Green Growth Policy - Green Growth Policy in Korea 9 July,...

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Unformatted text preview: Green Growth Policy in Korea 9 July, 2009 Suk Joon Kim 1 I. Introduction: Green Growth II. Green New Deal Policy III. Green National Innovation System (GNIS) Green National Innovation System (GNIS) 3.1 Structure of GNIS 3.2 GNIS: Policy Issues GNIS: Policy Issues 3.3 Designing R&D Strategy for Green Technology 3.4 Implementing Green National R&D Program VI. Green Regional Innovation System (GRIS) 2 I. Introduction: Green Growth Introduction: Green Growth 3 I. Introduction: Green Growth (1) Green growth is a growth model of a new paradigm which pursues both “growth” and “environmental conservation” at the same time In the existing economic theories, growth and environment are in contradicting relations Pursue to realize the new paradigm by improving eco-efficiency, changing consumption patterns, and strengthening knowledgeintensive service 4 I. Introduction: Green Growth (2) Low-carbon green growth: new development strategy turning the current green growth: development strategy turning the current “vicious cycle” among energy, economy, climate, and eco-system into the cycle “virtuous cycle” Low-carbon green growth paradigm High Energy Efficiency Strengthening Energy Security Low-carbon Clean Energy Promote Economic Growth & Enhance Ecological Soundness Low CO2 Generation Strengthening Response to Climate Change Source : Prime Minister's Office (2008) 5 I. Introduction: Green Growth (3) Rationale of implementing low-carbon green growth in Korea Energy issues Dependency on overseas energy sources: 97% Petroleum import: ranked 4th in the world CO2 emission: 6th among OECD countries and 1st in terms of growth rate 6th among OECD countries and 1st in terms of growth rate Environmental issues ESI (Environmental Sustainability Index): ranked 122th in the world(2005) Identifying new growth engines and creating jobs Continuous decline of potential growth rate Decrease in jobs for youth 6 I. Introduction: Green Growth* (4) President Lee Myung-bak emphasized Korea’s efforts to reduce greenhouse gas at the G8 summit meeting held in Hokaido, Japan (July 9th, 2008) Key challenges in establishing “Post-2012 Earth Climate Change Framework” include presenting clear mid-term reduction targets for developed countries and introducing incentive system for developing countries, which will help achieve “green growth” and migrate to the “low-carbon society” where economic growth is coupled with greenhouse gas reduction Propose the establishment of the “Climate Partnership in East Asia” mainly participated by East Asian countries * Developed based on Prime Minister's Office (2008) 7 I. Introduction: Green Growth (5) President Lee Myung-bak announced “Low-Carbon Green Growth” vision on August 15th, 2008, commemorating the 60th anniversary of th the country’s foundation Sustainable growth reducing greenhouse gas and environmental pollution New development paradigm creating jobs and new growth engines with using green technology and clean energy 8 I. Introduction: Green Growth (6) Three axes of green growth vision Green growth as a future national vision creating “triple effects” New development by securing new growth engines Improving Koreans’ life quality as well as environment Contribution to the efforts of the international society Improved Life Quality & Environment Contribution to to International Society New Growth Growth Engine "Low Carbon Green Growth" Source : Prime Minister's Office(2008) 9 I. Introduction: Green Growth (7) Vision and goals of green technology R&D master plan Vision Build green superpower by advancing green technologies 3 goals Green industry competitiveness Green S&T capability Technology level (2012) 80% compared with Environmental sustainability Creating green technology Environmental jobs sustainability index (2012) more than 160,000 jobs advanced countries advanced countries Global market share (2020) 90% compared with (2012) more than 7% (2020) advanced countries more than 10% (2012) Join the ranks of top 20 (2020) Join the ranks of top 10 Source : “Green Technology R&D Master Plan (Draft)” by the National Committee, January 13, 2009 10 II. Green New Deal Policy 11 II. Green New Deal Policy (1) Korea’s Green New Deal Policy is aiming at specific achievements like creating jobs and potential growth engines by simultaneously pursuing both “Green” and “New Deal” both “Green” and “New Deal” Develop “Green New Deal Project” by combining job creating policies with green growth strategy like low-carbon, environment-friendly growth and energy saving Maximize policy impact by systematically integrating overlapping green projects without clear orientations, and lead the realization of green economy and the conservation of earth’s environment Developed from The Ministry of Education, Science and Technology et al. (2008) 12 II. Green New Deal Policy (2) Scope of “Green New Deal”: projects that can facilitate transformation into a green economy and create growth and jobs Projects to build resource-saving economy through energy saving, recycling of resources, and development of clean energy Projects to improve life quality and provide convenient and comfortable living lif li environment by establishing green transportation network and supplying clean water Preventive projects for earth’s future and safety of the next-generation through carbon reduction and water security Projects essential for preparing for the future and improving energy efficiency including the establishment of industry / information infrastructure and the technology development technology development 13 II. Green New Deal Policy (3) Relations with other policies/strategies Green New Deal Project is composed of ① projects with high impact in growth and job creation and high relevancy with green industry among “Korean New Deal” projects and “New Growth Engine” projects and ② other green projects with high impact in job creation in job creation Given that “New Deal Project” is large-scale public investment project intended to create jobs, mainly select investment project in the public sector <Green New Deal Project> Industrial bio-mass Green space Recycling of resources 4 rivers Railroad Regional economic zone development Infrastructure to support companies Green Technology Green IT/SW Green home & green office New recyclable energy Water environment LED application Healthcare, education, financial service industries Road, port, logistics High tech fusion industries SW Cultural contents, tourism industry <Korean New Deal Project> <New Growth Engine Project> 14 II. Green New Deal Policy (4) Green New Deal Project; funding requirements and expected size of job creation Funding requirements ($100 mil.) Jobs to be created Project Already reflected (2009) Total Revive 4 rivers Additional requirement (~2012) Total 32.32 338.42 370.73 Already reflected (2009) Additional requirement (2012) Total 93,360 863,060 956,420 3.62 103.63 107.24 7,000 192,960 199,960 13.59 57.92 71.51 25,042 113,025 138,067 Build integrated national land information system 0.19 2.57 2.75 816 2,304 3,120 Rain discharge facilities and small/medium-sized dams 1.37 5.61 6.98 3,063 13,069 16,132 Supply green car and clean energy 2.38 12.83 15.21 1,643 12,705 14,348 Recycle wastes 0.37 6.51 6.89 2,377 13,819 16,196 Green forestation Green forestation 2.32 15.59 17.91 22,498 148,204 148,204 170,702 170,702 - 59.63 59.63 - 133,630 133,630 0.04 3.55 3.58 393 10,396 10,789 Build green transport network network Nine key projects k Green home and green school Eco-river Source : The Ministry of Education, Science and Technology and et. al. (2008) 15 III. Green National Innovation System (GNIS) 16 Ⅲ-1. Structure of GNIS (1) Green innovation system is an innovation system where characteristics of technologies to be developed, organizational activities of innovation of technologies to be developed, organizational activities of innovation agents, and operational mechanism of market and institution are aligned in an environment-friendly mode Characteristics of technologies of technologies Technology innovation driven by environment-friendly technology paradigm Efforts to promote environment-friendly R&D Environment-friendliness considered as an important criteria in selecting and evaluating government R&D projects Organizational activities of innovation agents Environment issue is not recognized as a regulatory factor but as a business opportunity as environment-oriented organizational structure is established at universities, research institutes, and companies Environmental values are placed as important criteria for decision-making at values are placed as important criteria for decision at organizations Market and institution Market structure and incentive system that can facilitate environment- friendly innovation 17 Ⅲ-1. Structure of GNIS (2) Structure and roles of green innovation system Green Innovation System Industry- academia- research institute innovators who have internalized green innovation mode Improved Socio-economic sustainability Continuous supply and pp utilization of green innovation Green growth Market and institution friendly to green innovation 18 Ⅲ-1. Structure of GNIS (3) Three phases in the transformation to a green innovation system Phase 1 Phase 2 Phase 3 End-product management Preventive approach Systematic approach -Develop technologies that can prevent environmental problems in advance through process/product innovation process/product innovation -Establish green innovation system where environmentfriendly innovation is continuously created and socially accepted created and socially accepted -Present regulations and economic incentives to manage “end of pipe” for the purpose of reducing emission of pollutants reducing emission of pollutants Korea has just entered Phase 2 and needs to move to the green innovation has just entered Phase and needs to move to the green innovation system of Phase 3 for a full-fledged carry-out of green growth In Phase 3, environment-friendly technologies are continuously created and socially accepted and socially accepted Innovation in environmental technologies develops into a new growth engine and improves socio-economic sustainability 19 Ⅲ-2. GNIS: Policy Issues (1) Green National Innovation System: Policy Issues In the selection and evaluation of government R&D projects, environmental the selection and evaluation of government R&D projects environmental friendliness should be considered as an important criterion In terms of organizational routine of innovation players, eco-friendly organizational terms of organizational routine of innovation players eco organizational structure should be established in the operational mode of companies, universities, and research institutes so that the environment is recognized as a business opportunity, not as a regulation In terms of market- and system-supporting innovation, there is a need for a terms of market system innovation there is need for market structure and incentive system that can promote new developments 20 Ⅲ-2. GNIS: Policy Issues (2) Green National Innovation System: Policy Issues In the master plan, the scope of green technology has been expanded from the traditional green technology - including eco-friendly technologies for recycling energy and clean energy - to cover the fusion of green technology with new technology like information technology, biotechnology, nanotechnology, or between existing products and industries A comprehensive green technology development involving both central and local governments Transformation into a green lifestyle It is essential to build an optimal green regional innovation system reflecting natural conditions and the capabilities of each region natural conditions and the capabilities of each region 21 Ⅲ-2. GNIS: Policy Issues (3) The Korean government plans to more than double its R&D investment in green technology by 2012 27 key promotional technologies selected based on their strategic importance and contribution to economic growth Key strategies: promoting fusion of green technology, expanding original basic research of green technology, transforming existing industries to green industries and a new growth engine, and establishing infrastructure for green technology Limitations Little consideration on a detailed R&D strategy to develop green technology "Green New Deal" program include construction projects, infrastructure building projects and system improvement projects and R&D is missing 22 Ⅲ-3. Designing R&D Strategy for Green Technology (1) When designing R&D Strategy for green technology, following needs to be reflected - First, strengthening the R&D portfolio of alternative technologies and soft solutions and channeling investment into these areas must be a priority - Second, strengthening R&D in technologies with high potential for long-term sustainability is also required Such technologies include solar power sustainability is also required. Such technologies include solar power, second-generation biofuels, wind power, and energy storage technology. Areas for research and development in the field of solar energy include high efficiency solar modules, and solar energy concentration technology 23 Ⅲ-3. Designing R&D Strategy for Green Technology (2) When designing R&D Strategy for green technology, following needs to be reflected - Third, more R&D to promote low-tech green activities is needed. For this purpose, it is necessary to promote the fusion between these activities and new technology is necessary to strengthen research on the link between green technology - Fourth, it is necessary to strengthen research on the link between green technology and policy. For example, policy research to reform socioeconomic systems and patterns to realize a low-carbon society is needed. Likewise, research to develop an optimal combination between technology development to develop an optimal combination between "technology development" and "diffusion policy" is also required - Lastly, it is necessary to strengthen research to promote green technology-based knowledge. This requires research to facilitate the knowledge flow of green Thi th fl technologies including research on climate change forecasting and adaptation and research on "Green Technology Knowledge Bank." 24 Ⅲ-3. Implementing Green National R&D Program (3) In implementing green national R&D program, followings need to be considered - First, the program should be an integrated R&D program that helps achieve the th R&D th th objectives of the Green New Deal - Second, to improve efficiency, it is desirable for the private sector to lead the implementation - Third, since the program involves various stakeholders, including the central government, local governments, and various private and public institutions, government, local governments, and various private and public institutions, the establishment of an efficient management system is very important - Fourth, since the green national R&D program is to be pursued as an important means of implementing large-scale national R&D, it should not be planned from a supplier's perspective but be based on demand and focus on problem-solving 25 IV. Green Regional Innovation System (GRIS) 26 IV. Green Regional Innovation System (GRIS) (1) To realize low-carbon green growth, the implementation of existing regional innovation projects in a systematic, green way is essential Creating a low-carbon society can be realized through green innovation th in each region The current implementation of the regional innovation project is focused on developing leading industries in metropolitan areas and strategic industries in the provinces strategic industries in the provinces Since green innovation is partially included in these leading and strategic industries systematic and active approach is required for the development of industries, systematic and active approach is required for the development of a solid green regional innovation system 27 IV. Green Regional Innovation System (GRIS) (2) In order to realize low-carbon green growth, regional policy should play an active role It is necessary to transform regional innovation systems to match the new green th one In this context, it requires changes in the direction of regional innovation policy this context it requires changes in the direction of regional innovation policy and reshuffling of innovation projects 28 IV. Green Regional Innovation System (GRIS) (3) Included in the Green-Growth 5-year Plan (’09.7.6) Expand local finances in green technology development: about 25% of central Expand local finances in green technology development: about 25% of central government investment in green technology development Establish ‘Green Core’ for green R&D, Establish regional green governance system Establish G-RTS (Green-Regional Total Information System) Establish green innovation DB 29 IV. Green Regional Innovation System (GRIS) (3) G-RIS (Green Regional Innovation System) Improve Quality of Regional Life Vision Economic Affluence Comfortable Environment Housing Support Systems University Enterprise Energy Consumer Social Equity Office Public Research Institute Enterprise Water Resources Enterprise Residents Consumer Roads Transportation Regional Culture Eco System 30 Thank you! 31 ...
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This note was uploaded on 11/22/2011 for the course BUS 401 taught by Professor Terrywilson during the Spring '11 term at Solano Community College.

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