외교부

Korea’s Policies on Green Growth: Building a Planet-responsible Civilization

Presentation
by
H.E. Min Dong-seok,
Vice Minister of the Ministry of Foreign Affairs and Trade
of the Republic of Korea
on the occasion of
the UN Academic Impact Forum
in Seoul, August 10th 2011
 

Ⅰ. Introdution

At the outset, I would like to express my appreciation to the Korean Council for University Education for taking the initiative to host this important forum for the United Nations (UN) and the World Academic Community.    

My thanks also go to UN Secretary-General Ban Ki-moon for participating in this Forum. I would like to take this opportunity to offer my congratulations on his historic reelection and also to convey my most sincere wishes for him to build on his many achievements from the last five years with even more success in his second term as UN Secretary-General.

Under his leadership, the UN has employed more action-oriented approaches in the fields of security, development, and human rights. He has offered strong support in particular to promoting cooperation amongst the global community under the banner of a ‘new multilateralism’, and contributed to the forging of the Copenhagen Accord, laying a stepping stone for progress in the UN climate change negotiations in 2009. 

Indeed, Secretary-General Ban Ki-moon has identified climate change as ‘the defining challenge of our era.’ Climate change affects everything from the health of the world economy to the health of our citizens, from energy security to international security. Climate change is a global challenge that requires a global response.

Secretary-General Ban Ki-moon has ranked climate change as a top priority alongside eight other important issues such as disarmament, combating the financial crisis and poverty, global health, peace and security, and so on. The green economy and its ability to tackle climate change will also be at the top of the agenda for the UN Conference on Sustainable Development (Rio+20) in 2012.

It may be beneficial to take a step back and pose an important preliminary question in this regard: what is green growth and why should we place so much emphasis on it?

Green growth represents a historical change in the way we will structure our lives in the future, one that has parallels with other technological innovations in the past. The famous archaeologist Gordon Childe once described the Neolithic Revolution as "a radical change fraught with revolutionary consequences for the whole species."

One part of humankind ultimately turned its back on foraging and embraced agriculture to lead to the Neolithic Revolution forward. This collectively transformed humankind and enabled us to evolve into a totally different era that would have been simply inconceivable to those who lived before it.

Today, some of us are eager to embrace green growth with a view towards building a planet-responsible civilization.

In the face of such a formidable and comprehensible challenge as climate change, Korea, alongside other like-minded countries and international organizations such as the UN, is ready to embrace the new path of green growth and would like to prove that green growth is possible.
   
In this regard, I am indeed delighted to take this opportunity to share my views about "Korea's policies on green growth: building a planet-responsible civilization." I would like to offer some reflections on Korean green growth policies from both a domestic and international perspective, as well as discuss this potentially-world changing new energy policy-mix as an instrument of green growth.

Ⅱ. Korea’s Green Growth Policy

Background for Adopting Green Growth and Efforts to Implement it Nationally

Since the early 1990s, Korea’s old development paradigm which sought unlimited expansion of the economy through industrialization, making ample use of fossil fuels, has been showing rapidly diminishing returns in terms of economic growth and job creation.

President Lee Myung-bak said, "Green growth means achieving sustainable growth by reducing greenhouse gas emission and environmental degradation." In addition, he stated that it constitutes a new national development paradigm which seeks to create new growth engines and new jobs out of green technologies and clean energy.

President Lee chose to speak of ‘green growth’ rather than the ‘green economy’ in order to emphasize the synergetic relationship between environmental objectives and the economic growth objectives to be pursued at the same time.

As a pioneer of this new paradigm, the Korean Government has been actively promoting its policy on green growth. With its 5-year National Plan on Green Growth, Korea has allocated 2% of its annual GDP to green growth projects, doubling the UN’s recommendation. In November 2009, Korea set a mid-term target to reduce greenhouse gas emissions by 30% below the Business As Usual (BAU) level by 2020.

In order to facilitate the realization of green growth, the Korean Government also enacted the Framework Act on Low Carbon Green Growth. Last April, a bill that will initiate an emissions trading system in 2015 was proposed to the National Assembly.

The United Nations Environment Programme (UNEP) selected Korea’s green growth policy as its first case study in 2010 and said, "The Republic of Korea’s National Strategy and Five-Year Plan for Green Growth represent a major attempt to fundamentally transform the country’s growth paradigm from ‘quantitative growth’ to low-carbon, ‘qualitative growth’.”

International Cooperation for Green Growth

Our planet has been sending us signals to say that we need to come up with feasible solutions to deal with the problem of climate change very quickly. Recognizing the urgent nature of the issue, President Lee Myung-bak called upon countries to take more proactive, "Me First" attitudes during the UN Framework Convention on Climate Change (UNFCCC) Conference in Copenhagen in 2009.

To be successful, green growth needs to be global, dynamic, and fluid enough to cross over political borders. As citizens of planet earth, we all share the responsibility for a sustainable future. Hopefully, all countries will choose to join this truly important initiative.

For its part, Korea has tried to mainstream green growth in international fora such as the UN, OECD, etc. It has also promoted global and regional cooperation through the Global Green Growth Institute (GGGI) and the East Asia Climate Partnership (EACP).

The UNEP has noted that "Korea is demonstrating engagement and leadership at the international level by boosting global efforts toward achieving a green economy. Korea was instrumental in the adoption of the Declaration on Green Growth by the Ministerial Council Meeting of the OECD on 25 June 2009."

H.E. Angel Gurria, Secretary-General of the OECD has referred to President Lee Myung-bak as the 'Father of Green Growth,' recognizing President Lee’s leading role in green growth.  

⒜ The Global Green Growth Institute(GGGI)
The Korean Government established the GGGI to provide a comprehensive economic strategy for the shift from fossil fuel intensive growth toward low carbon green growth.

The GGGI was founded upon the belief that economic growth and environmental sustainability are not merely compatible objectives, but are also mutually necessary for the future of humankind.

Based on this principle, the GGGI aims to offer support to developing countries in tackling climate change and implementing strategies on green growth. As a next step, the GGGI will try to transform itself into an international organization so as to broaden its scope of activities.

Many countries such as Denmark, the UAE, Australia, and Japan have already joined the GGGI and the Institute implemented in-country projects in Brazil, Indonesia, and Ethiopia last year. It plans to expand its activities to more than 10 countries in 2011 and beyond. In order to pursue our dream of green growth, our wish is that even more countries will join the GGGI in the future.

⒝ East Asia Climate Partnership(EACP)
As a part of such efforts, President Lee Myung-bak proposed the 'East Asia Climate Partnership' (EACP) in 2008, which aims to assist developing countries while simultaneously fostering regional cooperation. This partnership will provide a regional platform to pool collective wisdom and share green know-how.

The East Asia Climate Partnership is a capacity-building development cooperation project designed to address climate change in developing countries and sustainable growth in the Asian region. From 2008 to 2012, operating costs total 200 million US dollars.

⒞ Global Green Growth Summit(GGGS)
Last June, the Global Green Growth Summit was held in Seoul to celebrate the 1styear anniversary of the establishment of the Global Green Growth Institute (GGGI). In his opening speech, President Lee Myung-bak announced plans to establish a Green Technology Center and a Global Green Technology Award to promote green growth.

Many developing countries continue to be concerned that the focus on environmental sustainability may restrict economic growth. However, green growth pursues both economic growth and environmental sustainability, and emphasizes the importance of green technology. With green technology, green growth will create new development engines that were previously unheard of.

Many participants in the Global Green Growth Summit (GGGS), including  Angel Gurria, Secretary-General of the OECD, Dr. Noeleen Heyzer, Executive Secretary of the UNESCAP, and other ministers and experts from 25 countries and international organizations, emphasized that green growth is the essential strategy for sustainable development.

⒟ Green Growth Alliance
On the occasion of President Lee Myung-bak’s state visit to Denmark last May, the Korea-Denmark Green Growth Alliance was established.

This partnership makes sense as Korea is a ‘fast mover’ on green growth with comprehensive national and international initiatives, while Denmark is a ‘first mover’ on this issue. Cooperation between a fast and first mover will create synergy for green growth in the global community.

The word ‘alliance’ may seem too strong for some, with journalists even asking who the hypothetical enemy of the green growth alliance is. Quite simply, the enemy of the Korea-Denmark Green Growth Alliance is greenhouse gas emission, or CO2.

Although the Green Growth Alliance is not a militaristic alliance, but a value alliance, partners will work together to wage war against CO2. This action will be the first step towards a planet-responsible civilization.

I sincerely hope that that the Alliance will serve as an excellent example of how substantial cooperation can be realized in the area of green growth and climate change.

International Cooperation in the Context of the UN Climate Change Negotiation

It has been widely recognized that a global solution is necessary to effectively confront the current threat of climate change. Although the first commitment period of the Kyoto Protocol will end next year, UN climate change negotiations have not made substantial progress.

However, as long as we expect others to change before making our own changes, no progress will be made. In order for the negotiations to reach a conclusion, an action-oriented, proactive attitude is imperative. The stakes are too high; we must act while resolutely standing on the right side of history.

Climate change is one of the greatest challenges of our time and can adversely impact our daily lives, economic growth, and industrial structures. It is therefore vital that we pool our wisdom and diligently work to transform this challenge into a new opportunity.

Korea strongly believes that all Parties to the UN Framework Convention on Climate Change (UNFCCC) should exert their utmost efforts for the establishment of a successful post-2012 climate regime as soon as possible.

The 18thConference of the Parties to the UNFCCC (COP 18) in 2012 will be held in Asia, and Korea has offered to host the Conference in order to contribute to addressing the global agenda on climate change. 

Korea has achieved economic development in a very short period of time. During this process, Korea has constantly strived to find a balance between economic growth and environmental sustainability.

With the benefit of such experience, Korea is well-positioned to play a bridging role between developed and developing countries. 

Ⅲ. Korea’s Energy Policy: Renewable Energy and Nuclear Development

Necessity of a Paradigm Shift for Energy and Economic Development

Let me turn to the subject of the energy sector. As President Lee Myung-bak has said, our planet may not be able to sustain its projected population of 9 billion people by 2050. Ensuring an energy supply to continually expand growth requires a radical shift from dependence on energy sources that are rapidly running out.

New and renewable sources of energy are essential to meet the rising demand to reduce poverty and tackle climate change. They are the key to green growth, cleaner consumption and production, and sustainable development. That is why Secretary-General Ban Ki-moon mentioned that the UN system is proposing a three-pronged energy goal by 2030. The goal is, firstly, to ensure universal access to modern energy, secondly, to improve energy efficiency by 40%, and lastly to increase the share of renewables to 30% of the overall global energy mix.

Transforming the current fossil-fuel intensive energy system into a more renewable-focused energy mix will simultaneously ensure sustainable economic growth and environmental protection. This issue is crucial to the green growth paradigm and for the transition from a brown economy to a green economy.

We think it is crucial for the global community to gather its efforts to integrate economic, social, and environmental development goals in order to achieve sustainable development.

In terms of energy for development, international processes need to focus on three distinct aspects: firstly, ensuring universal access to modern energy, secondly enhancing energy intensity, that is to say, the energy efficiency of national economies, and lastly, boosting the share of renewable and safe energy to make it economically, environmentally, and socially viable.

According to the International Energy Agency's 2010 World Energy Report, under the assumption of the most renewable-supportive policies, the share of renewable energy has the potential to expand to 26.5% of the world energy mix by 2035 from less than 15% in 2008.

Korea’s Policy Background and Goals for Renewable Energy

Since the mid-1970s, Korea's energy consumption has notably increased due to rapid economic growth fueled by the heavy and chemical industries. By 2009, Korea was ranked as the ninth largest energy-consuming nation in the world.

Yet, 97% of the Korean energy supply is still from overseas and 84% of the energy supply comes directly from fossil-based energy sources. Korea is taking concrete action to increase the energy efficiency and supply of clean and renewable energy so as to help the country become less dependent on fossil-fuel based energy.

Korea has set a target to achieve a 15% share in the world solar and wind markets and become a top five renewable energy country by 2015.

Accordingly, Korea plans to invest a total of forty billion dollars in the sector and expects the share of domestic renewable energy to increase from 2.5% in 2009 to 11% in 2030.

To reach our national renewable energy goal, many sincere efforts have been undertaken by the Government. The Korean Government has, for example, targeted ten green growth industry areas where it can have a competitive edge in the world market, focusing on renewable energy industries.

Under this policy line, the Korean Government has been committed to increasing renewable energy installations in several parts of the country. In the case of wind energy, the Jeju Island Wind Power Project is the most representative example.

In the case of solar energy, Korea is competitive in solar panel and other related industries, and also has been experimenting with solar power housing projects.

Another success story is the case of LG chemical’s hybrid car battery. LG chemical has successfully manufactured electricity powered hybrid car batteries. Its products have been widely used by the world hybrid car market, including in General Motors’ vehicles.

Korea and its products in the renewable industry are in this way contributing to the transformation of global industry from high carbon growth to green growth.

As for international and regional organizations in the renewable energy sector, Korea is very active in the International Renewable Energy Agency (IRENA). IRENA opened its first Assembly this April in Abu-Dhabi with the aim of enhancing international cooperation in the development and dissemination of renewable energy. It is the first and largest organization of its kind and many countries have already expressed their appreciation and expectations for its leading role in this field.

In accordance with its state vision for green growth, Korea has placed a great deal of effort into the founding of IRENA. Indeed, thanks to our Government's achievements in promoting renewable energy, Korea was chosen as one of the Council members at the inaugural Session of IRENA's Assembly. Together with 20 other members of the Council, Korea will be working to ensure the success of IRENA.

The topic of new and renewable energy is at the center of international discussions everywhere these days. In fact, I had the chance to visit Masdar City in Abu Dhabi, in the UAE last April on the occasion of the first assembly meeting of IRENA. I was indeed very impressed to see the total transformation of this natural resource-based economy into a Carbon-Neutral Zero-Waste city; an unprecedented feat in the world. This is a low-carbon, renewable energy-powered city that is pioneering best practices in sustainable urban planning, design, and development.

Korea’s Nuclear Development and its Policy Directions

Let me wrap up by saying a word about Korea’s nuclear energy policy. Nuclear energy still has many advantages as a cost-effective and clean energy source despite recent security concerns that arose as a result of the Fukushima nuclear disaster.

While efforts to foster renewable energy sources are increasing worldwide, we cannot yet phase out nuclear energy considering its comparative advantages.

For over 30 years, the Korean nuclear power program has been supplying cost-effective energy, leading economic and industrial growth, and contributing vastly to the success of technical development.
Korea is committed to reducing any threats related to nuclear power and expanding its capacity in response to climate change and environmental problems. Through continuous technical development, we hope to make considerable advancements both in the safety and cost-effectiveness of the nuclear power supply.

For the stability of our energy supply, nuclear power is the most realistic alternative to conventional energy sources in many countries, including Korea. Therefore, the Korean Government will continue to push ahead with current nuclear policies and with enhancements in security measures.

Ⅳ. Closing

Importance of Sustainable Development

In his acceptance speech after being reelected on June 21st, Secretary-General Ban Ki-moon stated that climate change and sustainable development would be at the top of his agenda during his second term as Secretary-General.

At the upcoming UN Conference on Sustainable Development (Rio+20), the global community has enormous expectations to implement the Rio+20 Agenda. The priority agenda is to promote sustainable development and to re-launch the fight against climate change. As a Co-Chair of the preparatory committee meeting of the UN Conference on Sustainable Development, Korea will do its utmost to promote green growth. 

Climate Change is one of the gravest challenges in the history of humanity. It is time for us to demonstrate our strong will to tackle this enormous challenge while charting dynamic new pathways to effectively address climate change.

We can no longer afford to procrastinate. The world renowned economist Sir Nicholas Stern has said that if we act now to tackle climate change the cost will only be 1% of GDP each year. But delaying action could result in a cost of as much as 20% of GDP. As human beings, we can only exist as long as nature exists. As such, it is absolutely imperative that we mobilize the will and the necessary financing from the international community to actively confront climate change before it is too late.

There is a saying in Korea that birds who fly higher see farther. We are keen to broaden our perspective, and look forward to working closely with the UN in developing green growth and sustainable development strategies adapted to the pressing issue of climate change. Only then will we collectively be able to both fly higher and see a greener future up ahead.

Thank you.