NEWS BITES KOREAN GOVERNMENT ANNOUNCES NEW GREEN GROWTH INITIATIVES [as reported The Korean Herald - 4th February, 2010] The Korean Herald reported today that the Government, through the ‘Presidential Committee on Green Growth’ and the Ministry of Administration & Security, has announced a sweeping array of proposed initiatives designed to reduce green house gas (GHG) emissions and help achieve the Government’s target of achieving a 20% reduction on “business as usual” forecasts, by 2030. The following slides provide some background to the announcement and outline the initiatives which cover: • the potential introduction of a ‘cap & trade’ (emissions trading) system • strategies to reduce GHG emissions in areas such as housing, transport, waste, regional government • economic development plans for 10 new ‘green growth engines’ • establishment of an USD 87 million investment fund to nurture green technology firms • reducing food waste
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• establishing a Global Green Growth Institute in 2010 • raising public awareness of the benefits of a green lifestyle Many of these proposals remain subject to their safe passage through the legislature.
KOREA – GREEN GROWTH INITIATIVES
Background In 2008, Korean President Lee set ‘low-carbon green growth’ as a key part of his national vision. In January 2010 he signed the:
Enabling Instrument:
“Basic Act on Low Carbon Green Growth 2010” Co Developer
KOREA – GREEN GROWTH INITIATIVES The “Basic Act on Low Carbon Green Growth 2010’ …………. Sets national & corporate targets for carbon emissions Provides legal grounds for state investment & support for the development of: > renewable energies & > environmentally-friendly technologies Encourages government to promote financing and tax reforms to draw investment in green industries Co Developer Pushes measures to reduce energy use & reliance of fossil fuels in transportation, automobiles, construction, electricity etc
KOREA – GREEN GROWTH INITIATIVES
The Korean Government has devised a 5 year plan under which the nation will:
Invest 2% of GDP annually into R & D on new green technologies and infrastructure. Co Developer
KOREA – GREEN GROWTH INITIATIVES
In November, 2009 the Korean Government committed itself to:
…REDUCE GHG 30% BELOW BAU LEVELS BY 2030 [Equals cut of 5% from actual 2005 levels)
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Definition: “BAU” – Business as Usual
KOREA – GREEN GROWTH INITIATIVES President Lee has established a …… Presidential Committee on Green Growth Chairman: Mr. KIM Hyung-kook
The Committee has outlined some priority measures to fight climate change. Co Developer The following slides present information on these proposed measures, many of which remain subject to legislative processes:
KOREA – GREEN GROWTH INITIATIVES Proposals CAP & TRADE LEGISLATION Government will push for the introduction of a ‘cap & trade’ system by end of 2010 (subject to legislative passage)
HOUSING INITIATIVES TAX
Raise tax rates for owners of homes that consume excessive energy & lower tax rates for owners of homes that consume less energy
Cut registration and acquisition taxes by 5-15% for homes built or expanded in an energy efficient way Note: The government will subsidize local administrative units for any shortfall in these taxes OTHER INITIATIVES
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Tighten environmental regulations on new buildings Provide low interest rate loans for energy-saving housing proposals
KOREA – GREEN GROWTH INITIATIVES Proposals REDUCING VEHICLE EMISSION INITIATIVES
Change the basis for vehicle taxes from an ‘engine displacement’ system to an ‘energy efficiency’ system
Encourage high energy-consuming industries (such as steel & ship building) to use information technologies to boost energy efficiency Promote hybrid cars and other green transport means in designated high-traffic congestion areas Introduce 28,000 more environmentally friendly buses Co Developer REGIONAL GOVERNMENT INITIATIVES
Reduce energy consumption by 10%
KOREA – GREEN GROWTH INITIATIVES Proposals PROMOTING 10 NEW ‘GREEN GROWTH’ ENGINES Target growth industries include: > > > > > > > > > >
Carbon capture and storage Smart grid technologies Next generation rechargeable batteries LED lights ‘Green’ personal computers High-efficiency solar batteries Advanced light-water nuclear reactors High-tech water treatment system Green cars Fuel cells
INVESTMENT FUND
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Establish a KRW100 billion (USD90 million) investment fund to nurture 1,000 green technology firms by 2013
KOREA – GREEN GROWTH INITIATIVES Proposals INTERNATIONAL INITIATIVES Establish a Global Green Growth Institute in 2010 to help countries share their experiences and know-how to promote green growth and fight global warming Increase assistance to poor countries to help develop clean water resources and reduce carbon emissions Promote joint study with the OECD on green-growth strategy
REDUCING FOOD WASTE Reduce food waste by 20% Co Developer
PUBLIC AWARENESS Conduct a national “Me First” campaign to promote a green lifestyle amongst the Korean people