In 2008 Korea announced ‘Low Carbon, Green Growth’ as its vision for mid-to long-term development (2009-2050) together with a voluntary target of 30% reduction of GHG emissions from the business as usual scenario by 2020. To implement this vision, it launched a National Green Growth Strategy in 2009 along with the countries’ Five Year Plan (FYP) for 2009-2013. One of the key instruments to achieve the countries’ new vision was the establishment of a national Emission Trading Scheme (ETS), scheduled to start from January 2015.
The development of the ETS along with the implementation of the Strategy has so far had notable impacts not just on industry but the wider public too. It has led to substantial investments on green technologies and changes in public attitudes to the issue of climate change.
There are a variety of stakeholders involved in the ETS, including several ministries and private sector actors. Although it is too early to fully evaluate the success of the strategy and emerging ETS, consistent political commitment from the Presidency (even through a change of leadership) together with ongoing coordinated efforts among all stakeholders, provide strong indications of its success.
EU-ETS; Australian ETS; International Emission Trading Association (IETA)
Financial resources to develop the Green Growth Strategy and the Emission Trading Scheme have come mostly from the government sources. The government has relied on using public expenditure to mobilise private finance. For example, initial feed in tariff for renewable energy was used to build private sector capacity and later on it gave way to production obligations. Currently, to promote industrial energy efficiency measures government has provided for USD 2 billion as public support. The 2009–2013 Plan has also provided a public credit guarantee to green technology and green industry sectors with a target of raising total support from USD 2 billion in 2009 to USD 5.6 billion in 2013.
Overall South Korea spends about 2 % of GDP annually on green growth measures. Korea is also establishing a Low Carbon Green Fund. This fund’s purpose is to support R&D of renewable energy, establishment and operation of emission exchange, and emissions reduction facilities. Profits from allowance auctions, emissions exchanges, trading commission, and fund management will be combined to raise this fund.
- The Presidential Committee on Green Growth (PCGG)
- The Ministry of Environment (MOE)
- The Ministry of Trade, Industry and Energy (MOTIE)
- The Ministry of Strategy and Finance (MOSF)
- Legislation & Judiciary Committee of National Assembly
- GHG Inventory & Research Center of Korea (GIR)
- Korea Environment Institute (KEI)
- Local level authorities
- Global Green Growth Institute (GGGI)
- Korea Energy Management Corporation (KEMPCO)
- Korea Environment Corporation (KECO)
- Korea Forest Promotion Institute (KOFPI)
- Korea Transportation Safety Authority (TS)
- Korea Chamber of Commerce & Industry (KCCI)
- Korea Exchange Inc. (Designated for emission permits trading exchange)