Climate Change and Green Growth 2010. 10

Challenges of Climate Change Threats of climate change and destruction of eco-system (Global Weirding) Economic loss expected due to climate change : 5~20% of the world’s annual GDP(2006, Stern Review) Deficiency in energy, natural resources and price increases Economic development of developing countries Continued increase of world population 2003 1979 NSIDC September 2060, 2030(?) Highest temperature of the North Pole in summer ? ※ Scientific facts of global warming Prior to industrialization in 1750s, atmospheric concentration of CO2 was 280ppm → 384ppm in 2007(annual increase of 2ppm), an average surface temperature increase of about 0.74℃ over the last 100 years → If the above trend contiues, CO2 level wll increase by 550ppm, and surface temperature will increase by 3℃ within 2050 (Stern Review) Korea 1.7℃↑, Sea Level of Jeju Island will 22㎝↑for the next 40 years 1 1

Environmental Crisis due to Global Warming In 2020s : increase of 1 ℃, in 2050s : increase of 2~3 ℃, in 2080s : increase of 3℃ Water Resources Increase of Sea Level Eco System 0℃ 1℃ 2℃ 3℃ 4℃ 5℃ 1 bil. ~ 2 bil. to suffer from water shortage 1.`1 bil. ~ 3.2 bil. to suffer from water shortage 400 mil.~1.7 bil.to suffer from water shortage Rising intensity of flooding and heavy rain 15 mil. at maximum to suffer from flooding 3 mil. at maximum to suffer from flooding 20~30% of living organisms face extinction Most of coral reef face extinction Most of living organisms on earth to face extinction Amphibian extinction, coral reef ecosystems damaged, biodiversity crisis 1.5℃ 3.8℃ 1.8℃ 3.0℃ 1.0℃ 2.5℃ 3.5℃ <Source : IPCC>

Increase in climate crisis, Increase in triopical nights (Unit : Day) Seoul Daegu Seoguipo Kangneung Jeonju 3.2 4.2 8 2.8 11 5.4 16 7 26 17.4 10.8 Before 2000 After 2000 2006 No. of tropical nights in major cities in August 2000’s 1970’s 1980’s 1990’s Future 2.6 0.7 0.5 0.2 ? [Unit: Trillion Won] 약 4배 증가 Annual financial damage due to climate change 4 Times Increase

Average temperature rise 1.7℃ (2 times more than world average) Why Green Growth in Korea? Increasing Energy Vulnerability Top 10 energy consumer with 140 Billion USD in energy bill Trade deficit: 97% of the energy is imported Dependence on fossil fuels: 83% of the energy is from fossil fuels Triple Crunch: energy crisis did not come alone Energy Challenge Climate Challenge Economic slow Down A New Path is needed! $140 Billion Energy bill Average temperature rise 1.7℃ (2 times more than world average) Declining growth rates since the late 1990s & Growth without employment

Presidential VISION – Low Carbon, GREEN GROWTH “Today, on the occasion of the 60th anniversary of the founding of the Republic of Korea, I want to put forward ‘Low Carbon, GREEN GROWTH’ as the core of the Republic’s new vision.” Next 60 years Green growth Last 60 years Economic growth

Paradigm Shift from High to Low Carbon Paradigm

Low Carbon Paradigm * Economic Growth without increase of GHG Emissions : Decoupling Concept  High Energy Efficiency  Saving Energy Costs  Energy Security against High Oil Price  Improve Industrial Performance  Sustain Economic Growth  Low Fossil Fuel Dependency  Reducing GHG Emissions Reducing vulnerability to Climate Change  Improving Ecological Sustainability  Economic Growth + Ecological Sustainability  Green Growth  Turn Vicious Cycle to Virtuous Cycle

Pillars for Green Growth & Roles of Government Leadership Technology Triple Pillars People (Attitude) Policy Signals Creation of Initial Market Education & Persuasion Internalize External Diseconomy Regulations & Incentives Roles of Gov. Roles of Gov.

Features of GREEN GROWTH in Korea Presidential Committee on Green Growth Strong Leadership Meaningful partnership with private council (business, financial sector, technology experts, local governments, social groups, etc.) Fast Integration of the Vision in All Sectors Large competent players Competitive Industrial Base in Relevant Areas Secure green budget: 2% of GDP Specific guidelines and implementation plans Action - Oriented Strategy Action - oriented Strategy

Green Actions 3. National GHG Reduction Goal 2. Strategy & Plan Sustained Drive Key role for the Presidential Committee on Green Growth 1. Legal Framework Legislation of the Framework Act on Low Carbon, Green Growth 2. Strategy & Plan Inherits the spirit of the “Economic Development Plan” in the 60~80s 3. National GHG Reduction Goal 30% reduction from BAU 4. Green Budget 2% of GDP on Green Growth policies 5. Green Technology Development “Core” of Green Growth

National Strategy for Green Growth Key Framework A Model Green Nation - through creating virtuous harmony of environment & economy Vision Objectives 10 Key Agenda Low Carbon Society & Energy Security New Engine for Growth Enhanced Quality of Life & Int’l Leadership Build Low Carbon Society Greater Energy Security Addressing Climate Change R&D for Green Tech. Foster Green Industry Greening the Industry Lay the Foundation for Green Economy Green Transportation & Land Management Green Life-style Int’l Leadership 11

Nuclear Power Development 10 Core Green Technologies as New Growth Engine Core Green Tech. as new growth engine Nuclear Power Development Rechargeable battery Advanced Water Treatment Develop advanced water supply Management, tech. of sewage, waste water reuse Strengthen R&D Environment-friendly Technology development Strengthen mid-term & long-term competitiveness Competitive Nuclear Power Development of Water Treatment Industry CCS Smart Grid Smart grid test-bed in Jeju , Special Law legislation CCS Master Action Plan Dramatic decrease in GHG reduction cost Be an international leader through early commercialization Start-up companies with green tech. Form start-up investment fund (e.g. Green Start-up Fund)(100bn. won)(Jun.) Establish business incubator specializing in green industries, foster 1,000 green Tech. ventures by 2013 (200 by 2010)

Green Lifestyle based on “Me First” Spirit Public campaign Incentives for GHG reduction Green Start Network, Green Energy Family, 1 ton of CO2 Reduction per 1 household, and etc. Carbon cash-back system Carbon points awarded for purchase of low-carbon goods Carbon point system - Points awarded for saving energy Culture of green consumption Food Waste Carbon emission labeling system Volume-rate garbage disposal system Indicate CO2 emissions generated during production and distribution Efficient food waste management 13

Strengthen Research in Green Growth International Cooperation on Green Growth East Asia Climate Partnership Strengthen Research in Green Growth International Negotiation Water Management Landmark project Global Green Growth Institute(GGGI) Post-Copenhagen Climate Change Negotiation Providing Total Solution for water Problems in developing countries To assist countries in formulating Their own green growth plans -Secure Autonomy in climate change policy Bridge between developed/ Developing Countries Second East Asia Climate Forum Cooperation with OECD Joint research on development of green growth strategies for OECD Continue efforts to reflect Nationally Appropriate Mitigation Action(NAMA) registry on future climate change regime

Challenges Ahead Continued support from the public the key to success of Green Growth Support from business community meeting its needs to adapt & change setting a price on target : emission trading & carbon tax

Green Growth is Not a matter of choice but a must for Korea And we are already on the way Green Growth sector is a realm of imagination with endless possibilities The winner of the game will be an “Early & Smart Mover” 16 16

Thank you