UN ESCAP Regional Symposium on Low Carbon Economy (13-14 October, 2010, Bali, Indonesia)

Chang-Gil Kim (changgil@krei.e.kr)

Contents
I. Introduction II. Meaning of Green Growth III. Case of Green Growth in Korean Agriculture IV. Tasks for Implementing Green Growth in Ag V. Concluding Remarks

 Introduction

Introduction
Why for Green Growth?
Global warming mega trend leading future society - Climate change issue as one of the most serious global challenges (global temp 0.74 and Korea temp 1.5 over past 100 years) (global average temp 6.4 and sea level 59cm by the end of 21c) Crisis in energy resources - Exacerbation of global imbalances drawn from economic development of BRICs - Extraction period: 43 years of oil supply, 62 years of natural gas supply The World is going green - Leading green path in advanced and many developing countries - Many countries taking initiatives to help develop eco-friendly tech
Need to adopt a new growth strategy that addresses both environmental and economic concerns by reducing GHGs and improving energy efficiency

Koreas Initiatives of Low-Carbon Green Growth

President Lee Myung-bak embraced a vision of Low-Carbon Green Growth on August 15th, 2008
Creating synergy from harmonious workings of the environment and the economy New development paradigm creating jobs and new growth engines with using green technology and clean energy

Progress of Green Growth Implementation

Jan 2009: Setting up the Presidential Committee on Green Growth July 2009: Announced the Five-Year Plan for Green Growth (2009-2013) April 2010: Enacted the Framework Act on Low Carbon Green Growth

II

Meaning of Green Growth

Meaning of Green Growth

Origin and Progress of Green Growth Term
- newly-coined by The Economist magazine in January 27, 2000 - Ministerial Conference on Environment and Development of UN ESCAP in 2005 - Declaration of Green Growth in OECDs ministerial council in June 2009

Definition of Green Growth (Framework Act of LCGG, Article No.2)

- growth achieved by saving and using energy and resources efficiently to reduce climate change and damage to the environment, securing new growth engines through research and development of green technology, creating new job opportunities, and achieving harmony between the economy and environment

Comparison of Economic Growth and Green Growth

Conventional Economic Growth Green Growth

Tradeoff

Complement

Environmental Conservation

Economic Growth

Environmental Conservation

Economic Growth

Prerequisite for Implementing Green Growth

- Requiring for considerable economic costs and efforts - Need for changing the life styles and consumption pattern - Need for stakeholders understanding and cooperatives

Green Growth Paths in Developing and Developed Countries

Rich Climate Risk (Per Capita GHG emission) Safe Limit

C
Tunnel

D
Middle Income

B
Poor

A
Development Level (GNP)

Source: Munasinghe(2010)

Approach to Reaching the Goals of Green Growth

Economic Growth

<Harmonization>

Environmental Sustainability

Changing consumption pattern, changing production and technology, environmentallyfriendly policy Minimizing environmental Improving eco-efficiency of load production and consumption with carrying capacity

< Green Growth > Synergy effect of environmental & economy (win-win strategy)

Three Keys to Achieving Green Growth

Promote steady growth while minimizing use of energy and resources
Industrial restructuring to cut energy use Eco-efficiency improvement

Minimize environmental impacts (CO2 emission)

Developing and promoting clean and renewable energy sources Implementing mechanisms for CO2 mitigation

Develop new growth engines

R&D investment in green technologies Promoting green industries and encouraging export

Conceptual Scope of Green Growth in Agriculture

More broad concept of sustainable agricultural development, defined as a environmentally sound and economically feasible development reflecting environmental carrying capacity in agro-ecosystem

Agricultural growth
Green growth
Sustainable agriculture
Environmentally friendly agriculture

Low carbon agriculture

III

Case of Green Growth in Korean Agriculture

Vision and Implementation Tasks for Green Growth in Korea

Vision
Agriculture leading to National Happiness and National Prosperity CO2 Emission Volume: (`07) 18.4million tCO2 Reduce to National Target Bio-energy Supply Ratio: (`07) 6.6% (`20) 15.7% Weight of Eco-friendly Agriculture: (`07) 3.0% (`20) 15.0% Green Industrialization for Low Input and High Efficiency Promotion of Bio-mass Energy Expansion of Green-Tech Equipment Supply Reinforcement of Competency to Cope with CC Promotion of National Health and Enhancement of National Grade Cultivation of Eco-friendly Agricultural base Establishment of Low Carbon System Diffusion of Green Life Implementation

Goals

3 Major Strategies

Sustainable Use and Management of Natural Resources

9 major Implementation Tasks

Vitalization of Rural village Expansion of CO2 Absorbing Green Space Cultivation of High Value Added Bio Industry

50 Major Action Tasks

Promotion of Environmentally-Friendly Agriculture

Continually expansion of environmentally friendly agriculture
- Annual growth about 70% since 2000 (Area of Env-Friendly Farming Practices : 201, 688ha, 11.5% of total agricultural land in 2009) - Strongly government support through Five-Year Plan for Developing Env-Friendly Agriculture

Utilization of Energy-Saving Technology

Geothermal heat (geothermal heat pump)
Light Emitting Diode (LED)

Bio-energy

Plant Factory

Institutional Framework for Implementing GG in Ag

Institutional system for managing green growth affairs in the Ministry for Food, Agriculture, Forestry and Fisheries (MIFAFF) Division of Future Strategy (Director) under the subsidiary of Green Growth Policy Bureau (Director General) Implementing Strategies for Green Growth in Agriculture, Forestry, Fisheries and Food Sectors 6 Implementation Projects
- Green Life: Comprehensive plan for fostering urban agriculture, - Green Energy: Activating energy of livestock manure and expanding biomass town, and utilization of new renewable energy - Low Carbon Policy: Carbon labeling system, target management of GHGs - Infrastructure of Green Industry: Green R&D Investment, Env-Friend Ag Infra - Sustainable Resource Management: Ecosystem conservation - Strengthening International Cooperation: Global partnership 2 Management Projects: - Performance management and feedback system, public relations

III

Strategies for Implementing Green Growth

Strategic Directions and Approach for GG

Basic Directions for Agro-Green Strategy
Paradigm shift to Low-Carbon and Resource Circulation Agriculture with 3R (Reduce, Recycle, and Reuse) From Maximum Production to Optimum Ag Production with Green Technologies Policy Mix through Integrating Agri- and Environ-Policy Programs Consensus Creation and Stakeholders Appropriate Role

Implementation Method : Step-by-Step Approach

Groundwork Establishment Stage (2010-2013) Utilization or Takeoff Stage (2014-2019) Settlement Stage (2020-2030)

<Vision and Goals of Green Growth in Agriculture>

Support and regulation system

Optimal agricultural, environmental and resource management

Crop Animal Useful microorganism

Greenhouse gas mitigation

Development and usage of biological and environmental resources

Preservation of agricultural ecosystem

Ecosystem

Securing safety of agri-food

Animal Microorganism

Maintaining profitability

Soil,

Water,

Air

Contributing to addressing global warming Improving living standard of people

1. Establishment of Resource Circulation Ag

Expanding Sound Environment-Friendly Agriculture
- Expansion of environment-friendly farming practices (organic - agriculture) and districts - Establishing Regional Circulation Agricultural Support Center (tentative) - Effective implementation of Regional-Based Maximum Nutrients Loading System - Promotion of environ-friendly agribusiness (bio-pesticides, organic fertilizers, natural enemy)

Promoting Organic Agriculture and Organic Food Industry

- Establishment of Special District of Organic Agriculture - Development of High Value-Added Organic Processing Food - Promotion of Consumption and Marketing in Organic Products

2. Integration of Ag Policy and Low Carbon Policy

Integration and Coordination between Agricultural policy and Low Carbon Policy
- Reorganization of overall current agricultural policy system - Policy mix or integration for transforming low carbon green growth system - Introducing Environmental Cross Compliance program (i.e., Direct Payment for Low Carbon Agricultural Practices) - Integration of climate policy (mitigation and adaptation)

3. Development and Dissemination of Green Tech

Developing GHGs Mitigation Technology Reduction of Methane from Irrigated Rice Paddies Improvement in Enteric Fermentation of Ruminant Livestock Developing and Disseminating Energy Efficiency Technology
Heat Recovery Ventilator Improving Technology Heat Exchanger Improving Technology

Developing Clean Energy Technology

Utilization of geothermal, solar power, wind power Production of Bio-ethanol energy crops

Developing Convergence Technology (IT, NT, BT, ET)

Plant Factory, Vertical Farm, Bio-refinery with supercritical fluid

4. Policy Programs Using Carbon Information

Actively Utilize Carbon Information (Carbon Market) Introduced Carbon Footprint Labeling System Utilization of project-based carbon market (CDM) Utilization of Emission Trading System (cap-and-trade scheme)

1st Stage : Carbon Emission Certification

2nd Stage: Low Carbon Certification System

5. Utilization of Green Finance in Ag Sector

Supporting green industries using preferential interest rate Financial support for introducing green energy technology in capital-intensive areas (livestock and horticulture sector) Financial assistance for agri-production facilities utilizing green technologies(energy-saving and higher efficiency) Creating agricultural investment fund to provide loan programs with preferential rates for business distributing green agricultural technologies

6. Education and Communication for GG

Substantial Investment /Support for Education and Training Programs Structured education and communication programs targeting core leaders

IV Concluding Remarks

Viewpoint on agriculture in managing GHGs

- Negligence of agricultural sector since less than 3% in GHGs Emission - Significance of agricultural sector (US. EU, Japan)

Paradigm of Green Growth in Agriculture

- From productivity-oriented quantitative approach to qualitative approach based on ecological efficiency

Key to Success for Green Growth Strategy in Ag-Sector - Positive and creative thinking for designing green growth strategy in
agricultural sector - Policymakers leadership and driving force in implementing green growth strategy - Green governance with an appropriate role assignment for stakeholders

Future Work for Implementing Green Growth Strategy

- Economic analysis of GG policy programs : estimating GHGs abatement costs - Evaluation and giving priorities of action programs - Designing the roadmap for implementing strategies

Agro-Green Growth as Future Growth Engines

Contributing Industry for GHGs Mitigation Contributing Industry for GHGs Mitigation Eco-friendly Industry for Managing Territory Eco-friendly Industry for Managing Territory Life Industry for Providing Safe Food Life Industry for Providing Safe Food

Policy Mix

Carbon Agro-Green GHGs Reduction SequestrationTechnology

Biomass Uses

Environ- Adaptation Friendly of Climate Agriculture Change

Research & Develop