Green Growth - A New Path For Korea

Presidential Committee on Green Growth Republic of Korea 136 Seolin-dong, Jongno-gu, Seoul, Korea 110-729 Tel +82-2-735-2539, Fax +82-2-735-2162 www.greengrowth.go.kr

www.greengrowth.go.kr

At the same time, countries of the world need to pursue a “global deal” aimed at implementing policies of fiscal expansion to solve the worldwide economic recession and resolve massive layoffs. I am certain that if they achieve such a “global deal” through cooperation and joint efforts, nations around the world would be able to solve the current global financial crisis, because only a global policy will be effective in solving a global crisis. (Keynote Address by President Lee Myung-bak at Global Korea 2009)

A National Vision for the Next 60 Years ‘Low Carbon Green Growth’ is a national vision that will take Korea into the next 60 years. As proclaimed by President Lee Myung-bak on the occasion of the 60th anniversary of the founding of the Republic on 15 August 2008, Korea has embarked on a new journey to a different path of economic development - a green path.

More than an Environmental Movement Green Growth is not just another environmental program to remediate environmental pollution or mitigate greenhouse gas - It is much bigger. Environmental policies in the past have often focused on end-of-pipe solutions. Many times, they were caught in an endless debate over ‘environment protection’ and ‘economic prosperity.’ A New Paradigm for Economic Growth Green Growth brings a new paradigm to economic development. It seeks to break away from the conflicting nature of “green” and “growth” and achieve economic growth while maintaining environmental integrity. Green Growth will be the guiding principle of development for Korea. Korea will promote economic activities in line with 3 key principles of: ① Maintaining productive economic activities while minimizing the use of energy and resources; ② Minimizing environmental pressure with every use of energy and resource; and ③ Making investments on environment a driver for economic growth. Korea’s Strategy Against Global Economic Recession The global economy is facing one of the greatest economic challenges in history. It is time for all countries to stimulate the domestic economy and create new jobs while strengthening their resilience to future challenges. Korea’s stimulus plan will focus on Green Growth. It aims to rise over the economic downfall by restructuring and strengthening its economy, changing the consumption and production pattern, and creating new “green collar” jobs and green industries.

Creation of a New Green Korea Green Growth will be the major driver of change in Korea, from economic policies to people’s life style. Transition to a New 60 Years Korea has achieved tremendous economic achievements in the last 60 years. Torn apart by war and suffering from absolute poverty, Korea was one of the poorest countries in the world. Despite a late start in industrialization, Korea is now the 12th largest economy and is a worldwide leader in a number of key industries, such as semiconductors, ship-building, etc. However, Korea needs to find a new and more sustainable path for further development. High overseas dependence (97%) on energy source and relatively low energy efficiency in industries, it is imperative that Korea reform its production and consumption pattern.

Changing Economy Structure and Creating a New Life Style Korea’s resource intensive development strategy has taken its toll on the environment. Green Growth will facilitate Korea’s transition to a knowledge - based economy and bring greater and greener values to its production. Green Growth will change people’s life styles. Education, increased awareness and promotion of behavioral changes, will help make Korea to be a better place to live in for generations to come. Dongyang Solar Power Plant in Sinan, Jeollanam-do is the world’s largest solar power plant.

Presidential Committee and the Framework Law on Green Growth

Currently “Low Carbon, Green Growth” is a key catchphrase in Korea. Since the vision was proclaimed in August 2008, the Korean government has launched a series of bold green initiatives to help Korea leapfrog into a low carbon society. The 1st National Basic Energy Plan (2008~2030) and Comprehensive Plan on Combating Climate Change The concept of Green Growth was integrated into the national energy and climate change plans. National energy plan, which was passed on 20 August 2008, has set the goal of increasing the share of renewable energy to 11% by 2030. Climate change plan is the most comprehensive and ambitious plan Korea has developed in addressing climate change which includes adaptation and international efforts.

‘Green New Deal’ Stimulus Package Announced on 6 January 2009, the Stimulus Package is an investment plan of 50 trillion KRW (38.5 billion USD) for the next 4 years on 9 key green projects and some spillover projects that will create 956 thousand new green jobs. 2009 budget (including tax benefits) is approximately 2.6% of the annual GDP. The budget is already being implemented and proposed additional budget request will take the total number much higher.

In order to oversee all Green Growth initiatives and provide strong momentum, the Presidential Committee on Green Growth was established on 16 February 2009. The Committee (co-chaired by the Prime Minister and a distinguished professor Kim Hyung Gook) consists of 47 members including relevant ministers and distinguished experts and stakeholders from the private sector. The Committee is formulating the National Strategy on Green Growth and a five-year ‘Action Plan’ for its implementation in the first half of 2009. The Committee will also develop a new form of governance for Green Growth that will bring together all stakeholders from national & local governments and private sectors. “Chief Green Officers (CGOs)” will be appointed in all public institutions to promote Green Growth in all public policies. Furthermore, the government has proposed a new Framework Law on Green Growth. If enacted, it will be a comprehensive law that will encompass all related issues on energy, climate change and sustainable development.

Global Leadership on Combating Climate Change At the G8 Summit in Toyako 2008, President Lee Myung-bak made several key initiatives. He declared Korea will be an ‘early mover’ in addressing climate change and announced its plan to set a 2020 mid-term mitigation target for Korea. Korea is undergoing a study on its mitigation capabilities and will soon announce its target after a national consultation based on the study result. When announced, Korea will probably be the first non-Annex I country of the UNFCCC to set its voluntary mid-term target.

9 Key projects include ① revitalization of 4 major rivers, ② building green transportation, ③ building database on national territory and resources, ④ water resource management, ⑤ green car and cleaner energy program, ⑥ resource recycling program, ⑦ forest management & biomass program, ⑧ green home, office and schools, ⑨ greener landscape and infrastructure.

Comprehensive R&D Plan on Green Technology Endorsed by the National Committee on Science & Technology announced on 13 January 2009, the Plan calls for a two-fold increase of R&D spending on Green Technology by 2012 (769 million USD in 2008) on 27 key technology areas such as climate change prediction & modeling, photovoltaic solar panel, LED, waste regeneration, carbon capture and storage, etc.

Daegwalleong Wind Power Plant Complex , built in 2006, reduces 150,000 tons of carbon dioxide annually. Cover page picture was also taken at this site.

President Lee also launched the “East Asia Climate Partnership” at Toyako. This is a 200 million USD development assistance initiative (2008~2012) for developing countries in East Asia, least developed countries (LDCs) and small island states (SIDs), who are most affected by the adverse impacts of climate change. In 2008, 17 projects were selected as Partnership projects in 7 partner countries and in collaboration with 4 United Nations organizations.

‘Green Growth as a Civil Movement’ Miraculous economic growth in Korea can be accredited to the ‘Saemaul’ Movement which was launched in 1970s. Encouraging active public participation for community development with the catchphrase “Wealthy community for all” was a tremendous success. The Green Growth Civil Movement will inherit its spirit and experience to create a “Greener community for all.” Proactive local participation for creating green communities will be promoted through projects such as the ‘2 Million Green Homes’, ‘Greener Town & Rivers’, Solar Cities, etc.

President Lee Myung-bak commutes to office on a bicycle

“When it comes to climate change and energy issues, however, I want to make Korea an early mover." President Lee at G8 Extended Meeting in Toyako, Japan 2008

Bike paths around the nation

Green Industries

Enhanced Quality of Life

Global Leadership A nationwide network of bicycle belts connecting major cities and rivers.

Key Indicators

2007

2012

Share of Renewable Energy

2.24%(’06)

> 11% (’30)

Solar Power (global market share)

0.3%

5%

Green car related jobs (thousand workers)

260

300

Green Homes (households) Share of LED

14,500 < 1%

> 100,000 30%(’15)

Share of nuclear energy (in terms of capacity)

26%

41% (’30)

Fuel economy for vehicles (<1,600cc)

12.4km/

14.45km/

Co-generation Facilities Energy efficiency certification for buildings

47 public buildings

78 all buildings

Hybrid vehicles

1,386

30,000

Waste regeneration (%)

1.8%

31%

Expansion of carbon sinks

625 million m2

779 million m2

Public participation on climate action

23.6%

60%

Greenhouse Gas Emission (ton CO2e)

591.1

decided in 2009 (for ’20 target)

Climate change plans by local governments (% of local governments)

< 10%

100%

Share of ODA on Green Growth

11%

18%

The Cheonggye Stream was revived during President Lee’s office as the mayor of Seoul. Once buried under concrete pavements, this stream was transformed to a naturaland cultural center of the city, setting a new model for urban waterways.