Q: Tell us about how green energy can create markets.
A: In order to make industries friendly to the environment, we should recycle energy, substitute fossil energy with alternatives, and raise the efficiency of existing energy usage. According to the World Energy Outlook 2008 published by the International Energy Agency, the world can cut 48 gigatons of the gases that cause global warming by 2050. This means that new businesses will be born to make these cuts.
Q: You explained to President Lee Myung-bak the strategy of green energy industry. Can you tell us about that discussion
A: The Ministry had a chance to talk with President Lee and people from all sectors of business, big and small, at the Blue House. It was to share what the government stands for and what policies the government has in order to boost the green energy industry. We explained why green energy policies should be instated in the current the world effort to make industries friendlier to the environment. It is important that the participants shared the concern that economic growth will be invisible without a green energy philosophy and initiatives. Since we took part in the climate change agreement in 1993, we have taken steps to reduce the gas emissions that cause a greenhouse effect.
Q: You make it sound like our economy and industry faces a challenge from outside. Are we ready to meet it
A: It sure is a great challenge to us. At the same time, however, it will provide us with a new environment for our economy. Rich countries like the US and EU would demand for us to meet the global standard of green energy. That means all products from Korea should be green and friendly to the environment. It will push high the cost of manufacturing products, only to result in lowering competitiveness in markets. The RoHS [Restriction of Hazardous Substances Directive] of the EU that prohibits the use of harmful materials and US acts that mandate the recycling of electronic products are examples. But as we did well in IT industries that evolved from analog industries, we can do a good job in the era of green energy. Green energy is not only a challenge but also an opportunity for us.
Q: Can you tell us more specifically about the categories of the green energy industry
A: There are three categories in it. The first is the new recycling energy that includes solar energy, wind energy, IGCC, and hydrogen batteries. Second are the so-called clean energies. They are CTL, GTL, and CCS. Third are energy efficient products like LEDs and energy storage technologies. To make products meet the requirements means to change the whole process of production.
Q: How are our rivals meeting the challenges
A: Rich countries have plans, long term and mid term, to develop technologies for the era of green energy. They regard climate change and shortage of resources as a new chance for growth. The US set up a Climate Change Technology Program in 2006 to stimulate the private sector to invest their assets into that. The EU also finalized its SET Plan or Strategic Energy Technology Plan in 2007 in order to cut carbon-dioxide emissions and get rid of the huddles that hinder the progress of technology. Japan drew a plan called "Cool Earth" in April 2008 to cut the emissions of carbon dioxide in half by 2050.
It is astonishing that these countries already occupy 63 percent of solar energy and 74 percent of hydrogen battery markets worldwide.
From the private sector, GE has decided to increase the volume of investment from 700 million dollars in 2004 to 1.5 billion dollars in 2014. BP has announced it plans to put 8 billion dollars in green energy technology under its Beyond Petroleum drawn in 2002.
It is natural that private investment funds have been enlarging partnerships with companies with high tech in the green energy fields. According to a survey done by the US Venture Investment Association, the investment in green energy increased from 530 million dollars in 2005 to 2.6 billion dollars in the third quarter of 2007.
Q: Then where are we now
A: I'd better say that we are walking while rivals are running. We count on imported technology and equipment. To produce solar energy, we have to import equipment and parts from outside. That reaches 75 percent. In wind energy, we import 99.6 percent of equipment necessary to meet domestic needs. We have to raise our counterparts to compete with Sharp, Sanyo, GE, Vestas, Wurth Solar, Honda, Enercon, and Ebara- Ballard.
The reason why we have fallen behind is clear. We did not have philosophical readiness, and neither did we invest assets in creating markets inside. As a result, we have revealed weaknesses in climate change trends and the oil crisis.
Q: Finally, what kinds of initiatives should the government take to survive in the fierce races of the green energy era
A: To reduce the gap between countries advanced in green energy and Korea, we have to equip ourselves with a new plan and mindset. The government has drawn up Four Strategic Steps. First of all, we have selected nine urgent technologies and decided to assist private sectors which put their energies into them. They are LEDs, solar and wind power, IGCC, CTL , GTL, CCS and so forth.
For this, the government will invest 1.7 trillion won for 5 years to help private sectors to reach the level of advanced countries. Specifically by 2030, solar energy production efficiency will have reached that of fossil energy. And by 2015, hydrogen batteries will have been supplied to each house.
The government will do its best effort to create domestic markets. It will build one million units of home that use new recycling energies like solar and wind energy for investors and developers. It will also purchase LEDs to booster energy efficiency industries. By doing so, investors and developers can make a certain amount of profits and reinvest them to research and development.
The government will introduce some policies to force city and building developers to facilitate recycling energy utilities. For public construction, 5 percent of the budget should be spent on it. For the private sector, it will give benefits to those who adopt recycling energy. If the steps are taken one by one, then green energy will contribute to creating one hundred thousand new jobs and create 17 billion dollars in production by 2012.
