nd(‘09.4) Four Major Rivers‘ Restoration 29 Civil Experts 운영협의회 Core Green Technologies 17 Ministers 3rd(‘09.5) Develop & Deploy Nat‘l Strategy & 4th(‘09.7) 5 year Implementation Green Industry Climate· Green life· Policy Council Energy Policy Council SD Council 5th (‘09.8) Green Growth Education 6th(‘09.11) Nat‘l GHG Reduction Goal Secretariat 7th(‘10.2) Plans for 2010 Co- Secretary Generals 8th(‘10.7) Market Driven Green Growth 6 Bureaus 9th(‘10.10) Water, Energy and Adaptation 10th(‘10.12) Green Car, Paperless Workplace Planning Climate Green Green Life Energy Int‟l Coop. & Co-ord. Change Tech SD
  14. 14. Review on YEAR 2010 : 7 Short-Term Tasks Green Growth To accelerate「Implementation Mode」andPolicy Basis to accomplish「Concrete Outcomes」 Policy Direction Implementation with Acceleration of efforts Enhancement of full participation by to create a new national reputation the people growth engine as the host of G20 7 Action Producing action plan for national mitigation goal Tasks 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
  15. 15. 7 Short-Term Tasks for YEAR 2010 (1/7) Green Growth Action plan for national reduction goal Set up reduction goal by sector Legislation of ETS & action plan for reduction Establish global-level GHG statistics Prepare detailed plan for operation by major industry such as steel, covering allocation, registration/ petrochemical, and chemical industries management, and emission exchange Prepare tasks immediately practicable - Gov‟t draft (Feb. 11), Review / legislation by the by people and companies National Assembly (Sep.~Dec.11) Inventory by country & business site - Comprehensive action plan for GHG reduction (July)
  16. 16. 7 Short-Term Tasks for YEAR 2010 (2/7) Green Growth Make core green technologies growth engine & facilitate start-up companies of outstanding green technologies Growth Engine Next Gen. Secondary Cell Future Nuclear Power Advanced Water Treatment Improve weak points –parts/materials Tech. of eco-friendly fast reactor, Develop advanced water supply mgt. tech., Develop basic/original tech. Nuclear hydrogen production system tech. of sewage, waste water reuse Enhance mid-long term Secure competitiveness of competitiveness Foster water treatment industry future nuclear power CCS Smart Grid Establish CCS master action plan Establish infra for test bed in Jeju, legislation of special law Drastic decrease of GHG reduction cost Become int’l leader through early commercialization 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)
  17. 17. 7 Short-Term Tasks for YEAR 2010 (3/7) Green Growth Full scale promotion of greening major industries Reduction of GHG of major industries & securing new growth engine Industry-customized greening strategies High Energy Consuming Ind. Core Green Ind. Production Base Ind.steel, shipbuilding, petrochemical automobile, semiconductor, casting, mold, weld, joining, cement, paper and etc. Display, fabric and etc. heat treatment, surface treatment, plastic working Use IT & green tech. Develop eco-friendly products Establish greening strategy for- Improve energy efficiency, CO2 reduction & early commercialization 6 major base industries
  18. 18. 7 Short-Term Tasks for YEAR 2010 (4/7) Green Growth Facilitate green buildings, transportation, and green financing Facilitation of Green Buildings Expansion of Green Transportation Stricter Strengthen energy saving design std. Demand Improve congestion fee regulation Standard Expand application of green building Mgt. Designate green transportation certification special zone Energy target mgt. for buildings Public Establish integrated transit centers Energy Transp- Energy consumption statistics system ortation Expand express bus transit at Mgt. Mandate energy efficiency indication rest areas for apartments Introduce green logistics certification Green system, & transportation conversion Financial Expand eligibility of PF guarantee (eco-friendly house) Logistics agreement Support Provide support for establishment of Reduce interest rate/guarantee fee rate of ESCO joint logistics center
  19. 19. 7 Short-Term Tasks for YEAR 2010 (5/7) Green Growth Rationalize energy price & eco-friendly tax base Rationalize Energy Price Eco-friendly Tax Base Link with fuel price: cost basis pricing Eco-friendly house: Exempt acquisition/ - (Gas) Re-apply linkage with fuel price system registration tax from Mar. 10 - Differential reduction depending on CO2 reduction - (Electricity) Fully apply linkage with fuel price (5~15%, Jun.) from 2011 Car: Change tax base Prepare energy welfare system for the - Convert into mileage or CO2 emission based poor taxation system (Draft amendment of Local Tax Act, ∼Dec.)
  20. 20. 7 Short-Term Tasks for YEAR 2010 (6/7) Green Growth Green lifestyle practices based on ‗Me First‘ spirit Practice Campaign Incentives for Carbon Reduction Green Start Network, Carbon Cash-back Green Energy Family, - Cash point for purchase of low-carbon goods 1 ton of Carbon Reduction per Carbon Point 1 household, and etc. - Points provided according to energy saving Expansion of Green Consumption Food Waste Full scale implementation of Strengthen volume based food carbon labeling waste fee system - Indicate GHG emission generated Spread small size/sectioned during Production and distribution bowls for side dishes
  21. 21. 7 Short-Term Tasks for YEAR 2010 (7/7) Green Growth Facilitation of International Cooperation on Green Growth East Asia Climate Thought Leadership Climate Negotiation Partnership (EACP) on Green Growth Water Resources Mgmt. Establishment of Global Active participation in climate Green Growth Institute negotiation of post Projects Copenhagen Accord - To provide total solutions (GGGI) (June, 2010) - To secure autonomy in climate for water problem in developing - To support the establishment change policies countries of GG policies for developing countries Bridging role between developed The 2nd East Asia Climate Strengthen cooperation and developing countries Forum (June, 2010) with OECD -To continue efforts to reflect NAMA registry on future climate -Joint research on „Development change regime of Green Growth strategies
  22. 22. Key Plans for YEAR 2011 Green Growth Transforming to Green Economy and Social Structure 1 Implementing ETS and Sectoral Emission Reduction Strategy 2 Promoting Market Mechanism of Energy Price and Taxation System 3 Realizing Green Infrastructure and Transportation 4 Embedding Green Lifestyle Strengthening Green Industrial Development Base 1 Fostering Green Technology and Green Job Creation 2 Vitalizing Green Finance Sharing Green Growth Leadership 1 Contributing Climate Change Agenda 2 Bidding to Hosting COP18 (2012)
  23. 23. Climate Change : Korean Case 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 813 900 Against 800 30% BAU Prospective 700 594 Reduction 569± emissions 600 500 400 298 300 200 100 0 1990 2005 2020 2020 unit: million tons 2
  24. 24. East Asia Climate Partnership EACP 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 Active Role as a Bridge • 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) http://eacp.koica.go.kr for more information
  25. 25. Why Asia Pacific region? EACP 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)
  26. 26. Strategy and Focus : 5 priority areas EACP1 • Support water control infrastructure and relevant policy “water development to help prevent disasters and accessibility to resources fresh water to enhance the capacity to handle increasing management” water-related natural disasters2 • Lead low-carbon development across Asian cities to boost “Smart low urban energy efficiency and to lower the green house gas e carbon city” mission3 “Low carbon • Support those Asian countries experiencing high dependency on fossil fuels and severe power shortage, power while cutting down on carbon emissions generation”4 • Support the entire value chain from forestation to biomass “Forestry and through projects to promote carbon storage biomass”5 • Take the lead in Asia regarding waste related issues by “Solid waste developing a database of waste information of other treatment” countries and using it to support optimal waste management / reuse and waste-to-energy efforts
  27. 27. Key Progress in 2009 and 2010 EACP Bilateral Projects in 5 Priority Areas -17 Bilateral Projects in Climate Change Mitigation/Adaptation Multilateral Programs with International Organizations - 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 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
  28. 28. Water for Green Growth EACP Water Resources Management Project (USD 80 Million) • Azerbaijan, Mongolia, The Philippines International Dialogue Platform for Water Policy• 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 EARLY WARNING SYSTEM WATER PURIFICATION DAMS WATER SUPPLY AND DRAINAGE RESERVOIR SEWAGE TREATMENT
  29. 29. Water Resources Management Projects EACP Development of New Water Supply Sources for Yarmag area Azerbaijan(Absheron Peninsula) Mongolia(Ulaanbaatar) The Philippines A Total Solution for Water Shortage on the Absheron Peninsula Mitigating Climate Change Impacts through Sustainable Upland Watershed Management and Installation of Small Water Impoundings in Isabella and Bukidnon district
  30. 30. 1. Water and Urbanization (Ulaanbaatar, Mongolia ) Project Scope Budget Duration- Establishing a master plan for water resource development- Supplying water to new town (Yamag) (drilling 2010 USD 25 wells with riverside natural filtration method, ~2014 Million Q=20,000 m3/day)- Improving heating system of reservoir to prevent freezing and rupture 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
  31. 31. 2. Water Security and Economic Growth (Azerbaijan) Project Scope Budget Duration- Constructing water & sewage facility in targeted 8 regions USD 70 2010- Wastewater treatment reusing facility(60,000 Million ~2015 m3/day) Integrated Water- Establishing water resource integrated (incl. loan) Management System management system Background -Possible dispute with other nations due to the reduced water caused by climate change Water Distribution -Only water source is river 200 km apart , a part of Russia Network (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
  32. 32. 3. Water and Agricultural Development (The Philippines) Project Scope Budget Duration- Constructing water related facilities, such as 2010 dam (H<15m), spillway, irrigation channel, etc USD 20 ~2013- Constructing agriculture—industrial complex Million to increase the income for farming household 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
  33. 33. 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 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 IOshttp://www.gggi.org for more information
  34. 34. Activities of GGGI 1. Green Growth Plans (GGPs) - Through Country Projects, GGGI provides supports to developing countries in their endeavors to develop Green Growth Plans 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 best practices on Green Growth 4. Capacity Building - Support enhancement of developing countries‟ capacity to sustain their drive for Green Growth 5. Public-Private Partnership - GGGI connects all relevant groups for increased collaboration and efficiency
  35. 35. Green Growth Plans (GGPs)Through Country Programs, GGGI provides support to developingcountries in their endeavors to develop Green Growth Plans. Comprehensive & Policy Programs Sectoral at National & Approach Local Levels Legislation & Country-specific Implementation Institutionalization GGPs Frameworks of Green Growth
  36. 36. Green Growth Plans (GGPs) ▪ Country Projects Conducted in 2010 - Mandate from the Office of the Prime MinisterEthiopia - Focus on energy, agriculture & forestry sectors - Local partnership with the Ethiopian Development Research Institute - Mandate from the Ministry of Finance Brazil - Focus on forestry, agriculture, steel and electricity sectors - Local partnership with EMBRAPA, IPEA, INPE, INPA, EPE, etc. - Mandate from the Provincial Government of East KalimantanIndonesia - Focus on oil, gas, coal, agriculture, palm oil and forestry - Local partnership with REDD Task Force, Central Kalimantan & Kaltim Green Team
  37. 37. Green Growth Partnership : Korean Cases • Increase from 14% in 2009 to 30% by 2020 • More effective and efficient operation of ODA Green ODA • 2008 – 17 key projects with 7 countries & 4 International organizations East Asia Climate • 2009 – 14 bilateral projects, 3 water project & 3 Intl. Partnership Orgs • 2010 – 3 new projects, 3 Intl. Orgs • To assist countries in formulating their own greenGlobal Green Growth growth plans Institute (GGGI) • To serve as a global think tank in leading developing countries to a low carbon society • New and Additional Fund through Innovative Climate Finance Mechanism Cooperation • Copenhagen Accord agreed on fast start fund of $30 billion between 2009-2012 / $100 billion by 2020 a year • With ASEAN • To share successful experience of Korea‘s reforestation program
  38. 38. 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
  39. 39. Hvala ! Thank you !http://www.greengrowth.go.kr