0. Climate Change and Green Growth

1. 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

2. 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>

3. 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

4. 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

5. 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

6. Paradigm Shift from High to Low Carbon Paradigm

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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)

13. 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

14. 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

15. 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

16. 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

18. Thank you