Climate Change Actions in Korea

2010. 3. 10

Seung Jick Yoo

Senior Research Fellow
Korea Energy Economics Institute
Contents

I. Introduction
II. GHGs Reduction Goal
III. Implementation Strategies

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I. Introduction

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Declare New Vision: Low Carbon Green Growth
As a New National Vision for the Next 60yrs(2008.8.15)
60 yrs in the Future
60 yrs in the Past
Quantitative Economic Qualitative Economic Growth
Development Through Green Growth

Beyond Environmental Policy Objectives

- New Paradigm for Development
- Structural Change in Lifestyle and Thinking
→“Green Civilization”
it
’09 UN Climate Summ
it ’09 G8 Extended Summit
’’08 G8 Extended Summ 2009. 7. 8 2009. 9. 22
2008. 7. 9 New York, USA
Hokkaido, Japan L’Aquila, Italy

Announcement of Its Plan to

Support the Global Long Term Public Hearing on 3 GHG Reduction
Set National Mitigation Goal by
Target of 50% reduction by 2050 Scenarios is on the Way in Korea
2020 in 2009 as an Early Mover
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Act Now
Facing Increasing Risks of Climate Change
Temperature Rise of 0.74
over the 100 yrs
(1.5 Rise in Korea)

Desertification of 30% of
Arable Land in Asia for the
Next 20 yrs
3.9 Billion People Facing
Water Shortage in 2030
(OECD)

Enhancing Energy Security Sharing Int’l Efforts to Combat Climate

C h
97% of Energy Imported in Korea
(83% Fossil Fuel)
* Energy Import of 140.5 Billion Dollars in 2008
Further Energy Efficiency Improvements Needed
* Energy Saving is the 5th Energy
a n g e
Support Stabilization of CO2 Concentration
at 450ppm
Setting Voluntary GHG Reductions Goal by
2020 with Continuing Economic Growth and
Economic Structure of Korea
Contribution to the Success of COP 15

세계 녹색시장의 진출
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Korea : GHGs Emission in the Global Economy

Korea
Rapid Increase in CO2 Emission due to increase in Industrial Production during the past 15 years (99%
increase in 1990 ~ 2005, Ranked 1st in OECD Member Countries)
Global Positions in the World
43.3Billionton(CO2)
(22th) (16th) (17th in OECD)
hR a te
rowt
C O2 G
7bil. ton 594mil ton 11.1 ton

Share: 1.2% (1900~2000) 2005 Per Capita

Emission
(16th in the World) Historical Emission

Expectations

EU Opinion Korea’s Role

- Developed : 25~40% in 2020 from 1990 - Become an Annex-I country or Playing a
Emission Differentiated Role from Developing
Coutries
- Developing : 15~30% reduction in 2020
from BAU
II. GHGs Reduction Goal

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Analytic Framework

Systematic Approach by Research Team, Review Committee and Public Hearing

Calculate Mitigation Potentials Review
(2008. 9 ~ 2009. 6) (2009. 7)

Analytic Framework Review Committee

Experts in Economics, Energy

and Environment
Projection in Principal Economic Variables
(Oil price, GDP, Industrial Structure)

Outcome Evaluate Modeling Process

GHGs Macro
Emission -economic
Projection Impacts Review of BAUs
Mitigation
Potential

Options to Propose National

Goals

National Mitigation Goals

Task
Force KEEI, KIER, KEI, KEIT, KDI

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GHGs Emission Projection
Definition

BAU(Business As Usual): Emissions of GHGs Reflecting the Impacts of GHG

Reduction Measures Already in Place or Announced with Concrete Investment Plans

Principal Economic and Social Determinants in BAU Projections

Oil Price: Projections of Imported Oil Prices with reference to Oil Price Projections of U.S. EIA.
Population: Projections by National Bureau of Statistics. (Peaked in 2018)

2008 2010 2020 2030

Oil Prices($/bbl) 98 84 70 82

Population(mil.) 48.6 48.9 49.3 48.6

Economic Growth
Rate (%) 4.2 4.75 3.66 2.24
* Real Price in 2005 -9-
GHGs Emission Projection

 Continual Decrease in Annual Emission Growth Rate

 Decrease in CO2 Intensity(ton CO2/Million Korean Won)

Total Emission(Mton CO2) 813

CO2 Intensity(ton CO2/Million Won)

594 37%

99%
281

0.76
0.73
0.54

1990 2005 2020

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Three Scenarios of Mid-Term Reduction Goals
Unit : MMT CO2-e

Projection

900
900
813 1 2 3
800
800
21% 27% 30% % to BAU
700
700
642
594 590
600
600
569
500
500

400
400

298
300
300

200
200

100
100

00

1990 2005 2020

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Mid-Term Reduction Goals and Measures
Scenario
Scenario
Goals Criteria
Exemplary Mitigation options
w.r.t. BAU in Policy

 Promotion of Green Homes, Green Buildings

Cost Effective  Rapid Penetration of Efficient Electric Equipments and Lightings(LED)
21%
Policy and  Shifts to Low Carbon – High Efficient Transportation System
1 171 MMT Technology  Innovation in Manufacturing Processes into Green Process
CO2-e Option  Promotions of Renewables and Nuclear Power
 Introduction of Smart-Grid

 Destruction of F-Gases
27% Mitigation Cost  Promotion of Hybrid Cars
2 2.23MMT
Up to
$50/TonCO2-e
 Increase in use of Bio Fuels

CO2-e  Application of CCS in Power Plants

30%
Upper Bound
Introduction of Electric and Fuel Cell Vehicles
3 2.44MMT of Reductions
Range by EU

 State of the Art Efficiency Technology and Equipments in Households
CO2-e

* Sinks are not included.

Impacts on GDP and Consumption

Scenario 1 Scenario 2 Scenario 3

GDP -0.29% -0.37% -0.49%

Consumption per Household 130,000 Won 166,000 Won 217,000 Won

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Reduction Measures and Roles in Sectors
Implementation Realization of Sustainable Economic Growth and Social Structure by Minimizing
Strategies GHG Emission and Environmental Pollution with GHG Mitigation Goals

Low Carbon Green Consumption

Green Buildings Green Transportation
Industry/Generation /Lifestyle

Green Buildings Low Emission/High Fuel Efficiency Improvement Green Purchase

- Insulation Standards, Solar
or Geothermal
Heating/Cooling System
High Efficiency Green
Products
- LED, Top-Runner Products,
Green IT
SMART Metering
State of Art Efficiency
Equipments
Efficiency Automobiles in Production Process (Green Labeling)
Modal Shift to Public Larger Share of Low Green Lifestyle
Transportation/ Railroads/ Carbon Emission Fuels in (Eco-Driving)
Bycycle Power Generation
(Renewable, Natural Gas) Green Start
Hybrid Vehicles
- Green Life Campaign
Bio Fuel SMART GRID
Mitigation of F-GASES
Electric Vehicles, Fuel
CCS
Cell Vehicles`

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Public Hearings
Enhanced Inter-Ministerial Consultations on Mitigation Goal
More than 80 Public Hearings with the Public, Industries, and Civil Societies

Before Announcement of 3 Scenarios (2008~2009.8)

Inter-Ministerial Meetings Industrial Sector: 30 times

Vice-Ministers’ Meetings
Briefings to the Ministers and the
Prime Minister
Joint Consultation with The
Ruling Party
Consultation with the Industrial Experts
on Emission Projection and Mitigation
Technology such as Iron and Steel,
Petrochemical Industry

After Announcement of 3 Scenarios (2009.8~11)

Inter-Ministerial
Public Hearings: 50 times
Meetings
Vice-Ministers’ Meetings Public Hearings by Presidential
Agenda in Crisis Management Committee for Green Growth
Meeting Consultation Meetings with Industrial
High Level Joint Consultation Representatives
with The Ruling Party Open Forum hosted by National
Assembly, Civil Societies
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Major Issues in Public Hearings

Emission in 2020
1 2 3
900
900
800
800 21% 27% 30%
700
700
813
600
600 642 590
500
500 569
400
400
300
300
200
200
100
100
00

44% 34% 18% Household

August(Mail Survey) Burden

Opinion Enhanced
October(Phone Survey) 14% 27% 52% Public
Poll Relations

ㅇ Support National Reduction Goal less than or equal to Scenario 1

- Energy Intensive Industrial Structure
Industrial Sector - Big Burden to the Economy if GHG Mitigation Goal Is Set Below 2005 Level.
ㅇ Postpone the Announcement of the National Goal after COP 15

Issues
ㅇ Higher Mitigation Goal than Scenario 3
Civil Societies ㅇ More Ambitious Goal Needed to Play an Active Role in Global Combat against
Climate Change Well-Matched to the Economic Size of Korea

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Setting National Mid-term Reduction Goal(2009.11.17)
Decision Made on Mid-Term GHG Reductions Goal by 2020 at the
Cabinet Meeting: To Cut GHG Emissions by 30% from BAU

Decision Made for the Bigger National Interest

(Historic Cabinet Meeting)
Removing Trade Barriers, Enhancing Energy
Security, Preoccupying Global Green Markets

Transformation to Green Lifestyle with Concerted

Efforts Among Citizens, Firms and Governments
Creating More Conductive Atmosphere for all
Cabinet Meeting (11.17일) Countries’ Active Participation

Unilateral and Voluntary Goal

Announcement of Unilateral and Voluntary Mitigation
Goals to Share the Global Mitigation Efforts
- Proactive Participation in Global Efforts Against Climate
Change as an Early Mover
- Implementation of the Goals Independent of the
Outcome of COP 15 in Copenhagen
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of Korea
- Core Quantitative Target for Low Carbon Green Growth
- Accelerating Transition to Low Carbon Green Growth
Economy with Implementation of Ambitious Goal
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III. Implementation Strategies

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Build Legal Framework: Basic Act on Low Carbon
Green Growth
Composition
- 7 Chapters and 65 Articles
- A Basic Act – It Takes 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.

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Implementation Structure

Central Administrator Organizations

Structure of Green Growth Execution Green Growth Committee Acts as a Green Growth
Control Tower.
Green Growth
National Strategy Each Administration Nominates Green Growth
Strategic Manager

Local Administrator Organizations

Establish Local Green Growth Commission with
Five-Year Plan Local-government · higher education sector · civilian
groups · cultural organization, etc. and designate
Prime Minister’s Office & Ministry of Strategy and Finance Green Growth Strategy Manager

Operate “Green Growth Local-government

Integrated Plan Commission” with Head of Local Green Growth
Commission, Once Every Quarter.

Central Gov’t Stakeholders meeting

Local Gov’t Plans
Plans Promote Green Growth through CJ partnership
Central Administrator Local Administrator
Organizations Organizations
Establish Councils for Industries(3.10), Scientific
Technology (4.22) and Finance (4.28)
- Establish councils for Green Life and Green IT

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Green Budget
A Total of 107 Trillion KRW will be invested between 2009-2013 :
(’09)17.5 → (’13) 21.1 Trillion KRW

 Invest yearly about 2% Korea’s GDP (UN’s Green Investment Recommendation is GDP’s 1%)
 ’08~’12 National Financial Management Plan: R&D 10.7, SOC 7.3, Environment 3.7, Total Budget 6.2%

Sub-Total 2009 2010~2011 2012~2013 Increase Rate

107.4 17.5 48.3 41.5 10.2%

(Unit: Trillion KRW)

56.9 8.6 29.2 19.1 14.0%

28.6 4.8 10.8 13.1 9.4%

27.9 5.2 10.5 12.2 3.6%

* Investment Amount Total is exclusion of overlapping areas of investments among 10 policies (Operations) totalled.

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50% Reduction of TCO2/100Million Won by Products: 40% Energy Saving
2013 from 2008 Level
Top-Level Energy Efficient Products to the
Projection of TCO2/100Million Won Markets in the World
- 0.5W Stand-by Power : All Products Below 1W in
Ton CO2
/100M. Won 2009, Below 0.5W in 2013

Intensity - Saving in Use : 40% Efficiency Improvement

7.44
6.85 Energy Efficiency of Products
Standby Power Consumption
4.97 4.27 0.5W Standby Power Achievement
4.82 3.72 100 100%

60
40% ( 40% Saving )
15%
2008 2009 2010 2011 2012 2013
2008 2009 2011 2013

Environment Friendly Products

[ LED TV ] [ Blue-Earth Mobile Phone ] [ DDR 3 ]

- 43% Energy Saving( 183W → 105W ) - Photovoltaic Panel Equipped - 73%Energy Saving (2,564 kWh Saving]

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POSCO Reduces CO2 and Air Pollutants(NOX 90%) with FINEX

Air Pollutants Emission

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 Carbon Management with Lifecycle Assessment  HMC’s Vision to Improve Average Fuel Efficiency by 50%

Eco-friendly Tech Roadmap

Parts Manufacturing

HEV ‘09 ‘10 ‘12 ‘13 50%

Hybrid-
Avante LPI Sonata Only PHEV
Model
Low Carbon
Green Partnership
Green Plant
EV ‘10 ‘11 ‘12

Test Fleet Small Mass

Production Production
25%
FCEV
Product Disposal ‘12 ‘15

Fuel cell-
exclusive Model
Tucson
15% Successor

Start
Start

Fuel-efficiency
Improvement Rate
(%)

Recycling 2008 2010 2015 2020

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Procedure to Implement National Goal

Periodic
and Systematic
National Strategy Review Process
Public Hearing and Action Plan
And Setting
National Goal
3rd
2nd
1st
Setting up an Independent
Research Institution on
Sectoral Mitigation Mitigation for Systematic
Measures and Consistent Assessment
Setting National Goal in of the Goal
November 17, 2009
Green Tax Reform
In-depth Sectoral Targets
Setting and Assessment
Development of Green
Technology and Industry

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