1. CDM implementation in Korea Gyungae Ha Center for Climate Change Mitigation Projects Korea Energy Management Corporation October 19-21 2005, AIT, Thailand

2. Contents  Current status  DNA in Korea  Approval Criteria  Approved projects  Lessons learned

3. Current status  Republic of Korea signed the convention in December 1993 and the Kyoto protocol in November 2002  The government approves two CDM projects by October 2005  HFC decomposition project in Ulsan (MOCIE, MOE) & N2O emission reduction in Onsan (MOCIE, MOE)  Currently, the government is reviewing a wind power project  Another two projects(wind power & tidal power) are in the validation stage

4. Structure of DNA Inter-Ministerial Committee on UNFCCC Chair: Prime Minister Member: related Ministry and government agency Vice-ministerial Committee on UNFCCC Chair: Deputy minister of government policy coordination Member: related Ministry and government agency Working group of director-generals on UNFCCC Chair: economic policy coordinator of the office for government policy coordination Member: office of government policy coordination, MOFAT, MOST, MAF, MOCIE, MOE, MOMAF and other related ministries and offices Working group of CDM Review Committee Member: related Ministry and government agency CDM Review Committee MOFAT: Ministry of Foreign affair and Trade MOST: Ministry of Science and Technology MAF: Ministry of Agriculture and Forestry MOCIE: Ministry of Commerce, Industry and Energy MOE: Ministry of Environment MOMAF: Ministry of Maritime Affair and Fisheries

5.  To apply for the approval of a CDM Project, a project developer shall submit the following documents to the Industrial Policy Coordination and Energy Division in the Office of Government Policy Coordination  Application form  CDM PDD  Approval letter from Annex I or Validation report  Document which certifies Annex I investment(if applicable)  Approval letter from the Executive Board on baseline and monitoring methodologies (if applicable)  Environmental Impact Assessment report (if applicable) Required Documents for the approval

6. Procedure for CDM approval in Korea Project participants CDM Review Committee Responsible Ministry or Ministries Submit application documents for approval letter Circulate the application do cuments within the commit tee and appoint a ministry or ministries for reviewing q proposed CDM project through the consultation of related ministries Responsible ministry or ministries submit(s) the review document to the committee and ask(s) the office of government policy coordination to held a meeting of the committee for final decision Issues an approval letter based on the result of the final meeting of the committee

7. Approval criteria  A CDM project shall contribute to national sustainable development;  Emission reductions attributable to a CDM project shall be additional to any that would occur in the absence of the proposed project;  A CDM project shall assess its impact on environment, transportation and disasters if applicable;  Environmentally sound technologies and know-how shall be transferred;  A CDM project shall comply with relevant policies and regulatory regimes.

8. Priority areas in a revised procedures  Energy Efficiency improvement  Renewable energy  Renewable energy potential in Korea  Methane recovery and utilization in landfills SourcePotentialRemarks PV38 TWh-including 10% of available installation area Wind93 TWh- 20% of technical potential Small Hydro3.9 TWh- Geothermaln.a.- Biomass2.3 mil.TOE/year- mainly for thermal usage

9. Approved projects

10. HFC decomposition project in Ulsan  The project is in the Ulsan plant which produces HCFC 22 and HFC 23 as an inevitable by-product of the HCFC 22. This project installs HFC 23 collection and decomposition process equipment. The project will reduce 1.4million CO 2 ton per year  Main ministries : MOCIE & MOE  Supporting bodies: KEMCO for MOCIE & EMC for MOE  The project has been approved by the committee as the first CDM project in Korea.

11. N 2 O emission reduction in Onsan  The project is in Rhodia plant at Onsan which produce adipic acid(C6H10O4), main constituent of nylon. The project will install a facility to convert the nitrous oxide from adipic acid unit into nitrogen based on the process of thermal decomposition. The project will reduce 9.15million CO 2 ton per year  Main ministries : MOCIE & MOE  Supporting bodies: KEMCO for MOCIE & EMC for MOE  KEMCO held a expert meeting for reviewing the project.

12. Lessons learned  Difficulties in applying the concept of its contribution to the SD into the reviewing process  Different perspective of the concept of SD according to a ministry  Problems with monitoring to ensure that approved CDM projects continue to meet established sustainable development criteria and technology transfer issues

13. Lessons learned  Need for measures to promote energy efficiency improvement projects and new & renewable energy projects Note) 1000won = 1US$  Building a network of CDM DNAs for sharing their experience, criteria and procedure (ex. in UNFCCC website) CO 2 reductions (CO 2 ton) Reduction costs (won/CO 2 ton) Waste heat recovery128,30522,623 Energy efficiency improvement851,893109,520 Fuel switching77,6605,241 PFC reduction5,785,225331 LFG recovery754,19062,865 New & renewable energy198,3801,034,157 TOTAL7,820,353178,415

14. Thank you Any comments and questions are welcomed to: hga@kemco.or.kr