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November 21, 2011

2011 SEAISI Environmental & Safety Seminar. Country Report (KOREA). November 21, 2011. Environmental Policy Developments. 1. Reinforcement of HAPs regulation. * HAPs: Hazardous Air Pollutants. It includes monitoring and control of non-point source pollution from yard to steel making process.

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November 21, 2011

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  1. 2011 SEAISI Environmental & Safety Seminar Country Report(KOREA) November 21, 2011

  2. Environmental Policy Developments 1. Reinforcement of HAPs regulation • * HAPs: Hazardous Air Pollutants It includes monitoring and control of non-point source pollution from yard to steel making process. • HAPs inventory survey study is conducted for iron & steel industry (June, 2011) • Compulsory installation BAT regulation will be applied • ☞ Government benchmarked the BAT regulation of advanced countries (e.g. EU IPPC) • Draft version for facility management standard of HAPs has been released (October, 2011) • ☞ HAPs emitting facility management standards are under discussion ※ Draft version for facility management standard of HAPs

  3. Environmental Policy Developments 2. Asbestos regulation for usage of potential asbestos containing minerals (e.g. serpentine) Korea has banned the manufacture, import and use of products with asbestos concentration exceeding 0.1 % since 2009. And legal guideline on the use of 12 minerals will enter into force April next year. • The accusation of asbestos for using serpentine was cleared by the Korean prosecutor’s office • Government plans to implement “Act of safe management using potential asbestos containing minerals” • ☞ Candidate of ACM is 12 minerals, including serpentine, olivine, dolomite, etc. • Details of regulations such as transportation & usage and mineral lists will be released by the end of this year [Issues] ☞ If dolomite is designated as possible asbestos containing material, steel industry should face strong voices from NGOs for using dolomite for exposing to workers and vicinity communities ☞No countries regulate on asbestos for the natural state of rocks such as limestone and dolomite

  4. Environmental Policy Developments 3. Progress of mercury regulations It is part of comprehensive plan of korean government for global mercury treaty. • Development of management systems for raw material mercury, mercury recovery and storages. • ☞Study on mercury content for formulating unintentional mercury emission. • Tightening of standards for mercury emission facilities(air, water, waste) ☞Set the national reduction goal of atmospheric mercury compounds emissions ☞Evaluate the current mercury emissions to water from source facilities. ☞Development of appropriate waste treatment standard based upon graded approach to mercury content limitation. (*Korean government set the regulation on waste with mercury levels above 0.005 mg/L from leaching test) • Strengthen mercury management infrastructure for global mercury treaty. ☞Building mercury emission inventory on preparation for the report of country implementation by treaty (~`15)

  5. Climate Change Policy Developments 1. GHG & Energy Target Management • Announced sector based CO2 reduction target for 2020 • - It aims to reduce GHS emissions reduction of 30% from BAU(business-as-usual) by 2020 • Reduction target for Iron & Steel Sector is 6.5% compare to BAU by 2020 • (National total: 30%, Industry Total: 18.2%) • Different view on reduction potentails between government and industry • - The Korean government will revisit the issue in 2014 • Submitted the verified statement of GHG emission and energy usage from 2007 to 2010: June • - Corporation criteria(~2011): GHG ≥ 125,000 CO2 ton/year, Energy ≥ 500 TJ/year • Korea sets drastic emission cut goal and companies must submit detailed action plans by December. • - POSCO needs to cut emission levels by 963,000 ton of CO2 in 2012 based on BAU • - POSCO’ target represents 20.6 percent of cuts that need to be made for the entire industrial sector [Issues] ☞ Concerns that Korea is pushing forward a policy that is not being pursued by advanced industrialized economies such as the United States

  6. Climate Change Policy Developments 2. Emission Trading Scheme (ETS) The implementation of carbon emission trading in 2015 is now under consideration by the government after strong opposition from industry to the government's initial plan to start in 2013 • The bill of ETS was submitted to National Assembly in April 2011 • Special Committee for ETS has establised in July 2011 • The bill is under discussion for passage at the National Assembly ※ Details of ETS • Korean Government already implemented the GHGs & energy target management scheme from 2012 • The companies under ETS are subject to being exempted from the GHG & Energy Target Management Scheme.However, general expectations are, target management scheme may transfer to ETS in 2015 • In the case of big economy changes

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