Policies and Measures to Address Climate Change in Korea Shin Boo-nam Deputy Director-General MOFAT, KOREA Shin Boo-nam Deputy Director-General MOFAT, KOREA

1 ContentsContents I.Korea’s Unique Energy Situation II.Government Response to Climate Change Mitigation II-1Energy Conservation Measures II-2Energy Supply Measures III.Energy Demand and GHG Projection to 2020 IV.The Way Forward

2 I. Korea’s Unique Energy Situation four-decades-long transformation from predominant agricultural economy into export-oriented industrial economy energy sector responsible for more than 80% of the GHG emissions 10-fold increase in Korea’s primary energy consumption during the last three decades, reaching 215 million TOE in 2003 total gross emissions of GHG : million TCE in 2002

3 Established Inter-Ministerial Committee on the Framework Convention on Climate Change (1998) Chaired by the Prime Minister Comprised of competent Ministries, national research institutions, and industries Adopted ‘The Third Comprehensive National Action Plan for the Framework Convention on Climate Change’ (effective from 2005 to 2007) Financial funds amounting to 20 billion dollars, including 8 billion dollars from private sector, being earmarked for the Plan II. Government Response to Climate Change Mitigation

4 II-1. Energy Conservation Measures Voluntary Agreement Participation of more than 1,000 factories, with 58% of industrial energy use in 2003 Demand Side Management (DSM) Program Promotes efficient utilization of energy through a rebate system for high-efficient electricity appliances Fuel-efficiency Rating and Labeling Program Encourages car manufacturers to produce more fuel- efficient vehicles

5 Promotion of Mass Transit System Integration of the subway and bus lines, along with expansion of bus-only lanes in metropolitan areas proved quite successful Energy Efficiency Rating and Labeling Programs Adopted for various household appliances (eg. refrigerators, air conditioners, clothes washers, incandescent bulbs, fluorescent lamps)

6 II-2. Energy Supply Measures Power Sector Measure Expansion of nuclear and natural gas in the power sector regarded as important option in Korea Promotion of Combined Heat and Power (CHP) Provides heat and power to more than 500 factories in 21 industrial complexes over the country Low Carbon Energy System: the role of renewable Target being set to raise the share of new and renewable energy in total primary energy consumption to 5% by 2011 from current 2.3%

7 III. Energy Demand and GHG Projection to 2020 Korea’s energy demand and resultant CO 2 emissions projected to increase through 2020 Total primary energy demand and the resultant carbon dioxide emissions projected to increase at an average annual increase of 2.8 percent and 2.3 percent respectively between 2002 and 2020 Table 1 - Indicators on Primary Energy Consumption and CO 2 Emissions from Energy Sector ’02 - ’20 Primary energy (million TOE) % Per Capita energy use (TOE/Person) % CO 2 Emissions (Mil TC) % Per Capita CO 2 (TC) %

8 Main drivers behind increasing energy demand and resultant CO 2 emissions GDP growth increasing ownership of vehicle and household appliances growing number of household ☞ However, the demand for primary energy expected to grow more slowly than GDP through 2020, due to notable factors such as downward trend of energy-intensive manufacturing

9 IV. The Way Forward Korea projected to witness growing energy demand in the coming decades. World’s toughest challenge : meeting the future energy demand and reducing GHG emissions while not impeding economic development Development of more efficient technology emerging as a long-term viable option for meeting the world’s challenge. Annex I parties have significant role by spearheading technological assistance In accordance with the principle of CBDR and the specific circumstances of each country as stipulated in UNFCCC

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