Policies and Measures to Address Climate Change in Korea

1. Policies and Measures to Address Climate Change in Korea Shin Boo-nam Deputy Director-General MOFAT, KOREA

2. Contents I. Korea’s Unique Energy Situation II. Government Response to Climate Change Mitigation II-1 Energy Conservation Measures II-2 Energy Supply Measures III. Energy Demand and GHG Projection to 2020 IV. The Way Forward

3. I. Korea’s Unique Energy Situation • four-decades-long transformation from predominant agricultural economy into export-oriented industrial economy • energy sector responsible for more than 80% of the GHG emissions • 10-fold increase in Korea’s primary energy consumption during the last three decades, reaching 215 million TOE in 2003 • total gross emissions of GHG :154.7 million TCE in 2002

4. II. Government Response to Climate Change Mitigation • Established Inter-Ministerial Committee on the Framework Convention on Climate Change (1998) • Chaired by the Prime Minister • Comprised of competent Ministries, national research institutions, and industries • Adopted ‘The Third Comprehensive National Action Plan for the Framework Convention on Climate Change’ (effective from 2005 to 2007) • Financial funds amounting to 20 billion dollars, including 8 billion dollars from private sector, being earmarked for the Plan

5. II-1. Energy Conservation Measures • Voluntary Agreement • Participation of more than 1,000 factories, with 58% of industrial energy use in 2003 • Demand Side Management (DSM) Program • Promotes efficient utilization of energy through a rebate system for high-efficient electricity appliances • Fuel-efficiency Rating and Labeling Program • Encourages car manufacturers to produce more fuel-efficient vehicles

6. Promotion of Mass Transit System • Integration of the subway and bus lines, along with expansion of bus-only lanes in metropolitan areas proved quite successful • Energy Efficiency Rating and Labeling Programs • Adopted for various household appliances (eg. refrigerators, air conditioners, clothes washers, incandescent bulbs, fluorescent lamps)

7. II-2. Energy Supply Measures • Power Sector Measure • Expansion of nuclear and natural gas in the power sector regarded as important option in Korea • Promotion of Combined Heat and Power (CHP) • Provides heat and power to more than 500 factories in 21 industrial complexes over the country • Low Carbon Energy System: the role of renewable • Target being set to raise the share of new and renewable energy in total primary energy consumption to 5% by 2011 from current 2.3%

8. III. Energy Demand and GHG Projection to 2020 • Korea’s energy demand and resultant CO2 emissions projected to increase through 2020 • Total primary energy demand and the resultant carbon dioxide emissions projected to increase at an average annual increase of 2.8 percent and 2.3 percent respectively between 2002 and 2020 Table 1 - Indicators on Primary Energy Consumption and CO2 Emissions from Energy Sector

9. Main drivers behind increasing energy demand and resultant CO2 emissions • GDP growth • increasing ownership of vehicle and household appliances • growing number of household ☞ However, the demand for primary energy expected to grow more slowly than GDP through 2020, due to notable factors such as downward trend of energy-intensive manufacturing

10. IV. The Way Forward • Korea projected to witness growing energy demand in the coming decades. • World’s toughest challenge: meeting the future energy demand and reducing GHG emissions while not impeding economic development • Development of more efficient technology emerging as a long-term viable option for meeting the world’s challenge. • Annex I parties have significant role by spearheading technological assistance • In accordance with the principle of CBDR and the specific circumstances of each country as stipulated in UNFCCC

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