Low-carbon-green-cities in Korea and the Seoul metropolitan area: The roles of public corporations and environmental consulting firms.

Transcription

1 : The roles of public corporations and environmental consulting firms Lee, Jinhyung Ph.D. in Economic Geography Visiting Researcher, Institution for Korean Regional Studies, Seoul National University

2 Eco-City Eco-City Aims to reconcile economic development with the protection of social and environmental balance Emphasized especially since the 1992 Rio Earth Summit Promoting diversity, independence, stability and circulation of natural ecological system Sustainable City, Low-Carbon City, Resilient City, Smart City, Etc. ESSD(Environmentally Sound and Sustainable Development): Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (UNCED, 1987) Three dimensions - economic, social, and ecological sustainabilities should all be considered(park, 2002). Based on ecological modernization Place Marketing, City Branding: to sell the place image to tourists, residents, and firms with eco-images Urban Regeneration: new and fashionable goal, subsidies opportunities 2

3 Famous Eco Cities Curitiba(Brazil) Masdar(UAE) (Source: (Source: (Source: BEDZED(UK) Hammarby Sjöstad(Sweden) (Source: (Source: 3

4 Korean Low Carbon Green City Policy (1/2) Low Carbon Green City Basic spatial entities which improve the quality of urban life and lead to low carbon green growth by reducing greenhouse gases A city that pursues low carbon and green growth Low Carbon (Article 2, Clause 1 of the Framework Act on Low Carbon and Green Growth) Green Growth (Article 2, Clause 2 of the Framework Act on Low Carbon and Green Growth) Refers to lowering of greenhouse gases to an appropriate level through reduction of dependence on fossil fuels, expansion on use and supply of clean energy, research and development for green technology, and securement of carbon sinks Refers to a growth in which energy and resource are conserved or efficiently used to reduce climatic changes and environmental damages, new growth power is secured based on research and development of green technologies with clean energy, and economy and environment are harmonized by creation of new jobs Low carbon, green growth policies: 3 major promotion strategies and 10 policies Response to Climatic Changes and energy independence Creation of New Growth Power Efficient reduction of greenhouse gases Petroleum-free and independence Reinforced adoption to climatic changes Green technology development Nurturing green industry Advancement of industrial structure Creation of basis for green economy Improvement of life quality and improved national image Green land and Green transportation Green innovation in life Global green growth nation (Source: KECO/ 4

5 Korean Low Carbon Green City Policy (2/2) Low Carbon Green City Objectives and Practical Strategies Purpose of low carbon Green City Major practical strategies Low Carbon Green Independent Realization of low carbon green independent city Use of new-renewable energy Reduction of energy use Carbon reduction through green transportation Carbon reduction through business process improvements Expansion of carbon sinks, introduction of carbon disposing technologies and etc. Green Environment Preservation, restoration and creation of green urban environments Use of environment friendly low carbon lands Green transportation Expansion of greenbelt Circulation of resources Green construction Green scenery and etc. Green City Green Society Realization of community city led by the local society Local participation Activation of eco community Environmental education and explanations Regional willingness Green Economy Wise use of green resources Wise use of local resources Carbon marketing Bio-banking Ecology tour Ecology culture visiting route and etc. (Source: KECO/ 5

6 Low Carbon Green City Projects in Korea (1/3) Green City Selection System(2004~) A local government entity with excellence in environmental management basis and plans, designated by the Ministry of Environment upon voluntary application and fair process of deliberation or assessment, having a purpose of enhancing voluntary environmental management and induce environment friendly local administration Green City is granted an award, certificate of Green City selection and promotion through the media Living City(2009~) An urban policy that improves green environment and enhances local economy through integrated approach on 7 eco rich sectors like energy, transportation and industry (Source: KECO/ 6

7 Low Carbon Green City Projects in Korea (2/3) Low-Carbon Green Villages(2010~) Improvement of energy independence in agricultural villages and small cities 7 Model Villages: Ministry of environment(2), Ministry of Security and Public Administration(2), Ministry of Agriculture, Food and Rural Affairs(1), Korea Forest Service(2) Eco Energy Town(2014~) Making ICT based new-renewable energy facilities by using environmental basic facilities 3 model cities: Hongcheon(Sewage Treatment Plant/New-Renewable Energy), Jincheon(Biogas/New-Renewable Energy), Gwangju(Landfill) (Source: KECO/ 7

8 Low Carbon Green City Projects in Korea (3/3) Songdo (in Incheon Free Economic Zone) Automatic Collection of Everyday Waste(Reduced carbon emissions through reduced garbage truck use) Wastewater Facilities Installation(Reduced carbon emissions by reusing wastewater as city water)) Apartment House Green Home Project(Support for home installation cost of new-renewable energy systems) Approval of environmentally friendly construction materials Nurture green industry and promote green city establishment through Attraction of green industries Installation of LED crosswalk lights (Source: 8

9 Carbon Reduction Activities of Korea National Plans and Policy Measures The Low Carbon Green City - Response to climate change and energy independence - Creation of new growth power - Improvement of life quality and improved national image National Plans The 1 st UNFCCC Comprehensive Counterplan The 3 rd UNFCCC Comprehensive Counterplan The First Five-year Plan for Green Growth The Second Five-year Plan for Green Growth The 2 nd UNFCCC Comprehensive Counterplan The 4 th UNFCCC Comprehensive Counterplan GHG Reduction CDM(Clean Development Mechanism/UNFCCC) VA(voluntary agreement) GHG/Energy Target Management Scheme KVER(Korea Voluntary Emission Reduction) Korean ETS New/Renewable Energy FIT RPS ESCO Introduction of the ESCO Vitalization of the ESCO 9

10 Domestic Greenhouse Gas Reduction Institutions Public Companies and consultancies have done important roles in domestic GHG reduction institutions. ESCO(Energy Service Company) KVER(Korean Voluntary Emission Reduction Program) Energy users 1. Shared savings contract ESCOs 4. Requesting Loans 5. Loans 2. Requesting recommendations 3. Publishing recommendations KEMCO Designated Authority The Ministry of Trade, Industry and Energy (MOTIE) Accreditation Committee Financial institutions RPS(Renewable Portfolio Standard) 2. Confirm installation 5. Request REC Issuance KEMCO (RPS Dept.) 6. Issue REC (Source: KEMCO) 1. Impose RPS targets 9. Verify duty permformance GHG Verification Entity Requesting GHG reduction certification PDD Validation & monitoring report verification Submit application & Monitoring reports Korea GHG Reduction Regestry Center (KEMCO) Registration Applicant (Project Proponent) Support management For carbon credits Approval of registration and certification of projects Designation of Verification entity CHC Consulting Firms (if necessary) Consult project development and PDD Writtng (Source: KEMCO) Electricity Seller (KEPCO, KPX) 3. Sell electricity 4. Confirm generation Power Producer 7. Sell REC 8. Calculate REC Price Obligators (Source: KEMCO) Over 5,300 RPS new-renewable power plants has been established (KEMCO, 2014/08/07) 10

11 UNFCCC and CDM UNFCCC and Kyoto Protocol The first World Climate Conference IPCC's first Assessment Report released Kyoto Protocol Adopted (COP 3) IPCC's third Assessment Report released Entry into force of the Kyoto Protocol 1979 IPCC Set up 1990 UNFCCC Adoped Marrakesh Agreed on the Accords adopted Bali Road Map (COP 7) (COP 13) Kyoto Protocol System CDM ETS (Emission Trading Scheme) Reduction Credits CERs Project Offset Baseline Emissions Cap JI (Joint Implementation) CDM (Clean Development Mechanism) Annex I - Annex I Annex I - Non-Annex I Non-Annex I Country Investments Annex I Country 11

12 Characteristics of Korean CDM Activities CDM activities of Korea Rep. Started in 2004 (the early stages of CDM) Korea (2.5%) Etc. (9.0%) Korea (1.4%) Etc. (10.1%) The 4 th host-country (CERs) The 9 th host-country (No. of projects) Higher unilateral-cdm ratio Many new-renewable energy projects Brasil India (6.9%) China (69.4%) Brasil India (18.4%) China (52.9%) 100% 80% 60% 40% 13% 87% 69% Expected CERs of Host Projects PV Wind Hydroel gas SF6 (6.1%) (10.1%) HFC Landfill ectric Etc. (0.4%) Number of Host Projects Etc. HFC PV (22.8%) (29.3%) N2O 20% 0% Korea 한국 31% Total 평균 (11.6%) N2O (66.5%) SF6 (5.7%) Landfill gas (9.8%) Wind (13.0%) Hydroel ectric (13.8%) Unilateral CDM Ratio Expected CERs of Host Projects Number of Host Projects (Source: PDDs, IGES and UNEP Risø Center data, 2013/01) 12

13 The Structure of CDM Projects (1/2) Projects of Industrial firms Increasing the energy efficiency Reducing the greenhouse-gases in production processes The knowledge for GHG reduction is intangible and protected as a patent. Selling only CERs Consultancies have the more important roles Mainly supported by KEMCO(Korea Energy Management Corporation) (Chemical/Manufacturing Companies) PP(2) Investment PP(1) PP(1) Consulting Consultancies CERs H/O Response to DOEs Firms Owning Patents Technologies for GHGs reduction Suppliers CERs PP(1) Plants Verification & Validation DOEs Verification & Validation Support Public Corporations 13

14 The Structure of CDM Projects (2/2) New-Renewable Energy Projects Replacing the power plants with the new-renewable energy power plants The knowledge for GHG reduction is tangible as power generation facilities. Selling both electricity and CERs KEMCO(Korea Energy Management Corporation) supported power producer companies and public actors like KRCC(Korea Rural Community Corporation) and Korea Forest Service. KECO(Korea Environment Corporation) supported landfill companies and conducted program-cdm projects. Government Electric Power Corporation Subsidies Selling Electricity PP PP H/O Consulting Response to DOEs Consultancies Plant Construction Companies Suppliers EPC EPC CERs Verification & Validationc PP Power Plants DOEs Verification & Validation Support Public Corporations 14

15 Network of the Korean CDM Industry Consultancies Suppliers ANNEX I Country DOE Project Participant Firms Owning Patents Project Participant Head office Industry Site Site Project Participant Industry Non ANNEX I Country Government and Public Corporations Consultancies New-Renewable Energy Formal linkage Informal linkage Organizational linkage Head office DOE state-run Head office financial institution Site Site Project Participant Suppliers Plant Construction Company Republic of Korea (Non ANNEX I Country) New-Renewable Energy Project Participant Non ANNEX I Country Government 15

16 Spatial Structure of Korean CDM Projects Project Participants (PP) Number of PP Head Offices Number of Project Sites Seoul Metropolitan South East Region South East Region Gangwon/Middle Region Etc. 1 3 Total Consultancies 20 consulting firms involved in making PDDs 18 firms in the Seoul metropolitan area (Seoul 14/Gyeonggi 4) A firm outside the area has a branch office in Seoul DOEs All 13 DOEs are in the Seoul metropolitan area ( 기준 : 수 ) PP(Head Offices) PP(Sites) Consultancies DOEs (Source: PDDs, IGES and UNEP Risø Center data, 2013/01) 16

17 Knowledge Creation and Accumulation in SMA The Knowledge of GHG Reduction is created and accumulated in SMA by doing CDM projects. Korea, Rep. Seoul Metropolitan Area(SMA) spatial proximity social proximity Support Public Corporation Early Stage Annex I Countries PP H/O DOEs Verification & Validation Consulting Support Late Stage Annex I Countries Consultancy Actors Knowledge Suppliers Verification & Validation DOEs Knowledge Actors Project Experience PP Plant/ Power Plant Public Corporations Conducted knowledge sharing and human resources education searching outbound project opportunities (mostly with consultancies by outsourcing) even CDM projects (and program CDM projects) as project participants 17

18 Policies for Promoting New-Renewable Energy and CDM The policies for promoting new-renewable energy projects led CDM project market expansion. Suppliers of new & renewable energy facilities had been increased. The participation of firms and the local knowledge accumulation was accelerated. Government Promoting new & renewable energy projects (FIT/RPS) The Early Stage of Korean CDM industry The Introduction of the Knowledge from ANNEX I countries Public Corporations and Consultancies The Growth of Korean CDM industry The local Accumulation of the Knowledge The Late Stage of Korean CDM industry The Application of the knowledge to other Non- Annex I Countries Introduced the CDM institution Supported project participants 18

19 Public Corporations & Consultancies for Low Carbon Green City Central Government Promoting Projects for Low Carbon Green Cities Making the GHG Reduction Industry Market Public Companies and consultancies are doing important roles to make Low Carbon Green Cities especially in the early stage They are diffusing the GHG reduction knowledge accumulated from the former institutions. Korean Low Carbon Green Cities (Local Governments) Conducting GHG Reduction Projects New & Renewable Energy Green Transportation Green Industry Process Low Carbon Recycled Resource Green Construction Carbon Sinks Central Government (Nationwide) Local Governments Competitiveness of GHG Reduction Industries Subsidies for Urban Regeneration Green Eco City Brand, City Marketing Private Actors Public Corporations and Consultancies Experience and Knowledge from Domestic GHG Reduction institutions and CDM Public Corporations Consultancies (Former) Project Participants (Former) Suppliers Knowledge diffusion from SMA to Korean Low Carbon Green Cities 19

20 Conclusions The model for the Eco City in Korea is the Low Carbon Green City from the Low Carbon Green Growth Agenda. The goal and measures of the Korean Low Carbon Green City policies are mainly focused in GHG reduction. Korea has accumulated the GHG reduction capability from conduction of domestic GHG reduction institutions and (unilateral) CDM GHG reduction project participant firms, consultancies, suppliers, and public corporations has accumulated the knowledge for the GHG reduction activities based on the spatial / social proximity in Seoul Metropolitan Area. The new-renewable energy promotion policies of the Government led the expansion of the GHG reduction project market and reinforced the knowledge accumulation processes. The industrial competitiveness of industries in the low carbon fields would be improved by the Low Carbon Green City policies which promotes low carbon(ghg reduction) project activities. Local Governments also could conduct the urban regeneration with the Low Carbon Green City subsidies of the central government. But social/ecological sustainabilities and the differentiated place image also have to be considered more. 20