A Korean approach on green growth by Jung Hwan Kim, Presidential Committee on Green Growth Republic of Korea at Climate Change and Development Roundtable, Ljubljana, Slovenia, May 2011

1. Korea‘s Green Growth
Strategy
: A Korean Approach on Green Growth
Climate Change and Development
Roundtable, Ljubljana, Slovenia
May 2011
Presidential Committee on Green Growth
Republic of Korea

2. Agenda
• Green Growth and Development : Revisited
• Korea‘s Low Carbon, Green Growth Strategy
 Integrated National Frameworks
 Review on YEAR 2010 and Plan for YEAR 2011
• East Asia Climate Partnership (EACP) : Our Regional Approach
 Water for Green Growth
• Global Green Growth Institute (GGGI) : Our Global Approach
 Global Green Growth Partnership

3. Green Growth & Development : Revisited (1/2)
• Sustainable Development (United Nations)
– Economic + Environmental + Social Development
– UNCED(1992), WSSD(2002), RIO+20 (2012)
• Green Economy Initiative (UNEP & etc)
• Low Emission Climate-Resilient Development (UNDP)
• Green Growth (UNESCAP, 2005)
– By improving „ecological efficiency‟ (resource use efficiency +
pollution impact minimization)

4. Green Growth & Development : Revisited (2/2)
• Green Growth Strategy (OECD)
– Green growth is about fostering economic growth and development
while ensuring that the quality and quantity of natural assets can
continue to provide the environmental services on which our well-being
relies. It is also about fostering investment, competition and innovation
which will underpin sustained growth and give rise to new economic
opportunities
• Green Growth (Denmark‟s Vision)
– Economic Development through Green Energy System Without
Fossil Fuels by 2050
• Roadmap 2050 (EU)
And, More to Come !

5. Korea‘s Low Carbon, Green Growth : Summary
• A New Economic Development Paradigm for Korea
– To Solve the Triple Crunch : Energy, Climate and Economy
• Energy Challenge : $140 Billion Energy Bill (97% imported & 83% fossil fuels)
• Climate Challenge : Average Temperature Rise of 1.7 C˚ (2 times faster)
• Economic Challenge : In the Nutcracker, Jobless & Slow Growth
• Characteristics
– Put in the Top National Agenda supported by Strong Political
Leadership
=> Presidential Committee on Green Growth = Climate Change Office +
Energy Commission + Sustainable Development Commission
– Full Integration into Government & Public-Private Partnership
And, Proactive Contributions of Korea in International Development Agenda

6. Background Green Growth
Multi-crises of Environment emerged as
New alternative,
environment & the core of future national
―Green Growth‖
resources competitiveness
 Growth of world‟s  National competitiveness  Traditional „factor-intensive‟
population & depends on the capability to economic growth faces
Industrialization accelerate secure resources and limitation.
Energy · Resource Crises. manage environment.
 Low carbon & environment-
 Climate change drastically  Developed countries friendliness are recognized as
increased Environmental · adopted strategy to utilize the new strategic industry that
Economic · Social green industry as new will lead future growth.
problems. growth engine.

7. Background : A National Vision Green Growth
Creating New 60 years (announcement of a new national vision in the 60th
anniversary of the founding of the Republic in August 15th 2008)
Next 60 years
Last 60 years
Economic growth
Green growth
More than just a development strategy
- changing people‟s behavior and way of thinking
- creating a new civilization

8. Objectives & Outcome Green Growth
Competitiveness
New National Growth through
Enhancement of Country,
New Growth Engine
Economy and Cities
Low
Carbon
Green
Growth
Enriching Quality of Life through Job Responsible Member of the
Creation and Environmental International Community, Green
Improvement Korea

9. VISION – Low Carbon Green Growth Green Growth
VISION Low Carbon Green Growth
Fossil Energy Independent and Low Carbon Society
* Energy independence : (‘07) 30% →(‘12)37% →(‘30) 65%
Utilize Green Technology ∙ Industries as New Growth Engine
* Level of green tech. compared to developed countries : (‘07) 50~70% →(‘12)80%→(‘30)100%
Recognized as Green Korea
* EPI : (‘08)51st → (‘12) 30th →(‘30) 10th

10. Green Growth National Strategy Green Growth

11. Green Growth Frameworks
Integrated Approach To Achieve 3 Strategies & 10 Policy Directions
3. National GHG
Reduction Goal
2. Strategy 30% reduction
from BAU 4. Green Budget
& Plan („2009.11)
(5 Yrs Plan) 2% of GDP on
Inherits the spirit of Green Growth policies
the “Economic
(„2009.1)
Development Plan”
in the 60~80s („2009.7)
5. Green
1. Legal Sustained Technology
Framework Drive Development
Legislation of Key role for
the Framework Act on the Presidential “Core” of Green
Low Carbon, Green Committee on Growth through
Growth („2010.4) Green Growth Competitive Industrial
Base

12. Basic Act on Low Carbon Green Growth Green Growth
Composition
- 7 chapters and 65 articles
- a basic act – it has priority over all relevant laws regarding Green Growth
Key provisions
1) legal ground for the Presidential Committee on Green Growth and mandates the committee
to develop a national strategy for Green Growth.
2) mandates the government to foster and support green economy, green industry, and the
transformation of conventional industry.
3) foster financing for green technology R&D and green investment, as well as, mandates
to promote environment friendly tax reform.
4) mandates government to set concrete targets for GHG emission reduction, energy saving,
energy security, and renewable energy supply.
5) mandates for mandatory reporting of GHG emission for businesses. Provides the legal
framework to introduce cap & trade system in Korea.
6) articles on environment-friendly land use, green building, low carbon transportation,
green consumption and production, and other issues related to sustainable development.

13. Green Growth National Institution Green Growth
The Presidential Committee on Green Growth (PCGG)
PCGG Setting Policy direction & Meetings Agendas
Monitoring
1st(‘09.2) 10 Policy Directions etc.
Co-Chairs
2nd(‘09.4) Four Major Rivers‘ Restoration
29 Civil Experts
운영협의회 Core Green Technologies
17 Ministers
3rd(‘09.5) Develop & Deploy
Nat‘l Strategy &
4th(‘09.7)
5 year Implementation
Green Industry Climate· Green life·
Policy Council Energy Policy Council SD Council
5th (‘09.8) Green Growth Education
6th(‘09.11) Nat‘l GHG Reduction Goal
Secretariat
7th(‘10.2) Plans for 2010
Co- Secretary Generals 8th(‘10.7) Market Driven Green Growth
6 Bureaus 9th(‘10.10) Water, Energy and Adaptation
10th(‘10.12) Green Car, Paperless Workplace
Planning Climate Green Green Life
Energy Int‟l Coop.
& Co-ord. Change Tech SD

14. Review on YEAR 2010 : 7 Short-Term Tasks Green Growth
To accelerate「Implementation Mode」and
Policy Basis
to accomplish「Concrete Outcomes」
Policy
Direction Implementation with Acceleration of efforts Enhancement of
full participation by to create a new national reputation
the people growth engine as the host of G20
7 Action Producing action plan for national mitigation goal
Tasks
Putting 10 key green technologies in place for economic growth
Accelerating greening of key industries with focus on improving
energy efficiency
Expanding green buildings and transportation, & facilitating green finance
Reforming pricing and tax schemes for energy
Mainstreaming green lifestyles based on the spirit of “Me First”
Facilitating international cooperation on green growth

15. 7 Short-Term Tasks for YEAR 2010 (1/7) Green Growth
Action plan for national reduction goal
Set up reduction goal by sector
Legislation of ETS
& action plan for reduction
Establish global-level GHG statistics Prepare detailed plan for operation
by major industry such as steel,
covering allocation, registration/
petrochemical, and chemical industries
management, and emission exchange
Prepare tasks immediately practicable - Gov‟t draft (Feb. 11), Review / legislation by the
by people and companies National Assembly (Sep.~Dec.11)
Inventory by country & business site
- Comprehensive action plan for GHG
reduction (July)

16. 7 Short-Term Tasks for YEAR 2010 (2/7) Green Growth
Make core green technologies growth engine &
facilitate start-up companies of outstanding green technologies
Growth Engine
Next Gen. Secondary Cell Future Nuclear Power Advanced Water Treatment
Improve weak points –parts/materials Tech. of eco-friendly fast reactor, Develop advanced water supply mgt. tech.,
Develop basic/original tech. Nuclear hydrogen production system tech. of sewage, waste water reuse
Enhance mid-long term Secure competitiveness of
competitiveness Foster water treatment industry
future nuclear power
CCS Smart Grid
Establish CCS master action plan Establish infra for test bed in Jeju,
legislation of special law
Drastic decrease of GHG reduction cost Become int’l leader through
early commercialization
Start-up Companies with Green Tech.
(Start-up) Form start-up investment fund (e.g. Green Start-up Fund)(100 Million USD)(Jun.)
Establish business incubator specializing in green industries,
foster 1,000 green tech. ventures by’13 (200 by‟10)

17. 7 Short-Term Tasks for YEAR 2010 (3/7) Green Growth
Full scale promotion of greening major industries
Reduction of GHG of major industries & securing new growth engine
Industry-customized greening strategies
High Energy Consuming Ind. Core Green Ind. Production Base Ind.
steel, shipbuilding, petrochemical automobile, semiconductor, casting, mold, weld, joining,
cement, paper and etc. Display, fabric and etc. heat treatment,
surface treatment, plastic working
Use IT & green tech. Develop eco-friendly products Establish greening strategy for
- Improve energy efficiency, CO2 reduction & early commercialization 6 major base industries

18. 7 Short-Term Tasks for YEAR 2010 (4/7) Green Growth
Facilitate green buildings, transportation, and green financing
Facilitation of Green Buildings Expansion of Green Transportation
Stricter Strengthen energy saving design std. Demand Improve congestion fee regulation
Standard Expand application of green building Mgt. Designate green transportation
certification special zone
Energy target mgt. for buildings Public Establish integrated transit centers
Energy Transp-
Energy consumption statistics system ortation Expand express bus transit at
Mgt. Mandate energy efficiency indication rest areas
for apartments Introduce green logistics certification
Green system, & transportation conversion
Financial Expand eligibility of PF guarantee
(eco-friendly house) Logistics agreement
Support Provide support for establishment of
Reduce interest rate/guarantee fee
rate of ESCO joint logistics center

19. 7 Short-Term Tasks for YEAR 2010 (5/7) Green Growth
Rationalize energy price & eco-friendly tax base
Rationalize Energy Price Eco-friendly Tax Base
Link with fuel price: cost basis pricing Eco-friendly house: Exempt acquisition/
- (Gas) Re-apply linkage with fuel price system registration tax
from Mar. '10 - Differential reduction depending on CO2 reduction
- (Electricity) Fully apply linkage with fuel price (5~15%, Jun.)
from 2011 Car: Change tax base
Prepare energy welfare system for the - Convert into mileage or CO2 emission based
poor taxation system (Draft amendment of Local Tax Act,
∼Dec.)

20. 7 Short-Term Tasks for YEAR 2010 (6/7) Green Growth
Green lifestyle practices based on ‗Me First‘ spirit
Practice Campaign Incentives for Carbon Reduction
Green Start Network, Carbon Cash-back
Green Energy Family, - Cash point for purchase of low-carbon goods
1 ton of Carbon Reduction per Carbon Point
1 household, and etc. - Points provided according to energy saving
Expansion of Green Consumption Food Waste
Full scale implementation of Strengthen volume based food
carbon labeling waste fee system
- Indicate GHG emission generated Spread small size/sectioned
during Production and distribution
bowls for side dishes

21. 7 Short-Term Tasks for YEAR 2010 (7/7) Green Growth
Facilitation of International Cooperation on Green Growth
East Asia Climate Thought Leadership
Climate Negotiation
Partnership (EACP) on Green Growth
Water Resources Mgmt. Establishment of Global Active participation in climate
Green Growth Institute negotiation of post
Projects Copenhagen Accord
- To provide total solutions (GGGI) (June, 2010)
- To secure autonomy in climate
for water problem in developing - To support the establishment change policies
countries of GG policies for developing
countries Bridging role between developed
The 2nd East Asia Climate
Strengthen cooperation and developing countries
Forum (June, 2010)
with OECD -To continue efforts to reflect
NAMA registry on future climate
-Joint research on „Development
change regime
of Green Growth strategies

22. Key Plans for YEAR 2011 Green Growth
Transforming to Green Economy and Social Structure
1 Implementing ETS and Sectoral Emission Reduction Strategy
2 Promoting Market Mechanism of Energy Price and Taxation System
3 Realizing Green Infrastructure and Transportation
4 Embedding Green Lifestyle
Strengthening Green Industrial Development Base
1 Fostering Green Technology and Green Job Creation
2 Vitalizing Green Finance
Sharing Green Growth Leadership
1 Contributing Climate Change Agenda
2 Bidding to Hosting COP18 (2012)

23. Climate Change : Korean Case
Emission Trend
• Doubled emission during the 1990s
• Due to rapid economic growth based on manufacture
• 298 mil. t CO2 (1990) – 594 mil. t CO2 (2005)
Reduction Target
• 30% BAU reduction by 2020
• Unilateral implementation without conditions
Emission Prospect
813
900 Against
800 30% BAU Prospective
700 594 Reduction 569± emissions
600
500
400
298
300
200
100
0
1990 2005 2020 2020
unit: million tons
2

24. East Asia Climate Partnership EACP
Aid for Green Growth in Climate Change Mitigation/Adaptation
• Announced at G8 Extended Summit Meeting (Toyako Japan, 2008.7)
• USD 200 Million for 5 years (2008 - 2012)
• New and Additional Resources for global climate action
Active Role as a Bridge
• Korea became the first country to successfully transition from aid recipient
to donor country by officially joining the OECD‟s Development Assistance
Committee (DAC) in 2010
• As one of Korean initiatives in official development assistance (ODA),
the EACP will focus efforts to combat climate change by building on Korea‟s
capability to foster cooperation between developing and developed countries
(Green ODA : Increase from 14% in 2009 to 30% by 2020)
http://eacp.koica.go.kr for more information

25. Why Asia Pacific region? EACP
Fastest growing economy and population
- Asia‟s population is expected to grow from 4 → 5 billion (2009 →2050)
- Energy consumption and associated emissions in Asia will significantly
increase until 2030 driven by fast economic growth and growing middle class
Great demand for climate change adaptation
- Cyclone Nargis (May 2008) just a few example of climate change
- Melting of Himalayan glacier that feed into major rivers in Asia
Most opportunities in GHG mitigation
- 70% of CDM projects are occurring in East Asia
- Close to half of global opportunities for GHG mitigation (McKinsey report)

26. Strategy and Focus : 5 priority areas EACP
1 • Support water control infrastructure and relevant policy
“water
development to help prevent disasters and accessibility to
resources
fresh water to enhance the capacity to handle increasing
management” water-related natural disasters
2
• Lead low-carbon development across Asian cities to boost
“Smart low urban energy efficiency and to lower the green house gas e
carbon city” mission
3
“Low carbon • Support those Asian countries experiencing high
dependency on fossil fuels and severe power shortage,
power
while cutting down on carbon emissions
generation”
4
• Support the entire value chain from forestation to biomass
“Forestry and
through projects to promote carbon storage
biomass”
5
• Take the lead in Asia regarding waste related issues by
“Solid waste developing a database of waste information of other
treatment” countries and using it to support optimal waste
management / reuse and waste-to-energy efforts

27. Key Progress in 2009 and 2010 EACP
Bilateral Projects in 5 Priority Areas
-17 Bilateral Projects in Climate Change Mitigation/Adaptation
Multilateral Programs with International Organizations
- ADB : Economics of Climate Change and Low Carbon Growth Strategies in Northeast Asia
- UNESCAP : Development of a Low Carbon Green Growth Roadmap for East Asia
- UNEP : Water Management and Resource Efficiency for Green Growth in East Asia
- WB : Low-carbon/Green Special Economic Zones Program
- WHO : Strengthen Control of Vectorborne Diseases to Lessen the Impact of Climate Change
- UNIDO : Transfer of Environmentally Sound Technologies in Cambodia
Policy Dialogue : The 1st & 2nd East Asia Climate Forum
- Finding the roadmap to Green Growth in Asia (Seoul Initiative)
- Launch of GGGI (Global Green Growth Institute)
Building knowledge hub for Aid on Green Growth
- Capacity Building
- Research Programmes

28. Water for Green Growth EACP
Water Resources Management Project (USD 80 Million)
• Azerbaijan, Mongolia, The Philippines
International Dialogue Platform for Water Policy
• Water and Climate Change Adaptation in Asia Pacific
• Project on Water for Green Growth (World Water Council)
• UNSGAB & Members of National Assembly in Asia Pacific
EARLY WARNING SYSTEM WATER PURIFICATION
DAMS WATER SUPPLY AND
DRAINAGE
RESERVOIR SEWAGE TREATMENT

29. Water Resources Management Projects EACP
Development of New Water Supply
Sources for Yarmag area
Azerbaijan(Absheron Peninsula) Mongolia(Ulaanbaatar)
The Philippines
A Total Solution for Water Shortage
on the Absheron Peninsula
Mitigating Climate Change Impacts through Sustainable
Upland Watershed Management and Installation of Small
Water Impoundings in Isabella and Bukidnon district

30. 1. Water and Urbanization (Ulaanbaatar, Mongolia )
Project Scope Budget Duration
- Establishing a master plan for water resource
development
- Supplying water to new town (Yamag) (drilling 2010
USD 25
wells with riverside natural filtration method, ~2014
Million
Q=20,000 m3/day)
- Improving heating system of reservoir to
prevent freezing and rupture
Background
-Increased nomad population to Ulaanbaatar and Deteriorating
water supply
-Nomads who suffered a great loss of live stocks due to extreme
cold climate move to the capital city
- Yearly precipitation in Ulaabaatar : 250mm
Expected Outcomes
-Benefits of clean water supply to 330,000 residents in new town
and nearby poverty area (Ger tent village)
- Improving the quality of life for those who became poverty group
due to the climate change

31. 2. Water Security and Economic Growth (Azerbaijan)
Project Scope Budget Duration
- Constructing water & sewage facility in targeted
8 regions
USD 70 2010
- Wastewater treatment reusing facility(60,000
Million ~2015
m3/day) Integrated Water
- Establishing water resource integrated (incl. loan) Management System
management system
Background
-Possible dispute with other nations due to the reduced water
caused by climate change Water Distribution
-Only water source is river 200 km apart , a part of Russia Network
(there are no other water source)
-Semi desert area increase 2~3 times because precipitation
decreased by 19% (a scenario UN reported)
Expected Outcomes
- Proposing solutions by securing a new concept of water resource
to areas of dispute over water resource due to climate change

32. 3. Water and Agricultural Development (The Philippines)
Project Scope Budget Duration
- Constructing water related facilities, such as
2010
dam (H<15m), spillway, irrigation channel, etc USD 20
~2013
- Constructing agriculture—industrial complex Million
to increase the income for farming household
Background
- Frequent flood and drought due to climate change
- Temperature increase 0.61℃ in average for the last 50 years,
which makes the water evaporate more from farm land
- Due to the drought caused by El Nino effect, harvest quantity
dropped significantly which led the famers to the poverty level.
Accordingly, the nation now imports rice, even though it was a
rice exporting county (reduced by 820,000 ton/year of rice,
and 450,000 ton/year of corn)
Expected Outcomes
- Adapting to climate change and Improving rice production
(13,000 ha and 9,000 households)
- Vitalizing local economy with more population flowing into
agriculture-industrial complex

33. Another Approach … Globally
Global Green Growth Institute (GGGI)
• Announced at the 15th UN Climate Change Conference (Copenhagen, 2009.12)
• Found with initial Korean fund of annual USD 10 Million for 3 years (2010 ~ 2012)
• Other Funding from Denmark, U.A.E, Australia and etc
• Global Asset for the Global Community: an inter-governmental organization by 2012
An independent, international non-profit organization
• Dedicated to supporting the new model of economic development, ‗Green Growth‘
• Partnership with central & local governments, industry & business, academia and IOs
http://www.gggi.org for more information

34. Activities of GGGI
1. Green Growth Plans (GGPs)
- Through Country Projects, GGGI provides supports to developing countries in their
endeavors to develop Green Growth Plans
2. Research
- Develop Green Growth Theory and Models for the new development paradigm
3. Knowledge Sharing
- Focus on the “Power of Example” by accumulating and disseminating the world‟s best
practices on Green Growth
4. Capacity Building
- Support enhancement of developing countries‟ capacity to sustain their drive for Green
Growth
5. Public-Private Partnership
- GGGI connects all relevant groups for increased collaboration and efficiency

35. Green Growth Plans (GGPs)
Through Country Programs, GGGI provides support to developing
countries in their endeavors to develop Green Growth Plans.
Comprehensive & Policy Programs
Sectoral at National &
Approach Local Levels
Legislation & Country-specific Implementation
Institutionalization GGPs Frameworks
of Green Growth

36. Green Growth Plans (GGPs)
▪ Country Projects Conducted in 2010
- Mandate from the Office of the Prime Minister
Ethiopia - Focus on energy, agriculture & forestry sectors
- Local partnership with the Ethiopian Development Research Institute
- Mandate from the Ministry of Finance
Brazil - Focus on forestry, agriculture, steel and electricity sectors
- Local partnership with EMBRAPA, IPEA, INPE, INPA, EPE, etc.
- Mandate from the Provincial Government of East Kalimantan
Indonesia - Focus on oil, gas, coal, agriculture, palm oil and forestry
- Local partnership with REDD Task Force, Central Kalimantan &
Kaltim Green Team

37. Green Growth Partnership : Korean Cases
• Increase from 14% in 2009 to 30% by 2020
• More effective and efficient operation of ODA
Green ODA
• 2008 – 17 key projects with 7 countries & 4 International
organizations
East Asia Climate • 2009 – 14 bilateral projects, 3 water project & 3 Intl.
Partnership Orgs
• 2010 – 3 new projects, 3 Intl. Orgs
• To assist countries in formulating their own green
Global Green Growth growth plans
Institute (GGGI) • To serve as a global think tank in leading developing
countries to a low carbon society
• New and Additional Fund through Innovative
Climate Finance Mechanism
Cooperation • Copenhagen Accord agreed on fast start fund of $30
billion between 2009-2012 / $100 billion by 2020 a year
• With ASEAN
• To share successful experience of Korea‘s
reforestation program

38. Green Growth Partnership : Perspectives from the World
• UNEP pledges Green Growth partnership with Korea (19 Aug 2009)
- It is in Asia where the green economy has seen the biggest green light.
Indeed, two thirds of the global green stimulus packages have been in
countries such as China, Japan, the Republic of Korea and Australia.
• UNEP report called for an investment of 1% of global GDP
• Korea‟s ambitious package amounts to around 2% of GDP.
• OECD Declaration on Green Growth proposed by Korea
(adopted at OECD Ministerial level on 25 June 2009)
- We strengthen our efforts to pursue green growth strategies as part of our
response to the current crisis and beyond, acknowledging that ‗green‘ and
‗growth‘ can go hand-in-hand.
• Final Report on Green Growth Strategy to be adopted in May 2011
• Indicators on Green Growth to be explored

39. Hvala !
Thank you !
http://www.greengrowth.go.kr