1. Green Growth Policy-Korean Experience
Y.O. Ahn Ph.D.
July,2014

2. UNFCCC
UN Framework Convention on Climate Change (194 Parties in 2011).
Earth Summit in Rio de Janeiro( 1992).
Conference of Parties (COP) meetings.1995.
Kyoto Protocol concluded
COP meetings. Copenhagen(2009)-Doha, Qatar (March,2012).
Annex I: Industrialized countries.
Annex II: Developed countries-pay for cost of developing countries. OECD.
Non-Annex countries: Developing countries.
U.S. and UK are both Annex I and Annex II.
Korea and Thailand: not in Annex I and II.

3. Kyoto Protocol 6-8% reduction of GHG below 1990 level by 2008-12.
President Clinton signed and President Bush rejected in 2001.
2009 COP15 at Copenhagen. President Obama and other leaders agree to put-off binding decision.
25 Parties including U.S. and China agrees on political accord only, but agree to spend $30 billion for

4. Carbon Emission
Emission will grow 25% in (OECD countries 5%)
Must reduce carbon intensity by 30% each year by 2020.
Target Management System. 500 companies which are 60%. POSCO alone 10%
2%/yr through process improvements.
Carbon Emission Trading System. Law proclaimed Operation 2015.

5. Korean Policy
Korea is non-Annex I Party. Not required to take on emission reduction.
National strategy for Green Growth. $83.6 billion for %of GDP.
Stimulus package $38.1 billion in 2009.
4 Major River Restoration Project $17.3 billion. Flood control, water quality, eco systems.

6. Emission Trading Scheme
EU ETS is model. 11,000 energy and industrial installations.
Cap and Trade: Cap is set and firms receive emission allowances. Within that cap one can buy or sell emission quota.
Opposition by Korea Chamber of Commerce.
Forecast $ 5 billion cost on industry.
Public hearing. August, 2012.
Administrative Regulations becomes effective: November, 2012.

7. ETS Status-1 Practiced by EU since 2005.
Australia and New Zealand in2008. USA (State of California) are practicing this emission rights trading system.
In USA, State of California and 9 States in the East
In China, only in Beizing and Shanghai Area.
In Japan, only 3 Prefectures near Tokyo.
Korea will start in 2015.
Emission right price plummets from $30/Ton (2008) to $2/Ton(2012) in EU because of recession..

8. ETS Status- Korean Plan
Establish reduction goal (January, 2014) 670 MM ton in and 813 MM ton in 2020
Allocate permissible emission quantities to each industrial Sectors by June, 2014.
Select industrial companies required to reduce emissions by July, 2014.
Allocate emission quota to each industrial entity.
Industry estimate the extra burden to be about $ 28 billion based on W100,000 per ton.
Government estimate is a maximum of $2.7 billion.
If the Power Generation Industry must bear $4.3 billion, this will cause the electricity price by 8%.

9. GHG Reduction Objectives

10. Korean Initiatives
Championed “National Appropriate Mitigation Action” registry for financial support from advanced nations.
ETS can be incentive for green industry technology developments.
Korea takes action unilaterally.
Helped in bringing Green Climate Fund head office to Korea. 2012

11. Green Climate Fund (GCF)
Launched at COP 17 (Durban) 2011with 24 Board Members. World Bank as Trustee.
Support programs/ policies using thematic funding windows.
Fast Start Funding pledged to spend $30billion in $10 billion paid so far.
$100 billion by 2020 : International organization like IMF and World Bank.

12. Scale of GHG Emissions
China %
USA %
Korea %

13. GHG Emission in 2012
35.6 billion ton carbon dioxide equiv. which is 2.6% increase.
China, USA,EU, India : 62% of emission.
Korea 0.6 billion ton : 4% increase and 8th in the world.
Belgium, Denmark, France, Sweden, UK : 5% decrease in emission.
EU Total : 2.8% decrease.

14. GHG Reduction in 2013
480 Companies including POSCO, Ssangyong Cement, SK Energy, LG Display, Samsung Electronics must reduce 3.02% of million Ton CO2.
Top 10 companies must reduce 5.1 million Ton which is 35% of Total.
2010 Law: Mandatory reporting of carbon emission.
Reduction of 17.8 million Ton is equivalent to $10 billion or 4 nuclear power plants.

15. Energy Efficiency
Energy intensive industries (Shipbuilding, Steel) accounts for 27.9% of GDP.
Spent $140 billion on import of engery.1/3 of revenue of $400 billion from export.
5th largest importer of oil (2007).
2nd largest importer of coal and LNG (2008)
Renewable Energy 2.7%(2009) 11%(2030)
Further development of nuclear energy. 2009(24%) 2013 (27%) (32%).UNEP recommends study of safety and stability.

16. Allocation of Green Stimulus Fund
Total of $30.7 billion allocated for
Renewable energy ($1.8 billion)
Energy efficient buildings ($6.2 billion)
Carbon vehicles ($1.8 billion)
Railways ($7.1 billion)
Water and waste management ($13.9 billion)

17. Jeju Smart Grid Pilot Project
$200 million project for
168 companies forming 12 consortium.
Smart Transportation
Smart Renewable
Smart Power Grid
Smart Electricity Service
Utilization of Energy Storage System (ESS)
Use of LiFePO4 batteries for ESS (LG Chem)
Renewable Energy (KEPCO, Hyundai Heavy, POSCO)
Power Grid (KEPCO)
Transportation (KEPCO, SK Energy, GS Caltex)
Consumer (SK Telecom, KT, LG Electronics)

18. Primary Energy Supply in Korea
Want to increase the renewable to 6% by 2020

19. 27 Green Growth Technologies
Secondary batteries
LED lighting systems
Silicone based solar cells
High efficiency fuel cells
Smart IT meters (advanced metering)
Power generation: IGCC
Next generation fast reactor and fusion technology
Advanced water treatment

20. Thank You.