The government will inject a total of W107 trillion (US$83.8 billion), about 2 percent of the GDP, into the Green Growth sector each year for the next five years. This project is expected to bring from W182 trillion (US$142.5 billion) to W206 trillion (US$161.3 billion) in production induced effects and create 1.56 million to 1.81 million jobs. If implemented successfully, it will position Korea within the world's top seven green growth powerhouses by 2020, and within the world’s top five by 2050.
This was disclosed by the Presidential Committee on Green Growth after its fourth session discussed “national strategies for Green Growth and a five-year plan” at Cheong Wa Dae on July 6 under the chairmanship of President Lee Myung-bak.
The government is poised to set medium and long-term greenhouse gas emission reduction targets this year and implement step-by-step reduction plans in each sector starting next year. It will enhance self-reliance on non-oil energy sources by 2012 and increase the global market share of Green technology products from the current 2 percent to 8 percent by 2013. The government also plans to begin trade of carbon emission rights on a pilot basis in 2011 with a goal to nurture it as a market worth W500 billion (US$391.4 million) by 2012.
What made the government set forth such a comprehensive Green Growth policy It was motivated, first of all, by global warming and the energy crisis. Korea is significantly vulnerable to abnormal natural phenomena and is highly dependent upon imports of fossil fuels for 97 percent of its total energy needs. In addition, Korea needs to create new growth engines and accept Green Growth models of advanced countries such as Denmark and Germany which have achieved energy self-reliance.
Green Growth Paradigm
The government’s Green Growth paradigm basically envisages making its economic growth pattern a sustainable, environmentally-friendly one; seeking a virtuous cycle of the environment and the economy to maximize their synergy effects; carrying out a Green revolution in people’s everyday lives; and utilizing Green Growth as new momentum for national development.
The Green Growth policy was initiated by President Lee when he set for a Low Carbon, Green Growth vision in his speech on the 60th founding anniversary of the Republic of Korea in 2008. Since then, the government has been pushing for the implementation of the Green Growth policy as a comprehensive development strategy aimed at creating new jobs and expanding future growth engines through harmonious management of the environment and the economic development.
Three Strategies, 10 Policy Directions
To implement the Green Growth programs, the government put forth three strategies and 10 policy directions. Strategy 1 is aimed at adapting to climate change and achieving energy self-reliance. To achieve these goals, the strategy envisages efficiently reducing greenhouse gas emissions, enhancing non-oil energy self-reliance, and increasing capabilities to adapting to climate change.
Strategy 2 is aimed at creating new growth engines. For its implementation, the strategy envisions developing Green technologies, fostering Green industries, improving the industrial structure, and laying the foundation for a Green economy.
Strategy 3 is aimed at improving people’s quality of life and enhancing Korea’s status. To attain these goals, the strategy is designed to build a Green transport network, introduce a Green revolution in everyday life, and set an example of Green Growth.