Seoul, Republic of Korea Korea Institute of Energy Research Integration of Identified Technology Needs with the Current Development Programs UNFCCC/UNDP Expert Meeting on Methodologies for Technology Needs Assessments Seoul, Republic of Korea April 23-25, 2002 Dr. Sung-Chul Shin Korea Institute of Energy Research

“Energy-Related GHG Emission is dominant (85%) in Korea “Energy-Related GHG Emission is dominant (85%) in Korea. Energy is the solution as well as the cause in Global Warming Challenge.” Contents I. Energy Situation & Energy Policy in Korea II. Main Implementing Programs (RD³) III. International Collaboration R&D IV. Lessons on "Technology Transfer“ V. Conclusion & Suggestions

I. Energy Situation & Energy Policy in Korea  Large Energy Demand (10th in the World, GHG 11th)  High Import Dependence (97%): Petroleum(6th), Coal(2nd) 3 Key Energy Policy  Security (Diversification, Strategic Oil-Stockpile, Overseas Development)  Environment Protection (GHG, Toxic Pollutants, etc)  Efficiency Enhancement (Restructuring toward Less Energy-Intensive Economy) "Technology" is a Vital Factor in Policy Implementation.

II. Main Implementing Programs (RD³) RESEARCH INSTITUTE UNIVERSITY INDUSTRY DEPLOYMENT ”ESCO” “Minimum Standard Regulation” “VA” “GEF” DEVELOPMENT R&D* DEMONSTRATION ETDP** * R&D: Long-Term Energy Technology R&D Plan **ETDP : Energy Technology Demonstration Program

"Long-Term Energy Technology R&D Plan"(1997~2006) Based on “Energy-Use Rationalization Law”, the Plan was established by the Government (MOCIE) in 1997. Scope:  Efficiency/Conservation Technology  New & Renewable Energy Technology  Clean Energy Technology Target:  To reduce 10% of Final Energy Consumption (BAU) by Efficiency Improvement by 2006.  To supply 3% of Primary Energy Demand by Alternative Energy Sources by 2006. Budget (2000): 77,794 Million Won (Government 70%, Private 30%)

Budget on Energy R&D in Korea O Increasing budget since 1998 (IMF)

The process to identify the technology needs and to integrate them with R&D Programs was set up. ETDP was introduced to facilitate "Technology Transfer" from the Research Institutes to the Industry. (Total 29 ETDP projects undertaken as of 2001) Selection & Solicitation Evaluation & Award(expert pool) R & D Financial Support Performance & Post Management Survey(Internet) (Researcher, University Industries) (Around 150 R&D Projects awarded annually) (ETDP selection, Patent, Royalty)

III. International Collaboration R&D Besides the domestic R&D, International Collaboration R&D (Bilateral, Multi-lateral) has been encouraged to gain the identified technology needs.  Multi-lateral Cooperation: - APEC (5 E/G) - IEA(11 Implementing Agreements)  Bilateral Collaboration R&D : - KIER : * 13 projects with U.S., Japan, China, Canada, Russia, India, etc. * Memoranda Of Understanding with 38 Institutes in 16 countries.

Korea Institute of Energy Research Established in 1977 Manpower : 500 (Ph.D. 138) Budget : US$ 50 Million (2001) Major R&D Areas  Energy System Technology  Advanced Energy Materials and Application Technology  Clean Energy Technology  New and Renewable Energy Technology  Energy Technology Transfer

IV. Lessons on"Technology Transfer” Experience so far indicates that the bottlenecks/barriers to the following should be cleared to bring out satisfactory outcomes.  How to compensate? (Knowledge is asset)  How to match mutually beneficial and affordable technology?  How to build-up the capability? (Know-How/Why)  How to secure confidence? (Risk of New Tech).  How to provide financial assistance? (Investment Decision)

V. Conclusion and Suggestions Unlike CDM, TT is intangible, with no credit or incentives provided within the context of Convention.  In so far as Technology is an asset, TT is business.  Voluntary TT can not be expected. ☞ Systematic/Mandatory Approaches are required to facilitate TT. Establishment or Designation of "EST Technology Transfer Education Centers" will be very effective for capability build-up. Decision needs to urge Donors (Annex I Parties) to submit the list of "public" EST and the terms/conditions of its transfer. ☞ Needs assessment should be compatible with the provider’s availability.

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