Oceans for Climate Change Mitigation – Strategies and Financing in Korea

1. Oceans for Climate Change Mitigation – Strategies and Financing in Korea May 6 2010 Global Oceans Conference Jung-Keuk Kang President, KORDI

2. A National Framework for Climate Change Mitigation in Korea National Green Growth Strategy (’09-’50) Green Growth 5-Year Plan (1st stage: ’09-’13) Strategy 1. Climate Change Adaptation & Achieving the Energy Self-Sufficiency Strategy 2. Expanding the New Growth Engines Strategy 3. Improving the Quality of Life & Promoting the Status of the Nation $28.6 billion $27.9 billion $56.9 billion More than $33.9 billion for direct mitigation activities

3. Ocean Renewable Energy Currents 450 MW Plant by 2015 Tidal Power 774 MW Plant by 2014 Wind 100 MW Pilot Plant by 2012 • By 2030, Generating 6,160GWh/yr (current+tidal power only) • - Equivalent to the energy supply for 1.4M households • - Equivalent to 3.49M tons of CO2 emission reduction

4. Ocean Bio-Energy & CCS Carbon Capture & Storage 10,000 Tonnage Storage by 2014 1,000,000 Tonnage Storage after 2025 Marine Bio Energy 5% of total Bio-Energy supply (Bio-Ethanol/Bio-Diesel ) by 2015 • - Equivalent to 45,000 tons of CO2 emission reduction • By 2015, Producing 25,000 kL/yr of Bio-fuel • By 2015, $90M R&D Investment • By 2020, Construction of major facilities completed & in use

5. Oceans for Climate Change Mitigation- Other Possibilities • Sources of Renewable Energy • Wave Power • Ocean Thermal Energy Conversion (OTEC), Geothermal Energy • Conservation/Restoration of the Marine Ecosystem as Natural Carbon Sink • Marine Forest, Marine Protected Area (MPA) National Marine Forestation Plan 35,000ha (2020) • 35,000ha of additional marine forest • - Equivalent to 1,285,000 tons of CO2 emission reduction 7,000ha (2012)

6. Challenges • Environmental Concerns • Increased use of the ocean space and resources inevitably damages the environment. (e.g. dyke construction for the use of tidal-energy) • Legal and Institutional Concerns • The new ocean use plans are not sufficiently integrated into the existing use & management plans. (e.g. CZM, MPA) • Turf between central and local governments • Entry Barrier for Private Sector • The private sector is reluctant to invest in high-risk technologies • The existing industry is reluctant to share a market with new ventures

7. Opportunities • UNFCCC and Post-Kyoto Regime • Push from international communities give a positive influence to the government • Voluntary emission reduction(30% BAU by 2020), and increased investment in Climate Change R&D • Ways to Involve Private Sector • New forms of private sector partnership is being created (Special Purpose Company, Consortium, etc) • Help to integrate various expertise, reduce risks, and advance and achieve the market competitiveness of technologies • Shared-Platform Strategy • Integration of technologies on shared hardware & space • Examples: {Wind + Currents + Wave} combined power plant, {Aquaculture + Wind} combined farm

8. Financing Strategy • Initiation : Government-led Drive • Implementation of Green Growth 5-year Plan by government agencies • Financing “new growth-engine” technologies • Transition: Public-Private Partnership (PPP) • Investment to venture firms & Joint projects • Technology transfer to private sector • In Maturity: Green Economy • Successful integration of climate change mitigation markets with the existing economy • Commercialized technologies & Long-term financial commitment of private sector  Private-led drive

9. Financing Strategy –Support for Developing Countries • East-Asia Climate Partnership • $200M finacial support for East Asian countries by 2012 • Yeosu Project • $10M for developing countries by 2012 • Mostly for marine environmental projects, but not limited to the climate change adaptation • Inter-Governmental Cooperation • Technology Transfer (training & joint research program) • Korea-South America, Korea-South Pacific, Korea-Southeast Asia cooperation, etc

10. Thank You !

11. 11

12. Ocean Science and Technology- Emerging Solution for Mitigation 6,500MW Tidal Power 5,000MW 1,000MW Wind Power* Current Power Current & Tidal Power (Pilot and Commercial Plant) Wave Power (Pilot Plant) Wind Power (Planning) Ocean Thermal Energy Conversion (OTEC), Geothermal Energy (Planning) Ocean Renewable Energy Biological Resources Ocean Space Nation-wide Energy Capacity Potentials 6,500MW Wave Power * Wind power: sum of ocean and land sources

13. Ocean Renewable Energy- A National Portfolio Unit: GWh Facts By 2020, Ocean Renewable Energy(tidal + current power) accounts for more than 16.5% of the total renewable energy supply. From 2008 to 2020, Ocean Renewable Energy receives the largest investment among renewable energy sectors in terms of capacity of new facilities (3,081MW, 45%) and budget ($5.4 billion, 38%). By 2030, Ocean Renewable Energy becomes the second largest renewable energy source (6,160GWh) next to Wind power (16,620GWh). It is equivalent to the energy supply for 1.4M households. *Ocean Energy: Tidal + Current Power only *Sources: 4th National Energy Supply Basic Plan ’08-’22(2008)/ 3rd National Renewable Energy Basic Plan ’09-’30(2008)