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Korea’s Green Growth

Vision and Five-Year Plan

Nov 2009

JinBae HongDirector, Presidential Committee on Green Growth

Why is Korea striving for Green Growth?

Climate change impact

Energy security vulnerability

Economic slow-down

- average temperature rise 1.7℃ (2 times more than world average)

- 140 billion USD energy bill

- growth rate declining since the Asian economic crisis in late 1990s- growth without rise in employment

“New path

is needed”

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Next 60 years

Green growthLast 60 years

Economic growth

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What is Green Growth?

What do we mean by Green Growth

<Elements of Green Growth>

Green growth

paradigm

Contribution

to the global

community

Improvement

in quality

of life

Green

Technology as

a new growth

engine

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More than just an environmental policy- Conventional view between growth and environment: trade-off

- Green growth: turn trade-off to synergy

Strong Green Leadership

-Place this vision at the top of national agenda -Presidential Committee on Green Growth

Features of the Green Growth in Korea

Fast integration of the Vision in all sectors

- meaningful partnership with private council (business, financial sector, technology experts etc.)

Turning it into “real actions”

Strong industrial base in relevant areas

- IT, large competent players

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3

key role for the Presidential Committee on Green Growth

Sustained Drive

How to Drive Green Growth Actions

-inherits the spirit of the “Economic

Development Plan” in the 60~80s

* 5 year implementation plans

- new “green saemauel movement”

StrategyPlan

- 2% of GDP

- Green new deal, R&D, SOCGreenBudget

early ratification of

the Basic Act on Green Growth

LegalFramework

National midterm GHG reduction target - set this year -

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National Strategy for Green Growth

Background

- Approved on July 6 by the Presidential Committee & the Cabinet Meeting- a multi-agency + research institute participating project

Key Objective & Agenda

A Top 7 Green Nation by 2020, Top 5 by 2050 Vision

Objectives

10 Key

Agenda

Climate Change

Adaptation &

Energy Security

Create New Engine

for GrowthEnhance Quality of

Life & Int’l Leadership

• Efficient GHG mitigation

• Greater independence

from fossil fuel & energy

security

• Building climate

resilience

• R&D for green tech.

• Greening existing

industry & fostering

green industry

• Toward high-tech

industries

• Lay the foundation

for green economy

• Green transportation &

land management

• Green life-style

• International leadership

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4

Strategies

•National mid-term GHG reduction target

- establish carbon monitoring and mgt system to enhance carbon visibility

• Encourage Carbon-3R Activities

• Inter-Korea Cooperation: reforestation of North Korea

Indicative target

1. Low Carbon Society

19.8%(’50)

(’20)

(’09)

17.6%

17%

Reduce GHGsCarbon-3R Rates

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2. Energy Security

Enhance Energy Independence

Strategies

• Energy conservation

• Expand clean energy: renewable (ex: solar cell, fuel cell), 2.7%/2009 → 6%/2020

• Build safe nuclear energy facilities: 26%/2009 → 32%/2020

• Expand off-shore energy source development

Indicative target

100%(’50)

(’20)

(’09)

50%

32%

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3. Strengthen Capacity to Adapt Climate Change

Strategies

• Establish climate change monitoring& early warning system

• Improve climate adaptation & address related health risks

• Food security: eco-friendly agriculture product 4.5%/2009 → 18%/2020

• Improve water resources management: „4 Major River Restoration Project‟

Indicative target

22.2billion㎥(’50)

(’20)

(’09)

21.4billion㎥

18.6billion㎥ 수질개선 수자원확보

Secure Water Resources

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4. Develop Green Tech

Strategies

• Development of Green tech innovation

• Increase Investment in Green R&D: 1.2 billion USD/2008 → 2.4 billion USD/2013

• Key green technologies

- advanced LED, CCS, Green Cars, Renewables(high-end solar cell), fuel cell,

smart grid, green ICT product

Indicative target

Invest in Green tech R&D

30%(’50)

(’20)

(’09)

25%

16%

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Export in Green Products

35%(’50)

(’20)

(’09)

22%

10%

5. Foster Greening Industries

Strategies

•Greening conventional industries: steel, ship building, etc

- upgrade industrial park for green cluster,

- innovate each link of value chain

- apply energy efficient technology

•Double the resource-circulation rate: 10%/2009 → 22%/2020

Indicative target

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6. ‘Greenovate’ Industrial Structure

Strategies

• High tech convergence industry: green ICT, nano technology

• High value added service industry: medicare service, content

- Build giga byte network infrastructure and strengthen IPR

Indicative target

(’50)

(’20)

(’09)

Export in contents

$50billion

$10billion

$5.8billion

Export in IT convergence

industry$349billion

$144billion

$ 75.5billion

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Domestic Carbon Market

5 trillion won(’50)

(’20)

(’09)

2 trillion won

Getting ready

7. Build Green Economy Basis

Strategies

• Develop Carbon Market: 1.6 billion USD in 2020

- Cap & trade system, emissions related business

• Promote Green Financial Infrastructure

- Green certificate system

- Eco-tax

• Create green jobs: green training and education system, 300 green social companies

Indicative target

13

8. Green Land·Transportation

Green Model Cities

(’50)

(’20)

(’09)

10

5

0

30%

26%

18%

Proportion of railway transportation

Strategies

• Green Home & Green Buildings rating system

• Green city model

• Green Transportation: promote green cars(hybrid, EV), bicycles, railway

Indicative target

14

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Carbon label certified products

9. Green Life Revolution

4,000 items(’50)

(’20)

(’09)

1,000 items

50 items

9. Green Life Revolution

Strategies

•Promote green consumption & green lifestyle

- Introduce Eco-point system & expand Carbon labeling

- Launch green growth campaigns & education for public awareness

Indicative target

15

EPI

51st

8th(’50)

(’20)

(’09)

20th

Green ODA

40%

30%

14%

10 Global Green Partnership

Strategies

• Bridge between developed countries and developing countries

• Increase Green ODA & support developing countries

- Build „East-Asia Climate Partnership‟ : 200 million USD/4 year

Indicative target

16

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Challenges Ahead

Support from business community

- meeting its needs to adapt & change

- setting a price on target

: emission trading & carbon tax

Continued support from the public

- the key to success of Green Growth

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Green Growth is not plan B, it‟s the Plan A