Green Technology: New Environmental Costs?

1. Green Technology: New Environmental Costs? International Conference on Practising Green Growth 2011.5.30. Paris, France Suh-Yong Chung Professor, Korea University Member, Presidential Committee on Green Growth Views expressed by the author don’t represent the official views of the Korean government

2. NO! It is an opportunity for the (green) growth, not an additional burden to the society, if appropriate policy development and coordination is made both at the domestic and international levels! Suh-Yong Chung

3. Contents • Green Growth as an alternative way of addressing climate change • Achieving Green Growth through Green Industry and Technologies • Opportunities • Challenges • Case Study: Korea’s Green Growth Policy • Opportunities • Challenges • Recommendations Suh-Yong Chung

4. Mitigation Target Suh-Yong Chung

5. Mitigation Options • Regulation • ETS • Carbon Tax • Project Mechanisms: JI, CDM • Other means Suh-Yong Chung

6. Limitations of UNFCCC • Post 2012 Regime Building • Bali Action Plan • Limited Achievements in Copenhagen • Some Progress in Cancun • But, still not enough to meet the 450 ppm target Suh-Yong Chung

7. Limitations of UNFCCC • Reason: Politicization of UNFCCC • Two track approach • Annex I vs. Non-Annex I • States’ concern over the additional costs for their development • Global interests of reducing GHGs vs. states’ interests of economic development without any additional costs Suh-Yong Chung

8. Alternative Strategy: Green Growth Suh-Yong Chung

9. How to Achieve Green Growth? Suh-Yong Chung

10. Green Stimulus Package • In response to the global economic crisis, global commitment over US$512 billion was made in the form of economic stimulus packages • In Asia, the largest packages were extended by: • China – US$649.1 billion (over 15% of its GDP) • Japan – US$639.9 billion • A large part of stimulus packages = Green Projects • The ROK – 81% is green projects • China – 38% • The US – 12% Suh-Yong Chung

11. Green Stimulus Packagesource: FT, February 2009 Suh-Yong Chung

12. Green Industry • Green stimulus packages focusing on developing green industries & technologies = not the traditional approach • They focus on climate change mitigation related technologies and industries • Green Industry • Any industry that commits to reducing the environmental impact of its processes and products (UNIDO) Q: Can green industry & technology act as a driver of economic development in the regions, and why does that driver have to be green industry & technology and not something else? Suh-Yong Chung

13. Green Technology Market Potential • World market for environmental goods and services = US$1.3 trillion (UNEP) • Growing environmental service market • Notable growth in water and wastewater, waste management, generation technologies, air pollution control & environmental consultancy • Rapid growth in renewable energy and low carbon technologies  over 10% per year Suh-Yong Chung

14. Green Industry • Regions such as Asia have undergone fossil fuel-intensiveeconomic development! • Efficient use of resources is necessary • Alternative energy resources need to be sought • Green industry is the way to increase resource efficiency and to provide alternative energy sources Policies to promote the green industry can be a viable strategy to solve the serious environment problems of the region and also guarantee fast and sustainable economic growth Suh-Yong Chung

15. Green Technology Market Potential • Growing investment in green technology • Example: Annual growth rate of green technology in Asia (2006-2008): 40 percent Suh-Yong Chung

16. Green Technology Market Potential • Asia becoming a major manufacturer of green products for new clean technology • New investment in solar & wind energy sectors  12% increase from 2008 (Energy and Resources Institute) Suh-Yong Chung

17. Challenges Ahead • Lack of institutional experiences in coordinating policies at the regional level • Different focuses • Small number of advanced economies (China, Japan, Korea, Indonesia, etc) • Large number of developing countries (issue of meeting basic needs) Suh-Yong Chung

18. Challenges Ahead • Limited regional capacity of resource mobilization • Scattered distribution of ODA based resources • Asian Development Bank • World Bank • Lack of understanding on the importance of green growth in the region Suh-Yong Chung

19. Korea’s Green Growth Policy • Korea as the world’s 9th largest CO2 emission country • 2008, President Lee announced Low Carbon Green Growth Policy as a means to realize low-carbon economy • Korea specific top-down approach based policy Suh-Yong Chung

20. Korea’s Green Growth Policy Suh-Yong Chung

21. Korea’s Green Growth Policy Suh-Yong Chung

22. Korea’s Green Growth Policy • Towards Low Carbon, Green Growth: • Adoption of the Basic Law on Green Growth • Creation of the Presidential Committee on Green Growth as the main coordination body • Green Growth 5-Year Implementation Plans • Developing green technology • Greening industry • Advancing the industrial structure • Establishing a green economy Suh-Yong Chung

23. Korea’s Green Growth Policy Suh-Yong Chung

24. Korea’s Green Growth Policy • Korea pledged to commit approximately US$89.8 billion between 2009 and 2013 Suh-Yong Chung

25. Korea’s Green Growth Policy • Private sector’s response • The CEOs of companies expressing their desire to nurture green growth business as their key business • Major interest to companies = renewable energy and emission-reduction technology • Major conglomerates such as Samsung Electronics and LG Group are taking part in green growth Suh-Yong Chung

26. Challenges • Limitations of top-down oriented policy: not enough tangible results • PCGG’s policy development without having its direct authority in developing relevant green science and technology R&D policy measures Suh-Yong Chung

27. Challenges • Issues in defining green growth • Macro growth economic theory vs. environmental economic theory Suh-Yong Chung

28. Challenges • Stakeholder participation • Lack of full engagement of the relevant ministries • Limited participation of civil societies • Lack of partnership with private sectors Suh-Yong Chung

29. Challenges • Enough Global Leadership? • Global Green Growth Institute • East Asia Climate Partnership • G20 • Nuclear Security Summit Meeting • UNFCCC Cop meeting in 2011 Suh-Yong Chung

30. Challenges • Domestic Political Uncertainty to ensuring the continuation of Green Growth Policy beyond 2012 • Presidential election in 2012 • Communications with relevant political stakeholders Suh-Yong Chung

31. Recommendations: Outside-in Approach Suh-Yong Chung

32. Thank you!mahlerchung@yahoo.com