Agenda
Environment issues and sustainable energy use are considered important political issues in South Korea. Climate change has increasingly become a main concern for the Korean government as the country is rather exposed to environmental changes caused by global climate changes and green economic growth seems appealing. The South Korean government has within recent years presented highly ambitious climate change laws.
Institutional Structure
The South Korean Ministry of Environment is responsible for domestic climate related issues along with the protection of natural and ambient environment and pollution prevention. The ministry consists of four complementing divisions with climate policies belonging to the Environmental Strategy Office. The Ministry of Foreign Affairs is handling climate politics on the global stage.
Budget
South Korea was hit hard by the 2008 financial crisis with many investors withdrawing capital from the country. The country has since recovered rather well by bringing down public debt but still stimulating economic growth, resulting in a recovery thrust from international investors. South Koreas is however facing long run economic problems as the ageing population represents an unrealized fiscal burden.
History
South Korea has since its proclamation and separation form North Korea in 1948 experienced a major economic development, and today it the 13th largest economy in the world. In the nineties and early noughties green house gas emissions rose dramatically as the economic growth continued to increase rapidly, but within recent years South Korea has completely reversed the view and concern for climate changes.
The Kyoto Protocol
South Korea did not sign the 1997 Kyoto Protocol as South Korea was then considered a development country. Since then South Korea has gone through a tremendous economic development without much concern about climate change implications, but it is however presently very focused on bringing down green house gas emissions.
Challenges
Energy and environment challenges
South Korea is facing serious energy challenges as it imports 97 percent of its total energy requirements. Water scarcity is one highly critical challenge facing the country, and urbanisation and rapid industrialization have caused significant pressure on environmental resources.
Challenges regarding emission cuts
South Korea has ambitious plans to reduce green house gas emissions, but due to a traditionally high dependence on foreign energy resources and vulnerability to fuel price shocks, the country is already quite energy efficient, which makes it difficult to further raise the energy efficiency. Moreover, the energy prices are already rather high in South Korea, and as 75 percent of total emission cuts will come from the industrial and power sector, the cost of electricity and manufactured goods will rise further.
Climate change as a threat multiplier
The South Korean government has expressed concern that climate change implications such as floods and droughts will work as a threat-multiplying factor. Asia is a continent already facing disputes and conflicts – most obviously between North and South Korea – and fear is that climate change implication will further intensify disputes.
Current Status
South korean emissions have doubled and since 1990 now slightly exceeding in overall emissions and making South Korea the world’s seventh largest greenhouse gas emitter. Furthermore, the country has the fastest growing emissions among the 44 OECD nations. The 2009 Framework Act and the 2012 emissions trading system though represent a recent and major change in the Korean attention to green growth.
Key Policies
“Green New Deal” stimulus package, 2009
In the beginning of 2009 South Korea decided to respond to the financial crisis and increased climate related problems by passing a $32.1 billion stimulus package with about 80 percent allocated to green growth. The ambitious green stimulus proportion focuses mainly on renewable energy, energy efficient buildings, low carbon vehicles, public transportation, and water and waste management.
Five Year Plan for Green Growth, 2009
Later in 2009 the South Korean government announced that it will invest further $85 billion over 5 years in green growth, which is equivalent of 2 % of the country’s total GDP. The expansion of the “Green New Deal” focuses on investments in green industries and technologies, with Korea aiming to increase its share of the market of clean technologies to 8 percent. The “Green New Deal” can be seen as the platform of Framework Act on Low Carbon Green Growth passed later in 2009.
The Framework Act on Low Carbon Green Growth, 2009
The Framework Act on Low Carbon Green Growth is the Korean flagship legislation, meaning all other climate change related legislation, policies and regulations need to be consistent with the objectives set forth in the framework act. It calls for the government to establish and implement national climate strategy plans every five years for a planning period of 20 years, which will deal with various aspects of climate change adjustment.
Highly ambitious Cap and Trade Scheme, 2012
South Korea is planning to launch, what could be the world’s most ambitious cap and trade market in 2015. It targets to bring down the expected green house emissions in 2020 by 30 percent, meaning that the emissions in 2020 will be 19 percent below the actual 2010 emissions. To comparison, EU targets to bring down 2020 emissions by 5 percent compared to 2010. Bloomberg New Energy Finance and Ernst & Young conclude that the scheme is the most ambitious yet proposed anywhere, and could result in the highest carbon price globally.
Key Figures
Domestically, South Korea imports 97% of its energy sources from abroad. In 2008 South Korea had the 19th highest emission rate per capita, and in 2009 oil, natural gas and coal/peat amounted 81 percent of the energy consumption – nuclear amounting 16,8 percent. Since then the overall goal of a 30 percent reduction in greenhouse gas emissions has been set forth, and ambitious climate policy plans have been adopted.
Miscellaneous
Seoul’s Air is getting cleaner
Seoul’s fine dust density has been brought down from 61 micrograms per cubic meter in 2007 to 49 micrograms per cubic meter in 2010. Even though the nitrogen dioxide levels is still below international air quality standards, the Ministry of Environment has effectively improved the air quality of the south Korean Capital and promise to continue their work.
Climate friendly bonds
The Export-Import Bank of Korea – also known as Korea Eximbank (KEXIM) - has begun to issue “green” or climate friendly bonds. KEXIM plans to use proceeds to extend loans to projects that promote the transition to low carbon and climate resilient growth, and thereby making profit for investors - and with $1.8 billion orders from about 100 investors demand was strong at the launch. Green investment opportunities thereby seem to delight investors.
Transition to Globalisation
Partnership between South Korea and United Nation
The highly ambitious South Korean climate stimulus package, policies and political climate goals set forth in 2009 has led to an extensive partnership between South Korea the United Nations Enviroment Programme (UNEP). It is a clear indicator of how the international community is increasingly acknowledges the South Korean effort to bring down green house gas emissions.
Political Tools » Global » UN » Policies » Environment » Climate
Transition to Political Tools
Regional cooperation
In 2010 ASEAN – an economic and political organization for countries in south east of Asia – all energy ministers agreed on an 8 percent reduction in the regional energy intensity by 2015 compared to 2005 levels. In addition, they agreed to increase the use of renewable energy by up to 15 percent of total consumption before 2015 and pledged to cooperate more in the effort to make south east Asia more green.
Political Tools » Regional » Asia » ASEAN » Dom. Policies » Economy » Energy
Transition to Political Actors
South Korea has set up an International organisation called Global Green Growth institute (GGGI) to promote green sustainable growth. The think tank is planning to provide help and knowledge to developing countries facing economic growth; hopefully assuring that the economic growth will be eco-friendly and sustainable.
Political Actors » Civil society » Think Tanks » Environment
