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December 11, 2008

CLIMATE POLICIES FOR LOW CARBON GREEN GROWTH. December 11, 2008. Lee Byoung-Gook Director General for Climate Change Policy Planning. Ⅱ. Ⅰ. ORDER of PRESENTATION. A New Era of Green Growth. Low-Carbon Green Growth. Ⅲ. Climate Change Strategy. Ⅰ . A New Era of Green Growth. 3.

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December 11, 2008

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  1. CLIMATE POLICIES FOR LOW CARBON GREEN GROWTH December 11, 2008 Lee Byoung-Gook Director General for Climate Change Policy Planning

  2. Ⅱ Ⅰ ORDER of PRESENTATION A New Era of Green Growth Low-Carbon Green Growth Ⅲ Climate Change Strategy

  3. Ⅰ.A New Era of Green Growth 3

  4. Greater pressure on Environment & resources Environmental soundness critical for enhancing national competitiveness New solution, “Green Growth” Background • Global population growth rapid expansion of BRICs economies =>accelerated pressure on energy & resources • Climate change-induced environmental & socioeconomic problemson the rise • energy & resource security become decisive factor for national competitiveness • Developed countries formulate strategies to promote green industry as a growth driver • Past economic development paradigm is no longer viable • Low carbon, eco-friendliness accepted as key to promote new growth 4

  5. Declaration of "Low Carbon, Green Growth" President Lee Myung-bak declared a vision of “Low Carbon, Green Growth” as the new national vision to lead Korea’s future development for the next 60 years (On Aug. 15 celebrating the 60th anniversary of Korea’s foundation) ※ G8 Summit Outreach Meeting on July 9 provided the momentum • “Green growth refers to sustainable growth which helps reduce greenhouse gas emission and environmental pollution. It is also a new national development paradigm that creates new growth engines and jobs with green technology and clean energy.” (Aug.15) • In the vision of “Green Growth,” green is a broader concept that transcends environment, while growth does not conflict with but complements the environment. (Aug.29) • “It [Low carbon society] is not an option we can choose. It is a path we must take and are already taking.” 5

  6. Green Growth at a glance What is Green Growth? • A new paradigm of national development that supports sustainable growth by mitigating GHG and environmental contamination while creating new growth drivers and jobs through promotion of green technology and clean energy • ※ A term officially used by UN ESCAP in 2005 • In order to prevent climate change→ promote green growth→ shift to low-carbon society • UK Scotland (2005) : Green Jobs Strategy for Green Growth • Germany (2007) : Green Industrial Policy Report • Identified environmental & economic challenges facing EU (climate change, water shortage, etc.) and proposed response measures 6

  7. Ⅱ. Low-Carbon Green Growth 7

  8. Goal of Low-Carbon Green Growth • From a vicious cycle of energy, economy, climate, ecosystem to a virtuous cycle • Paradigm shift : Decoupling of GHG emission growth from economic growth & increased environmental sustainability Energy security Poverty Global warming Climate change Climate change response Sustainable growth Non-sustainable economic growth Increased dependence on fossil fuel Renewable energy, high energy efficiency Vicious cycle Virtuous cycle 8

  9. Green Growth Policy Orientation 1. Low-carbon policy to reduce greenhouse gas • Pursue decoupling of environmental pollution from economic growth • Minimize GHG gas emissions and environmental degradation by enhancing eco-efficiency 2. Green Technology as future growth drivers • Promote growth by using Green Technology and Green Industry as new growth engines that reduce GHG and increase eco-friendliness 9

  10. Green Growth Policy Orientation 3. Policy to promote convergence technology • Develop & export Green convergence technology using IT, BT, NT capabilities • * e.g : Green Homes using renewable energy, hydro-energy and ethanol production 4. Policy to create new jobs • Green technologies will solve the problem of “growth without employment” • * Renewable industries will generate several times more jobs than existing industries (7-10 times more for solar energy) 5. Policy to enhance corporate competitiveness • Shift to a knowledge-based economy in the post-manufacturing era • Seizing new opportunities by encouraging convergence across industries and technologies to respond to future mega-trends 10

  11. Green Growth Policy Orientation 6. Reinvent land, urban area, buildings and transport • Low carbon, green land and urban planning • Increased investment for building low carbon, eco-friendly SOC’s (such as public transport, railway, etc) • Expand Green Home·Green Building utilizing renewable energy • * Reduce energy-use by improving heat insulation systems, promote solar/ geothermal/wind energy 7. Bring a daily revolution to existing life-styles • Promote consumption of Green products, Strengthen disclosure of environmental footprint of companies • Increase support for Green products and government procurement • Induce life-style changes • * Promote bicycle-use, energy & water conservation, resources recycling, etc. 11

  12. Green Growth Policy Orientation 8. Green education·culture policies • Induce comprehensive changes in life-style and culture by taking relevant social, cultural & ethical approaches • Build national consensus through Green Culture Movement using mass media and education channels 9. Eco-friendly tax reform • By implementing eco-friendly tax schemes, encourage environmental preservation and resources conservation while creating more jobs 10. Enhancing national brand power • New “Korean Wave” by brandizing national green vision and Green Korea public campaigns • Bridging role between developed/developing countries while demonstrating global Green Leadership 12

  13. Benefits of Green Growth New national development by securing growth engines Enhanced competitiveness of national economy Low Carbon Green Growth Green Korea a mature global citizen Higher quality of life by job creation & improved environment 13

  14. Ⅲ.Climate Change Strategy 14

  15. Climate Change: A Global Top Priority Agenda Emerged as key agenda at Davos Forum (2005-2007) - Climate change the greatest risk for business management Jan. 25, 2007 Survey on 500 CEOs :Climate-induced environmental changes cited as the greatest issue expected to influence corporate management ※ Over 70% of global 500 companies said climate change is posing risk to business (Financial Times 2007) Reports released on impacts of climate change and adaptation - IPCC 4th Report (Feb, 2007), Stern Review (Dec. 2006) UN & int’l organizations discuss climate change as top agenda -UN Climate Change High Level Event(Sep. 2007) • Adoption of “Leaders’ Declaration on Climate Change” at APEC Summit(Sep. 2007) • Intensive discussion dedicated to climate change at G8 Summit Outreach Meeting[Jul.2007] 15

  16. Vision and Goals • Low Carbon, Green Growth – • “contribute to the global efforts to combat climate change • and achieve low carbon society thru green growth” Vision O B J E C T I V E 1. Climate industry as a new economic driving force 2. Improving quality of life and the environment 3. Contributing to global efforts to combat climate change ⇒ Plan of Action to materialize the Presidential Vision for “Low Carbon Green Growth”

  17. Plan of Actions “Low Carbon Green Growth” Fostering Climate Industry Contributing to the Global Efforts Improving Quality of Life 1-1. Improving energy efficiency in the industrial sector 1-2. Expanding R&D investment in Green Technologies 1-3. Developing key climate industries 2-1. Enhancing quality of life (transportation) 2-2. Green life-style change 2-3. Enhancing Adaptation 2-4. Enhancing Awareness and changing patterns 2-5. Scientific monitoring and prediction 3-1. Setting Mid-term mitigation goal 3-2. Contributing to Post-2012 negotiations 3-3. Active developing country assistance and international cooperation 17

  18. Plan of Actions (1) Fostering Climate Industry ◇ Improving energy efficiency in the industrial sector - energy intensity goals (industrial sector) * energy intensity(toe/1,000$, 2000PPP) : (2006)0.230→ (2020) 0.154 → (2030) 0.123 - Voluntary Agreement strengthened to Negotiated Agreement(NA) - Incentives (financial, tax benefits) on investments for GHG reduction - Strengthening standardization and certification : e.g. Eco Labeling ◇ Increased R&D investments in Green Technology - innovative development strategy for new future technologies - More than double gov’t R&D investment by 2012 (700 billion KRW 2008] - Develop convergence technologies using strong IT, BT, NT 18

  19. Plan of Actions ◇ Developing Key Climate Industry Fostering renewable energy industry - Increased renewable energy share: 2.24%(’06) → 11%(’30) → +20%(’50) - Initial market creation & reinforced promotion programs * ‘Million Green Home’ project, Solar Energy Town, marine energy development, etc. - Export solar & wind power generation (target market share: 5% in 2012) * solar power generation: 140 trillion KRW (’12), wind power generation: 110 trillion KRW (’12) Developing energy-efficiency improvement industry - Expanded investment in energy-efficiency improvement technologies (700 billion KRW in 5yrs) * global top class by 2030 : electricityIT, LED lighting, energy storage - Foster green car industry (Global top 4 green car manufacturer) • Nuclear energy & Eco-friendly industries • - Share nuclear power plant management & technology know-how • Support development of water companies, ‘waste-to-energy’ • industry, meteorology industry & CDM (export-oriented) 19

  20. Plan of Actions (2)국민의 삶의 질 제고와 환경개선 (2) Improving quality of life ◇ Enhancing quality of life (green transportation system) - Achieve GHG mitigation & improve the environment by cutting down social cost of traffic congestion (24.6 trillion KRW in 2006 = 2.9% of GDP) - Expand low carbon, green transportation & innovate public transit * promote use of bicycles and railways (double the share of railway transport by 2019) ◇ Green life-style change - Promote light vehicles & fuel-efficient, green cars - Expand green homes & buildings - Create low carbon society& reduce GHG from household sector - Expand forest carbon sinks &carbon cycle 20

  21. Plan of Actions ◇ Build a safe society by implementing adaptation measures - Draft nat’l/sectoral climate impacts assessment & comprehensive adaptation plan - Strengthen climate change impact assessments & vulnerability analysis - Enhance risk management against natural disasters, health threats… ◇ Promote low carbon lifestyles - Improve climate change educationin elementary/middle school curriculum - Raise consumer responsibility, environmental awareness & climate action - Organize “carbon-neutral” government/public events - Encourage public climate action by proliferating low carbon, green life style - Nurture professionals dedicated to climate response ◇ Advance climate changemonitoring & prediction capabilities - Set up monitoring system for climate & Earth environment changes - Develop climate change scenarios & observed data utilization system 21

  22. Plan of Actions (3) Contributing to global efforts ◇ Set a midterm reduction goal - Provide a clear signal for transition to low carbon society - Demonstrate commitment to contribute to global efforts - Goal based on scientific analysis & national consensus - Set reduction goals by sector & cost-effective mitigation strategy ◇ Active international negotiation strategy - Bridging role between the developed/developing countries → Contribute to Post-2012 negotiations *by proposing ‘Market-based principle’ ◇ Boost developing country assistance & international cooperation - Support projects & capacity building in developing countries * East-Asia Climate Partnership : 200 million USD for 5 years 22

  23. Key Policy Tools 1. Financial and Budgetary Support - (Public) Boost financial support from Government budget e.g. Climate Change Action Fund (tent) - Expand R&D investmentto secure core green technologies * Share of climate R&D investment in total government R&D investment:: 6.4% (’08)→ 8.5% (’12) - (Private) Provide financial & taxation incentives to induce investment from the private sector 2. Price Structure Reform - Bringclimate-friendly functionalityto existing tax scheme, Consider introducing Carbon Tax - Promote green consumption by applying ‘Polluter-Pay-Principle’ 23

  24. 3. Improve carbon intensity & eco-efficiency of major SOCs - Cut traffic congestion cost (24,6 trillion KRW), enhance sustainability - Increase energy-saving capabilities by promoting eco-friendly architecture and buildings - Build infrastructure designed to reduce waste or recycle resources 4. Legislative & institutional foundation - Lay the legal framework for low carbon, green growth * Review & evaluate central/local governments’ climate response, perform climate change impacts assessment - Set up national inventory system &consider introduction of an emissions trading scheme 5. Public awareness and participation - Raise public awareness, incorporate climate change into school curriculum 24

  25. 2008, Starting to Low-Carbon Society • Fundamental change in the Social & Economy structure Preparation Implementation Maturity GHG emission ※ preparation (decrease in emission rise), implementation (stabilization and absolute reduction), maturity (low-carbon society) 25

  26. National Emission Inventory System Importance of GHG inventory system • Basic data used to determine the level of national efforts to limit GHG emissions ⇒ Accurate inventory data is a prerequisite to identifying mitigation potential and sector • Basic data used to examine domestic state of emissions and build strategy for international negotiations (UNFCCC) • National governments that are Parties to the UNFCCC are required to: a) develop and implement GHG mitigation policies b) Submit national reports on GHG inventories and policy implementations 26

  27. National Emission Inventory System Compiling a GHG inventory • The IPCC* provides Guidelines for National Greenhouse Gas Inventories intended for use by countries to estimate GHG inventories according to a common standard • Presents methodologies for estimating GHG emissions by sector / gas • Includes types of GHG gases, GWP’s and other international standards • Korea compiles national inventory following the IPCC guidelines • GHG emissions and removals by source and sink are made public annually • More efforts needed to assure data quality * IPCC : Intergovernmental Panel on Climate Change 27

  28. Thank you 28

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