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Green Growth Strategy for the Sustainable Development in the era of Global Climate Change. Mr. Inchul Park Commissioner Daegu-Gyeongbuk Free Economic Zone Authority Korea. Ⅰ. Introduction. Ⅱ. Green Growth Strategy of Korea. Ⅲ. Green Growth Programs in DGFEZ. IV.

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Green Growth Strategy for the Sustainable Development in the era of Global Climate Change

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Green growth strategy for the sustainable development in the era of global climate change

Green Growth Strategy

for the Sustainable Development

in the era of Global Climate Change

Mr. Inchul Park

Commissioner

Daegu-Gyeongbuk

Free Economic Zone Authority

Korea


Green growth strategy for the sustainable development in the era of global climate change

Introduction

Green Growth Strategy of Korea

Green Growth Programs in DGFEZ

IV

Conclusion and Suggestion


Green growth strategy for the sustainable development in the era of global climate change

Introduction


Green growth strategy for the sustainable development in the era of global climate change

I. Introduction(1)

“Hot, Flat, and Crowded”

  • “The world is Flat”(2005)

  • - globalizationof the economy,

  • society, and culture

  • “Hot, Flat, and Crowded”(2009)

  • - globalization + α

  • - weather is hot

  • - world is overpopulated

  • Thomas L. Friedman,

  • The New York Times, Columnist


Green growth strategy for the sustainable development in the era of global climate change

I. Introduction(2)

Financial Crisis vs. Climate Changes

  • Globally connected

  • Long accumulated causes but abrupt effect

  • Effects to social and political issues too

  • Risk and Opportunity at the same time

  • (危 + 機)


Green growth strategy for the sustainable development in the era of global climate change

I. Introduction(3)

BYD AUTO (比亞迪)Ltd.

  • From battery to electric car

  • Export to US market in 2010

  • Better than the world leading car manufacturers in the production of electric cars

  • New opportunities

  • for prepared

Source: http://www.hani.co.kr, http://www.byd.com, http://www.donga.com, http://online.wsj.com


Green growth strategy for the sustainable development in the era of global climate change

I. Introduction(4)

Presentation is about…

  • Concept of Green Growth Paradigm and

  • Green Technologies

  • Green Growth Strategy of Korea

  • Green Growth Programs in Daegu-Gyeongbuk

  • Free Economic Zone

  • Direction for the Green Future


Green growth strategy for the sustainable development in the era of global climate change

Green Growth Strategy of Korea


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(1)

Environmental Performance of Korea

Rank among 149 countries

  • Environmental health: 37th

  • Water (quality, stress): 28th

  • Bio-diversity: 126th

  • Carbon dioxide emissions: 9th

  • - 1.4% of the world total

  • Environmental Performance: 51th

Economic Figures

$1.2 trillion(14 : OECD)

th

GDP

th

45.2% of GDP(12 : OECD)

Trade Volume

Source : IEA Statistics ‘CO2 Emissions From Fuel combustion’,

http://epi.yale.edu/SouthKorea

th

4.4%(5 OECD) 2001-2007

Growth Rate

Source : OECD Factbook 2009


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(2)

Paradigm Shift

  • 10th most energy spending country in the world

  • 97% of its energy from overseas

High Dependence

of Energy

  • “economic growth based on input expansion model”

  • isnot viable anymore

Old Growth

Strategy

  • Green growth = Sustainable growth

  • Greenhouse gases / environmental pollution

  •  Integrative Approach:

  •  Technology + Way of Living + Mind

Low Carbon

Green Growth

Paradigm


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(3)

Three Elements of Green Growth Strategy

  • Minimization of energy and resources

  • without sacrificing economic growth

  •  Maximization of Energy Efficiency

First Element

  • Minimization of the eco-burden materials

  • with the same energy and resources

  •  Reduction of CO2

Second Element

  • Development of new growth engines

  •  Investment and marketing

Third Element


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(4)

3G strategy for key industries in Korea

  • Existing industries + green technology

  • to reduce carbon emissions

  • and create new markets

Green

Innovation

  • Enhancing energy efficiency

  • + introducing knowledge-service industry

  • + advancing industrial structure

  • to make low-carbon industrial structure

Green

Restructuring

  • Adding green values

  • from production to consumption

  • to meet international standards and

  • contribute to global environmental issues

Green

Value Chain


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(5)

3 strategies are connected

Green Innovation

Green

Restructuring

Green

Value Chain


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(6)

1. Green Innovation Strategy(1)

  • What is Green Innovation ?

  • It is to make major industries to be competitive

  • Green technology development is the key

  • Nine core industries:

  • - Category 1.: iron and steel, petrochemical and textile

  • - Category 2.: the automobile, shipbuilding, and machinery

  • - Category 3: semiconductor, LCD display, and home electronic appliance

  • POSCO FINEX Steel Plant


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(7)

1. Green Innovation Strategy(2) - FINEX

  • FINEX Technology by POSCO

What is Green

Innovation?

FINEX, which POSCO developed in house, is an environment-friendly iron-making process that allows the direct use of iron ore fines and non-coking coal as feedstock. In addition it lowers construction and operating costs and emissions.


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(8)

2. Green Restructuring(1)

  • What is Green Restructuring?

  • - From energy-wasting to low-carbon industries

  • - The introduction of a low-carbon-oriented

  • and knowledge-based economy by creating

  • a new environment-friendly market

  • through the combination of information

  • technology (IT), biotechnology (BT), and

  • nanotechnology (NT) with key existing industries.

What is Green

Innovation?


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(9)

2. Green Restructuring(2) – Solar Power Plant

Conergy Korea

  • Solar Power Plant

  • - Conergy Korea is to expand its Solar Power Plant in SinAn, which is the largest solar plant in Asia.

  • - 24 MWp solar power plant will cover an area of 720,000 m2and produce 33,000 MWh annually.

  • - It is capable of supply in 7,200 households and will help Korea to reducecarbon dioxideemissions by 24,000 tons a year.

Conergy Korea


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(10)

2. Green Restructuring(3) – Smart Grid

  • Smart Grid

  • - An electricity transmission system that can

  • monitor and control the flow of power between

  • utilities and customers

  • Korea – US: Industrial collaboration:

  • - (MOU) KSGA (Korean Smart Grid Association)

  • and GridWise Alliance(US) on 15th Jun 2009

  • Korea – US: National collaboration

  • - (Statement of Intent) on Energy issues

  • - ‘The US-Korea Energy Consultation Forum’as the cooperation channel


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(11)

3. Green Value Chain(1)

What is Green

Innovation?

  • What is Green Value Chain?

  • - From production to consumption

  • - Setting green standards and making the most of

  • IT technologies

  • - Introducing green efficiency into

  • the intermediary stages of the value chain, including

  • exports, marketing, distribution and logistics;

  • - Setting standards for the international environment

  • - Introducing an energy efficient production system.


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(12)

3. Green Value Chain(2) – Homeplus

What is Green

Innovation?

  • Homeplus Green Store

  • - Yeowol Homeplus Store, the first

  • Green Store in the nations, is equipped

  • with solar panels on the roof

  • and other eco-friendly systems.

  • - It is expected to have 30% less CO2 emissions compared to

  • normal stores. Homeplus, one of the major retailers in Korea, is the

  • first retailer who adopted a technology to use CO2as a refrigerant in Korea.


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(13)

3. Green Value Chain(3) – Eco-Mileage

  • Eco-Mileage is a voluntary participation program at Home,

  • School and Corporation to reduce greenhouse gas emissions.

  • Citizens who accumulate Eco-Mileage will receive

  • incentives, which will be reinvested into Co2 reduction.

Voluntary Program

Saving

Energy

Re-investment

Eco-Mileage

Incentive Provided

Incentives

Source : www.ecomileage.seoul.go.kr


Green growth strategy for the sustainable development in the era of global climate change

II. Green Growth Strategy of Korea(14)

Mid-term Plan for Greenhouse Gas Reduction

  • Target 2020 : 4% Reduction of Greenhouse Gas Emission

  • compared to 2005

  • (30% Reduction in terms of BAU)

  • Reduction Areas : Industrial Process(40%),

  • Transportation(18%), Power Generation(6%) etc.

  • Target of Greenhouse Gas Emission in 2020 : 570 mil. tCO2

  • ※ BAU(Business As Usual): the level of greenhouse gas

  • a country is likely to emit if no action was taken.

  • ** Very Aggressive Target for Korea’s Industrial Structure


Green growth strategy for the sustainable development in the era of global climate change

Green Growth Programs in DGFEZ


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(1)

Daegu-Gyeongbuk Region

Population

Number of Manufacturers

Strong base

5.5 million

Daegu·Gyeongbuk

of consumers

13%

& clustered

Beijing

manufacturers

Seoul

Flight to Daegu within 150min.

GRDP

Exports

99min. for Seoul

[Unit : $ billion]

[Unit : $ billion]

266%

49

149%

73

High Economic

Gyeongbuk

18

Growth

49

Daegu

2000

2007

2000

2007

1 hour for Busan

Busan

Major Local

Companies


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(2)

  • Location : 11 districts (6 in Daegu, 5 in Gyeongbuk)

DGFEZ Overview

  • Total Area : 39.6㎢

International

Culture

Industry District

Gumi Digital

District

Seongseo

Industry District

Daegu

Technopolis

Suseong

Medical District

Gumi

Pohang

Yeongcheon

Daegu

Gyeongsan

Pohang Fusion

Tech District

Daegu

Sinseo

District

Daegu

International

Fashion District

Gyeongsan

Academic

District

Yeongcheon

Industry District

Yeongcheon

High Tech Park


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(3)

Vision

Global Knowledge-based Free Economic Zone

Green Energy Corridor

Green Transportation Component Corridor

Solar- Wind - Fuel Cell

Automotive -Shipbuilding- Bicycle

Knowledge-Based Service Corridor

Green IT Corridor

LED - Mobile - Medical Devices - Robotics

Medical - Fashion - Culture - Academic

Gumi

Pohang

Yeongcheon

Gyeongsan

Daegu


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(4)

Goal

Green Energy Corridor(1)

To become a world leading Free Economic Zone of Green Energy

Target

Integration of R&D and Production of Solar Energy

Solar

Energy

Solar Energy Industry Belt from

Raw Materials to Finished Goods

Nuclear and

Sea Power

Uljin

Green Energy Belt

Fuel

Cell

Development of Fuel Cell for Portable

Yeongdeok

Wind Power

Applications, Vehicles and Generators

Sangju

Poly-Silicon

Secondary

Batteries

Gumi

Pohang

Fuel Cell

Creation of Wind Power Cluster with

Wind

Energy

Research Center and Business Enterprises

Renewable Energy

Test Bed

Daegu

Nuclear

Energy

Gyeongju

Linked with wind power generation complex

(Korean East Coast area)


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(5)

Green Energy Corridor(2)

Strengths

Well-Developed Green Energy Supportive Industry

Poly-silicon, Special Gas, New Materials

Close proximity to end users such as Electronics, Automotive and Shipbuilding Companies

Global expansion

- Establishing foreign facilities to provide energy (Chile, Cambodia, etc.)

- Exporting Green Energy parts and materials

Establishing and/or increasing current production capacity

- Establishment of fuel cell production plant

- Transformation to Solar PV by IT and chemical companies

Aggressive Investment by Local Companies

Policies for Promotion of Green Energy

Designation of Green Energy as the Daegu-Gyeongbuk’s Leading Industry

2% of GDP in Green Energy Investment ($85.5 billion USD) over 20 years


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(6)

Goal

Green Transportation Component Corridor(1)

The Global Supply Base for Green Transportation components

Target

Pohang

Daegu

Yeongcheon

Gyeongju

Ulsan

Changwon

Located at the center of the Auto Valley

High Potential for synergy with shipbuilding

(Changwon– Daegu – Yeongcheon – Gyeongju – Ulsan)

industry in Ulsan

Connecting some of the world’s largest Automobile Manufacturers

(Hyundai Motors, GM Daewoo, Renault-Samsung Motors)


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(7)

Infrastructure and Strengths of Daegu-Gyeongbuk

Green Transportation Component Corridor(2)

Industrial Environment

Auto Production by Region (2008)

Clustered R&D institutes for Intelligent and Futuristic Automotive Parts

50.5% of Total Production

DGIST

Gyeongbuk Hybrid Technology Institute

Graduate School of Intelligent

Yeongnam

Incheon & Capital Region

Honam

Chungcheong

Vehicle and Transportation

Automotive Parts Manufacturers by Region (2008)

Infrastructure for Intelligent Automotive Parts and Materials

42.5% of Total Production

ITS Based Intelligent Automotive Parts

Test Center (scheduled)

Yeongnam

Seoul

Incheon

Chungcheong

Gangwon

Honam

Shipping Parts Manufacturers by Region (2008)

Central and Provincial Government Support

77.8% of Total Production(Yeongnam Area)

Policies to emerge as a top 4

“Green Car” producing nation

Jeonnam

Other

Gyeongnam

Ulsan

Busan

Gyeongbuk

Polices for Carbon Zero Vehicles


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(8)

Green IT Corridor(1)

Goal

Utilization of current Infrastructure to build a world – class green IT complex

Target

Multi-media conversion devices

LED lighting

LED display

Mobile

IT Fusion

Industry

Service Application Platforms

LED

Medical

Devices

Consumer Service Robot

IT Fusion

U-Health Service

IT Fusion

Public Service Robot

Imaging Devices

Robotics

Industrial Robot


Green growth strategy for the sustainable development in the era of global climate change

III. Green Growth Programs in DGFEZ(9)

Strengths of Daegu-Gyeongbuk in IT

Green IT Corridor(2)

1. World’s Best IT & Mobile Cluster

431 manufacturers including Samsung and LG

49,000 employees

2. Abundant R&D Research Personnel and Facilities

DGIST, Daegu Center of ETRI, NCNT, PIRO, PAL

MTCC (Mobile Technology Convergence Center)

ROBIC (Robot Business and Industry Promotion)

3. Full Government Support for IT Convergence & Fusion Industry

IT Convergence & Fusion as the Daegu - Gyeongbuk

Leading Industry

$151.2 Billion in IT development investment by 2012


Green growth strategy for the sustainable development in the era of global climate change

Conclusion and Suggestions


Green growth strategy for the sustainable development in the era of global climate change

IV. Conclusion and Suggestions(1)

Challenges and Responses

  • Crisis of global climate change

  • - Paradigm Shift

  • (High energy consumption  Green growth)

  • - Comprehensive Integrated approach

  • (Technology + Lifestyle + Mentality)

  • Korea’s 3G strategy

  • - Green innovation (low carbon and new market)

  • - Green Restructuring (low carbon industrial structure)

  • - Green Value Chain (from production to consumption)

  • DGFEZ’s 3G Corridor

  • - Green Energy, Green transportation components, Green IT


Green growth strategy for the sustainable development in the era of global climate change

IV. Conclusion and Suggestions(2)

Dilemma of Green Growth

  • Individuals : Helplessness

  • - Don’t notice gradual global climate change

  • - Lack a feeling of contribution to green eco-friendly movement

  • - Ignore the current environmental change but fear the vague future

  • Companies : Hesitation

  • - Fear losing market share and/or profits by adopting eco-friendly

  • products

  • - New markets present new opportunities

  • ◆ Countries : Wrangling of responsibility

  • - Economic development and environment conservation

  • - “After you” syndrome


Green growth strategy for the sustainable development in the era of global climate change

IV. Conclusion and Suggestions(3)

Break through the Dilemma

  • Strong and effective national governments

  • - Clear, consistent, long-term-oriented policies

  • - Open forum with all stakeholders

  • (the public, political parties, the media, civil society, etc.)

  • - Business as a partner in green growth strategy

  • - Cooperative R&D efforts between government and industry

  • Cooperation between higher and lower income countries

  • Save “Hot, Flat and Crowded” earth


Green growth strategy for the sustainable development in the era of global climate change

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