Current Status of Korea Environmental Industries And International Cooperation

1. Current Status of KoreaEnvironmental Industries And International Cooperation Sept 6, 2010 Korea Environmental Industries & Technology Institute

2. I. Environmental Markets Worldwide ● Global Market Size : 800 billion USD →1,100 billion USD in 2020 ● North America, West Europe, Japan : 82% ● Annual Growth Rate : 3.2% (Developing Countries 9.8%) Source: EBI Report 2020 – The U.S. Environmental Industry & Global Market (2005) 1

3. I. Environmental Markets Worldwide ● Market Size and Growth Rate by Region (Billion USD / %) U.S EBI (2005) 2

4. I. Environmental Markets Worldwide ● Market Position by Region Big USA USA Western Europe Japan Market Size Asia Latin America Canada E-Europe Oceania M-East Africa Small High Low Annual Growth Rate 3

5. CAGR: 17.5% Changes in the size of the Korean environmental market (in KRW trillion) II. Korean Environmental Markets ● Market Size : 40 Trillion KRW / 30 Billion USD (2008) ● Annual Growth Rate : 17.5% (2004-2008) ● 30,000 Business Entities & 185,000 Employees 3.8% of Global Market 4% of National GDP 4 * Ministry of Environment (2009) “Statistics on Korean Environmental Industries”

6. II. Korean Environmental Markets ● Lifecycle Stage by Countries Economic Progress Environmental Industry Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Increasing Pollution Stress Sound Eco-Quality High Reactive Investment 5

7. II. Korean Environmental Markets ● High Increase in Construction for Pollution Management ● Environmental Equipment Manufacturing → Environmental Services ● High Proportion of Energy & Resource Management Sectors 6

8. II. Korean Environmental Markets ● Renewable Energy : 5.8 Million TOE ㆍ2.4% of Total Domestic Primary Energy Supply ㆍ90% of Energy Sources Imported (Oil, Gas, etc) Total Primary Energy (1,000 TOE) New Renewable Energy (1,000 TOE) Total Primary Energy (1,000 TOE) New Renewable Energy (1,000 TOE) 7 Korea Energy Management Corporation (2009)

9. II. Korean Environmental Markets ● Export of Environmental Goods & Services ㆍExport : 2 billion USD / Annual Growth Rate : 32.6% ㆍAir Protection > Water Treatment > Waste Control ㆍExported to China, South East Asia, Middle East, etc (100million KRW) Air Protection Water Treatment Waste Control Others 8

10. Green Growth Green Growth III. National Policy for EnvironmentalIndustries • Synergic between Environment and Economy • - Clean energy & Green Economy • - Green Technology & Green Industry Harmony of Environment and Economy Green Revolution in living Global Green Partnership • 4 River Restoration Project & Sustainable Land Use • Green Transportation System • Green Consumption & Eco-life • Proactive Response to Global Climate Change • Global Leadership as a Green Bridge Country 9

11. 1 of 5 Global Top Countries of Green Growth 1 of 7 Leaders ofGreen Growth Countries Investing Green Technologies & Industry Establishing Infrastructures III. National Policy for EnvironmentalIndustries • Become a respectful green country matured in economy, society, and other aspects • Become the leading countries of green growth • Support East Asian countries for green growth • Promote national brand image in green growth • Promote green technologies, industries, and export • Create green jobs • Prepare policy & Infrastructure for the implementation of the national green growth program 2010 2013 2020 2050 10

12. III. National Policy for EnvironmentalIndustries Vision World Top 5 Green Country by 2050 Focused Agenda Climate & Energy Responsibility Momentum for New Economic Growth Quality of Life & National Pride 1 4 8 Green House Gas Reduction Development of Green Technology Greening of Land Use & Transport 2 5 9 Energy Self-Sufficiency Promotion of Green Industry Proliferation of Green Lifestyle 6 3 10 Adaptation to Climate Change Incentives for Green Economy Global Green Contribution 7 Change of Industrial Structure 11

13. III. National Policy for EnvironmentalIndustries ● Environmental Market : 30 Billion (2008) → 70 Billion USD (2013) 10 Eco-Technologies 10 Eco-Industries 1. Intelligent Water Management 2. Prevention of Vehicle Gas Emission 3. Climate Change Adaptation 4. Soil & Underground Water Clean-up 5. Recovery of Bio-Resources 6. Environment & Health Control 7. Waste Resource Recovery 8. Fusion-based Environmental Tech. 9. Non CO2 GHG Substitute 10. Eco-Product Technology 1. Water Management 2. Green Car 3. Carbon Market 4. Weather Business 5. Urban Mining 6. Soil Remediation 7. Bio-Resource Management 8. Eco-Tourism 9. Eco-Products 10. Environmental Consulting * Ministry of Environment (2009) 12

14. III. National Policy for EnvironmentalIndustries ● Policy-Driven Environmental Industries Higher Environmental Standards → Higher Competitiveness of Eco-Industries 13

15. IV. Korean Environmental Industries ① Water Treatment • World best plant engineering and construction (POSCO, KOLON, GS, Hyundai, etc) • Big-scale seawater desalination technology (Doosan Heavy Industry) • Advanced MBR treatment technology & IT-based monitoring system Park-Type WW Plant Desalination Plant MBR Filtration Color WW Plant Tele-Metering System Riverbank Filtration 14

16. IV. Korean Environmental Industries ② Solid Waste Management • Successful landfill management experience and related technologies • Focused investment into waste-to-energy technologies (LFG, RF, Biomass) • Electric waste recycling business (Urban Mining) Metropolitan Landfill Incineration + Power MBT Waste Separation Landfill Gas Power Refuse-Derived Fuel WEEE Recycling Centre 15

17. IV. Korean Environmental Industries ③ Air Quality Control • Clean vehicle technologies – DPF, CNG Bus, Electric Car, etc • De-SOx & de-NOx technologies for heavy industries • Clean SYS real-time air-quality monitoring system CNG Bus Fuel-Cell Dust Collector DPF De-Sox Equippment Air Monitoring 16

18. IV. Korean Environmental Industries ④ Environment-Friendly Products • Very successful eco-labelling program • Wide-range of environmentally-friendly products available • Rapidly growing business interest & consumers’ awareness No-Hazardous Living Energy-Saving Eco-Shopping Bio-Plastic Products Electric Vehicle 17

19. IV. Korean Environmental Industries ● Major Environmental Companies 18

20. V. KEITI’s Green Business Assistance • Mission : Promotion of Green Industry and Technology • * Regal Base : Act on Environmental Technology Development & Assistance • Established in Apr. 2009 (KIEST+KOECO) • * KIEST : Korea Institute of Environmental Science & Technology • * KOECO : Korea Eco-Products Institute • Main Roles • Facilitation of Green Technology Development • Financial & Technical Assistance for Green Industry • Promotion of Green Products & Services • Promotion of Corporate Green Management 19

21. V. KEITI’s Green Business Assistance • Organizational Structure 20 * Researchers & Staffs : 195 (2010)

22. V. KEITI’s Green Business Assistance • Environmental R&D Program Eco-Technopia 21 Program Green Fusion Technology Clean-Up Technology PCBs Research • R&D Investment to Env. Tech. • Water, Air, Waste, Soil, Carbon • 2001~2010 1 TrillionKRW • R&D Investment to Green Fusion • Bio, IT, Nano + Environment • 2009~2013 24 billionKRW • R&D Investment to Clean-Up Tech. • Soil & Groundwater • 2008~2017 140 billionKRW • PCBs Control Technology • Korean Power Companies • 2005~2015 11 billionKRW Technical Level Up Global TOP 5 21

23. KOREA ECO-LABEL NEW EXCELLENT TECHNOLOGY Promoting the Use of Green Products & Services Providing Carbon Footprint Information Promoting New Excellent Green Technology V. KEITI’s Green Business Assistance • Environmental Technology & Green Product Certification KOREA CARBON LABEL 22

24. V. KEITI’s Green Business Assistance • Environmental Industry Assistance Provide loan service to environmental businesses with good technologies (10 Billion KRW) Environmental Industry Loan Service Green-Chip Investment Fund • Help SMEs to attract investment to commercialize their • newly developed technologies (10 Billion KRW) Create green jobs by means of educating employees & employers about green business (500 persons) Environmental Specialist Training KONETIC (Korea National Environmental Technology Center) website to provide green business information Green Industry & Technology Information 23

25. V. KEITI’s Green Business Assistance • Promotion of Eco-Business Management Promote environmental management for industriesvoluntary involvement in green market Designate environmentally friendly companies and provide incentives Environment-Friendly Enterprise Designation Eco-DesignTechnical Assistance • Develop eco-design guidelines and software • Provide training program for eco-design expert(operate eco-design graduate schools) • Provide information on trade-related environmental • regulations, agreements and standards worldwide • Issue monthly newsletter and hold conference Trade & Environment Information Network 24

26. V. KEITI’s Green Business Assistance • International Cooperation & Trade Facilitation Environmental masterplan for developing countries Environmental projects feasibility study assistance Link-up with Official Development Aids or EDCF Loan Technical Assistance For Overseas Projects Green Exporting Technology Funding Support local technologies to export market International R&D funding to exporting technologies Support international technical research • Overseas marketing assistance for local companies • Foreign environmental market survey • Export counseling & business fair for green industries Green Export Consulting & Market Survey Capacity building programs for developing countries Inviting DCs official to learn Korean green policy & Korean green business Global Green Capacity Building 25

27. V. KEITI’s Green Business Assistance • Korea & China • Environmental Agreement b/t Korea MOE & China MEP (2003) • Joint Environmental Technology R&D : 30 Projects (2004~2010) • China Environmental Project Feasibility Study : 7 Projects (2008~2010) • Annual Joint Environment Technology Seminar : Since 2007 • Korea & ASEAN Countries • Agreement with Vietnam(2000), Indonesia(2007), Cambodia(2009) • Joint Environmental Technology R&D : 8 Projects (2007~2010) • ASEAN Environmental Project Feasibility Study : 20 Projects (2008~2010) • Korea Industries & ASEAN PPP Consultation Meeting (2010) 26

28. V. KEITI’s International Cooperation • Korea & Azerbaijan • Green Cooperation MOU b/t Korea MOE & Azer MNR (2009) • Joint Investment to Azer Water Recycling Plant for Reforestation (2010~2011) • Korean B.A.T Recommendation to Azer MNR (2010) • Korea & Brazil • Green Cooperation MOU b/t Korea KEITI & Brazil Sao-Paulo City (2009) • Korea-Latin America Green Policy Forum (2010. 7) • Korea-Brazil Environmental Business Meeting (2010. 4, Rio & Sao-Paulo) • Support to Business Contract (Forcebel & Brazil Ambiental Co.) 27

29. VI. Suggestion for Further Cooperation ● Environmental Market & Technical Information Exchange ● Local Environmental Masterplan with Korean Expert Groups ● Joint Feasibility Study & Planning on Environmental Projects ● Joint Technology R&D Program (Focused on Local Necessity) ● Business Consultation Session with Korean Environmental Business ● Governmental Level Environmental Cooperation Agreement 28

30. Thanks For Your Attention !!! Stanley SEOK General Manager International Cooperation Office KEITI mozzi@keiti.re.kr www.keiti.re.kr