Challenges of Climate Change

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2 Challenges of Climate Change 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 NSIDC September , 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 cm for the next 40 years 1

3 Environmental Crisis due to Global Warming In 2020s : increase of 1, in 2050s : increase of 2~3, in 2080s : increase of Water Resources 400 mil.~1.7 bil.to suffer from water shortage bil. ~ 2 bil. to suffer from water shortage `1 bil. ~ 3.2 bil. to suffer from water shortage Increase of Sea Level Eco System Rising intensity of flooding and heavy rain Amphibian extinction, coral reef ecosystems damaged, biodiversity crisis 3 mil. at maximum to suffer from flooding Most of coral reef face extinction mil. at maximum to suffer from flooding Most of living organisms on earth to face extinction 20~30% of living organisms face extinction <Source : IPCC> 2

4 Increase in climate crisis, Increase in triopical nights No. of tropical nights in major cities in August Annual financial damage due to climate change (Unit : Day) [Unit: Trillion Won] 2.6? 26 4 Times Increase Seoul Kangneung Daegu Jeonju Seoguipo 1970 s 1980 s 1990 s 2000 s Future Before 2000 After

5 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

6 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. Last 60 years Economic growth Next 60 years Green growth

7 Paradigm Shift from High to Low Carbon Paradigm 6

8 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 7

9 Pillars for Green Growth & Roles of Government Policy Signals Roles of Gov. Leadership Triple Pillars Regulations & Incentives Roles of Gov. Creation of Initial Market Technology People (Attitude) Internalize External Diseconomy Education & Persuasion 8

10 Features of GREEN GROWTH in Korea Strong Leadership Presidential Committee on Green Growth Fast Integration of the Vision in All Sectors Meaningful partnership with private council (business, financial sector, technology experts, local governments, social groups, etc.) Competitive Industrial Base in Relevant Ar eas Large competent players Action - Oriented Strategy Action - oriented Strategy Secure green budget: 2% of GDP Specific guidelines and implementation plans 9

11 Green Actions 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 1. Legal Framework Legislation of the Framework Act on Low Carbon, Green Growth Sustained Drive Key role for the Presidential Committee on Green Growth 5. Green Technology Development Core of Green Growth 10

12 National Strategy for Green Growth Key Framework Vision A Model Green Nation - through creating virtuous harmony of environment & economy Objectives Low Carbon Society & Energy Security New Engine for Growth Enhanced Quality of Life & Int l Leadership 10 Key Agenda 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

13 10 Core Green Technologies as New Growth Engine Rechargeable battery Strengthen R&D Strengthen mid-term & long-term competitiveness Core Green Tech. as new growth engine CCS CCS Master Action Plan Dramatic decrease in GHG reduction cost Nuclear Power Development Environment-friendly Technology development Competitive Nuclear Power Advanced Water Treatment Develop advanced water supply Management, tech. of sewage, waste water reuse Smart Grid Development of Water Treatment Industry Smart grid test-bed in Jeju, Special Law legislation 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) 12

14 Green Lifestyle based on Me First Spirit Public campaign Green Start Network, Green Energy Family, 1 ton of CO2 Reduction per 1 household, and etc. Incentives for GHG reduction 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 Carbon emission labeling system -Indicate CO2 emissions generated during production and distribution Food Waste Volume-rate garbage disposal system Efficient food waste management 13

15 International Cooperation on Green Growth East Asia Climate Partnership Strengthen Research in Green Growth International Negotiation Water Management Landmark project - Providing Total Solution for water Problems in developing countries Second East Asia Climate Forum Global Green Growth Institute(GGGI) - To assist countries in formulating Their own green growth plans Cooperation with OECD - Joint research on development of green growth strategies for OECD Post-Copenhagen Climate Change Negotiation -Secure Autonomy in climate change policy Bridge between developed/ Developing Countries - Continue efforts to reflect Nationally Appropriate Mitigation Action(NAMA) registry on future climate change regime 14

16 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 15

17 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

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