Moon-Seob Youn, KEITI, Korea

Global Forum on Eco-innovation

4. Nov. 2009 / OECD

Background

New eco-innovation policy instrument

Challenges for the future

Vision of green growth & 5-year plan

I. Background

Why is Korea striving for the Green Growth ?

Economic slow down

Energy security vulnerability & climate impact

Rapid industrialization & urbanization

• Growth rate declining & growth without employment

• Necessity for new growth engines

• Import 97% of total energy requirement

• The sea level around Korea rose by 22cm for the last

40 years(3 times the global average)

• world‟s 9th biggest CO2 emmitter

• 46% of total population & vehicles in Seoul metropolitan

area

New paradigm is needed

to shift growth paradigm

from “quantitative growth”

to “qualitative growth”

4

Current issues and status of Korea

97% dependent on import, 83% fossil fuel

„04 „05 „06 „07

(Unit : 100 million $)

496667 856 950

1,415

294 231160

146

△130

Energy import

Trade balance

„08

0

GDP increase rate

△0.35%pOperating profit rate

△0.2%p

Price of commodities

△0.23%p

In case of 10% increase in oil price

* The energy import of 14.15 billion dollars in 2008. Exceeds export of

semiconductor+automobile+shipbuilding(11.09 billion dollars) * SERI(„07)

Heavier environmental burden

Small landmass, high population density(492 people/㎢)

46% of total population and vehicles in Seoul

metropolitan area covering 11.8% of land area

High pressure from rapid industrialization &

urbanizationJapan England Germany America Korea OECD

0.101 0.1310.162

0.206

0.335

0.187

* Unit of energy source (million TOE/1,000$, year 2007, IEA)

Low energy consumption efficiency High environmental pressure

5

II. Vision of the Green Growth &

5-year plan

Strategy

5Year green growth plan as medium-term plan for implementation

Ten

directions

VISION

Three

strategies

Measures for climate change

and securing energy

independence

Creation of

national growth engines

Improvement quality of life and

strengthening the status of

the country

8) Greening the land, water and

building the green transportation

infrastructure

9) Bringing green revolution into our

daily lives

10) Becoming a role model for the

international community as a

green growth leader

4) Development of green technology.

5) The „greening‟ of existing

industries and promotion of new

green industries

6) Advancement of Industrial

Structure

7) Engineering a structural basis for

the green economy

1) Effective mitigation of

greenhouse gas emissions

2) Reduction of the use of fossil fuels

and the enhancement of energy

independence

3) Strengthening the capacity to

adapt to climate change

■ Declared green growth as the national vision first in the world

• Inherits the spirit of the “Economic Development Plan” in the 1960-1980s

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Reduction of the use of fossil fuels and the enhancement of energy independence

Korea will increase energy efficiency levels to catch up with developed countries by

effectively managing the energy demand in each sector and using energy efficiency technology.

New and renewable energy supply will be increased from 2.7% in 2009 to 3.78% in 2013 by

industrializing new and renewable energy production, developing and distributing new and

renewable energy

To reduce greenhouse gas emissions that are caused by power generation plants, Korea will

enlarge the use of nuclear energy from 26% in 2009 to 27% in 2013 while also increasing the

export of nuclear power plants

* Reduction of energy intensity

per unit/value(toe/1,000 USD)* New and renewable energy use * Share of nuclear energy

2009 2013 2020 2009 2013 2020 2009 2013 2020

Targets of Major Green Indicator

0.317

0.290

0.2332.7%

3.78%

6.08%

26%

27%

32%

Major Action programs(1)

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Development of green technologies

Korea plans to make intensive efforts in developing several important green technologies in order to boost

its global market share in the relevant sector to 8% within 5 years.

The 27 core technologies were selected covering five categories of green technologies defined by national

Science & technology council.

* Share of Green technology R&D

in gross R&D expenditure

2009 2013 2020

25%

20%

16%

2009 2013 2020

10%

8%

2%

* Korea‟s market share in the global

green tech. product market

Major Action programs(2)

Targets of Major Green Indicator

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(Ref.) List of 27 core technologies

• Monitoring and modeling

for climate change

• Climate change

assessment and adaptation

• CO2 capture, storage and

processing

• Non-CO2 processing

• Assessment of water quality

and management

• Alternative water resources

• Waste recycling

• R&D in monitoring and

processing for hazardous

substances

• Silicon-based solar cells

• Non-silicon based solar cells

• Bio-energy

• Light water reactor

• Next-generation fast reactor

• Nuclear fusion energy

• Hydrogen Energy R&D

• High-efficiency fuel cell

• Plant-growth-promoting tech.

• Integrated gasification

combined cycle

• Green car

• Intelligent Infrastructure for

transportation and logistics

• Green city and urban

Renaissance

• Green building

• Green process technology

• High-efficiency light-emitting

diodes/Green IT

• IT-combined electric

machines

• Secondary batteries

• Virtual reality

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The “greening” of existing industries and promotion of new green industries

Korea will systematically manage the recycling of resources throughout the entire manufacturing

process of factor input, production, use, disposal and reuse, thereby firmly establishing the 3R-

reduce, reuse and recycle-as the governing principle.

Green industrial complexes with circulation facilities where waste energy and by-products can be

reused and recycled will be expanded from 5 in 2009 to 10 in 2013.

* Resource recycling rate

2009 2013 2020 2009 2013 2020

Targets of Major Green Indicator

17.6%

17%

15%5

10

* Number of green industrial complexes

20

Major Action programs(3)

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Bringing green revolution into our daily lives

At a local level, a voluntary low carbon smart village movement will promoted. The green village

centers at the seat of local governing entities will be expanded to 600 by 2020.

• To construct self-support energy villages (low carbon green villages)

by utilizing waste resources, biomass, solar energy, wind power, etc.

considering regional characteristics strategy

• To expand waste resources to energy from 1.9% to 33% by 2013

• Sublimating green village construction project to

„the 2nd Saemaeul Movement‟

2009 2012 2020

0

10

* Number of low carbon

green villages

600

Major Action programs(4)

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Major Action programs(5)

Becoming a role model country for the green growth in the international community

Program 1 : Environmental management master plan for developing countries

Program 2 : East Asia Climate Partnership

Korea will raise the proportion of green ODA to 20% by 2013, compared to 11% in 2007. Also, contributions

to multilateral organizations such as the UN global environment facility will be expanded.

Purpose : Enhancing bilateral environmental cooperation and excavating projects between

developing countries and Korea by implementing joint project

Budget : 0.3 ~ 0.5 Million USD per each country

Promotion Status : Vietnam (2007, VEPA), Indonesia (2008, MOE), Cambodia (2009, MOE), Azerbaijan

(2009, MENR) etc.

Purpose : To support countries in East Asia to make their economic growth compatible

with nationally appropriate mitigation actions

Budget : 200 Million USD

Water – Top Priority

- Support and promotion for the representative project that providing total solution focusing on

water problem

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Investment plan

The amount of the investment : will be 2 % of GDP

The amount of the investment to promote green growth in the Korea government represents

2 percent of GDP

• the Korea government will invest in the economy a total of 107.4 trillion won (USD 83.6 billion)

between 2009 and 2013.

• This amount is expected to induce production worth 182 to 206 trillion won( USD 141.7 billion

to USD 160.3 billion) as well as create green jobs for 1.56 to 1.81 million people in the next

five years.

(Unit : billion $)

Year total

Measures for climate

change and securing

energy independence

Creation of new growth

engines

Improving quality of life and

strengthening the status of

the country

2009 13.6 6.7 3.7 4.0

2010~2011 37.6 22.7 8.3 8.2

2012~2013 32.4 14.9 10.2 9.5

Total 83.6 44.3 22.3 21.7

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III. New eco-innovation policies and the instruments

New green governance

Reinforcement of roles for the ministry of environments

• To reinforce support function for green growth with appropriate measures of regulation and

support

• To reinforce policies for expansion of investment on environmental R&D and establishment

of sustainable production and consumption system

Strong green leadership

• To install a presidential committee on green growth directly belonging to the President and

jointly chaired by the Prime minister and a private person

• To install a green growth planning group composed of officials from individual government

ministries and private specialists to support works of the committee

Policy architecture for eco-innovation

• A set of legal, regulatory, fiscal, financial measures is contained.

• To prepare legal ground of support and regulation by establishing law of the basic act on

green growth

• Functions to integrate and coordinate eco-innovation policy issues extended over

jurisdictional areas of the several ministries will be reinforced.

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New policies and the instruments (1)

Type Description

Green Technologies

- 59 focal technologies selected by the government from promising greentechnologies as future growth engine.

- Evaluation Criteria: Technology (40%), Marketability (30%), Green nature (30%)

Green Projects - Green projects to utilize top 10 green technology areas

Green Companies - Those companies of which products upon green technologies occupy 30% or more of total sales revenue

Green certification program to facilitate green finance

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New policies and the instruments (2)

■ Purpose• To attract private investment by cutting taxes on funds invested in the green industry.

■ Subject

■ Green certification procedures• Reception of application → Certification assessment → Reviewed by coordination committee (Dedicated

organizations such as KIAT, KEITI, etc.) → Issuance of certificate

■ Contents of support• Cutting tax for green fund invested into the government certified technologies and projects.

• Preferential support for R&D grant, credit guaranty, marketing, etc.

Expansion of Green Market

Eco-labeling (1992)

Korean carbon foot print labeling (2009)

To expand products with eco-labeling certification by unearthing the

products with large spreading effect of environmental improvement

- To expand 136 product groups on 2008 → 160 groups on 2011

※ Market Volume of Eco-Products in Korea : 10 billion USD (2007)

→ 16.7 billion USD (2012)

It is a labeling system that converts green gas quantity generated from the entire procedures

of product including production, transportation, use, disposal, etc. (holistic life cycle) into

CO2 and indicate it on the product, and operated with carbon emission certification (Phase 1)

and low carbon product certification (Phase 2).

Phase 1 : Carbon emission certification

(Korean carbon foot print declaration)Phase 2 : Low carbon product certificate

(Low carbon product label)

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New policies and the instruments (3)

Promotion of government procurement and consumption spread for green products

To promote purchase of green products by the public organizations :

- Designation of 700 organizations including government agencies to purchase green products

mandatorily

※ Ratio of Green Products out of those purchased by the government on 2009 : 67.2 %

Carbon point system is an institution to lead the individual people to participate into the

greenhouse gas reduction activities personally.

- To provide incentive for the greenhouse gas reduction voluntarily carried out

- Provided carbon point can be used for cash, traffic card, merchandise coupon,

garbage separation bag, Boucher for using public facilities,

souvenir, etc.

Carbon point

Expansion of Green Market

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IV. Challenges for the future

Refinement of the green governance• To reinforce comprehensive coordinating function of the green innovation policies competitively

suggested by various ministries

• Partnership of green coordination and S&T coordination of NSTC, budget coordination of MOSF

• Role sharing between central and local governments

Leading vitality and investment from private sector• To lead vitality and investment intention from private sector to green technologies and

industries

• To build up a system for voluntary green finance by private sector rather than leading

by the government

• To improve the capability of the market to verify “degree of green” through accumulation of

information concerning about green technologies, projects and corporations

Challenges for the future

Reinforcement of bridging the death valley policy• To reinforce connection of R&D and distribution of excellent product, technology, industry

• To link small/medium businesses and large scaled corporations

• To expand public procurement through Environmental Technology Verification (ETV) system

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Establishment of eco-innovation monitoring system• To develop comprehensive evaluation index to measure and compare green growth from

nation‟s level

※ education, S&T, green growth investment, facilitating measures for greening,

GHS emission, biology diversity etc.

• To development Degree of Greening of Technology (DGT) Index

- DGT Index is a measure showing how much a specific technology is conforming to the low

carbon paradigm and is socially sustainable in the long run. (Technological Impact,

Economic Impact, Ecological Impact)

- DGT Index can be used to make the existing national R&D programs much greener

Challenges for the future

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Thank you for your attention !

KEITI comes together with you

from environmental technology development to green growth.