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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. 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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  1. 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

  2. Ⅰ Introduction Ⅱ Green Growth Strategy of Korea Ⅲ Green Growth Programs in DGFEZ IV Conclusion and Suggestion

  3. Introduction

  4. 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

  5. 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)

  6. 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

  7. 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

  8. Green Growth Strategy of Korea

  9. 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

  10. 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

  11. 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

  12. 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

  13. II. Green Growth Strategy of Korea(5) 3 strategies are connected Green Innovation Green Restructuring Green Value Chain

  14. 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

  15. 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.

  16. 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?

  17. 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

  18. 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

  19. 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.

  20. 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.

  21. 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

  22. 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

  23. Green Growth Programs in DGFEZ

  24. 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

  25. 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

  26. 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

  27. 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)

  28. 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

  29. 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)

  30. 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

  31. 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

  32. 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

  33. Conclusion and Suggestions

  34. 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

  35. 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

  36. 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

  37. Thank You!

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