Fair and Reasonable Action : The Path Forward

1. Fair and Reasonable Action : The Path Forward Equity and Global Climate Change Conference Mayflower Hotel, Washington, DC April 17 - 18, 2001 Dr. Jung-Sik Koh Ministry of Commerce, Industry and Energy Republic of Korea

2. : Developed Countries(OECD, Former USSR & Eastern Europe) : NIEs (Korea, Taiwan, Singapore, HK, Brazil, Mexico) : Developing Countries Today’s World At a Glance (1998, %) Population : 22.4 5.8 71.2 Wealth : 79.4 6.7 13.8 Energy Consumption : 60.6 6.3 33.1 61.2 5.9 32.9 CO2Emission :

3. N  Xi = Pi GDPi  Ei  Ci i = 1 Four Factor Emission Model Xi : Country i’s CO2 Emission Pi : Country i’s Population GDPi : Country i’s GDP Per Capita (US$/Capita) Ei : Country i’s Energy Intensity (toe/US$1,000) Ci : Country i’s Carbon Intensity (C-ton/toe)

4. Per Capita GDP (’90 US$) World Average 4,443 Developing Countries Developed Countries NIEs

5. Per Capita Energy Consumption (TOE) World Average 1.64 Developing Countries Developed Countries NIEs

6. Per Capita CO2 Emission (C-TON) World Average 1.05 Developing Countries Developed Countries NIEs

7. Controllable Variables • Population :  , In the Long-run Const. • GDP :  • E = f (I, F, L, W, ••••) • I : Industrial Structure ( – ) • Domestically Meaningful, Globally No Difference ! • F : Process & Equipment Efficiency (  ) • L : Standard of Living, Life Style (  ) • W : Weather Condition ( – ) • C = f (Energy Mix)

8. Korea’s Efforts to Harmonize Energy, Economy and Environment • Energy Project Special Account : A Firm Commitment to Cope with the Real Issues of Global Warming Revenue Expenditure • Import surcharges on petroleum and LNG • Sales surcharges on Kerosene • Safety management surcharges on LNG and LPG • Promotion of LNG • Energy Conservation • Energy Technology R&D and NRSE Development • Phasing-out of the Anthracite Coal Mines • Others

9. Budget of Energy Project Special Account (Uint : Bil. Won) * Exchange Rate KW/US$ : 951(1997), 1,194(1999), 1,131(2000)

10. Major Achievements in Energy Sector : Energy Conservation and Efficiency Enhancement • Voluntary Agreement : Majority of Korean Firms. • Financial Assistance : Loan & Tax Benefit • Energy Efficiency Regulation : Appliances, Vehicles, Buildings • Citizens’ Alliance for Energy Conservation : Major NGOs • District Heating : 1 Million Households

11. CO2 Reduction Plan of VA Participants in Korea

12. Major Achievements in Energy Sector : Achieving a Less Carbon Intensive Energy Mix Energy Consumption Trend by Source

13. Primary Energy Consumption by Source 2000 1980

14. OECD Average 0.64 France China Korea US Denmark Japan Comparision of Carbon Intensity

15. Energy Technology R&D and NRSE Goals by 2006 • The 10-year Energy Technology R&D Plan (1999 - 2006) • The New NRSE Promotion Plan (2001-2003) • To Supply 2% of TPEC by 2003 - Compulsory Installment, Green Pricing • To reduce total energy consumption by 10% • To supply 3% of TPEC from NRSE • To develop clean fossil fuel technology

16. Perspective to Fair and Reasonable Action Three Principles • Ultimate Per Capita Equity • Flexible, Self-Determined Stabilization Path • Base Year, Target Year • Freezing Around Current Level Impossible • Growth Target should be Allowed • Recommended by J.S. Koh : Jung-Sik Koh, “ Global Warming Related Carbon Dioxide Abatement Proposals”, J.Environ. Sci. (China), 1993, Vol. 5 No. 3, pp269~78. Three Implications • Zero Emission Transportation Energy : A Must • Enhanced Role of Nuclear Energy : Necessary Evil (?) • Add-On CO2 Conversion Tech. For Coal Facilities: A Must

17. Suggestions • Sequestration quota might be allocated to the developed countries according to historical responsibilities • It’s time to answer for the role of nuclear energy under the constraints of global warming • Carbon Intensity could be a practical criterion to make fair and reasonable action for the whole world : Ratchet Clause for the Carbon Intensity