Korea’s NDC Implementation

2 Sep 2019

Ministry of Environment

No. of heat wave days: 31.4

No. of tropical nights: 17.7

“Abnormal climate in 2018”

Ranking No. of heat wave days No. of tropical nights

1 2018 31.4 2018 17.7

2 1994 29.7 1994 17.4

3 2016 22.4 2013 15.8

4 2013 18.2 2010 12

5 1990 17 2016 10.8

▶ Top five heat wave days and tropical nights since 1973

-100

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GH

G e

mis

sio

ns (

Mt

CO

2e

q.)

Energy Industrial Processes Agriculture LULUCF Waste

696.7690.9692.9694.1

91.9%

3.7%2.1%

1.1%0.2%

1.0%

CO2 CH4 N2O HFCs PFCs SF6

3

87.1%

7.4%3.1%

2.4%

4

Low Carbon, Green Growth

National Development Vision

(2008)

“Paris Agreement”Holding the increase in the global temperature well

below 2°C above pre- industrial levelsPursuing efforts to limit the increase to 1.5°C

above pre-industrial levels(As of 2018, 196 parties participating)

To support the Paris Agreement,

Korea announced its national reduction target (June, 2015)

which is to reduce 37% from BAU* level, followed by emission reduction roadmap.

* BAU : projected emission under current policy scenarios

850.8

536

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100

200

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600

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900

2030 BAU 2030 Target

Tota

l G

HG

em

issio

ns (

Mt

CO

2e

q.)

37%

reduction

below BAU

- setting low-carbon path for companies’ long-term investment pla

- maintaining coherence among newly introduced energy transition plans (e.g.RE 3020) and air quality policies (e.g. fine dust management plan)

- listening to criticism from international community and civil society in Korea- enhancing national reduction policy

(Sectoral reduction)Enhance demand management, integrate technological advances by upgrading in air-conditioning/insulation, e-appliances efficiency and retrofit old facilities

Incorporate comprehensive plan for f ine dust management (Sep.‘17.9) and 8 th basic plan for power demand & supply (Dec. ‘17) into major pol icies

Consider improved energy eff iciency by industry sector and overal l industrial process, and replacement of fuels and materials

Tighten permit standards for new bui ldings , faci l i tate green remodel ing, expand renewable energy

Provide more eco-friendly vehicles (EVs 1 mn →3 mn units), t ighten standards for vehicle fuel eff iciency, improve ship/airplane fuel eff iciency

Joint area

Energy

Industry

Building

Transportation

Reduce waste volume at source and promote recycling across municipal, business,construction and al l other sectorsMinimize landfi l l ing and capture & use methane gases from landfi l ls

Waste

1. Energy

Improve power generation infrastructure- shut down 10 old coal plants by ’22 & replace 6 coal plants with LNG plants- stop constructing new coal plants and nuclear power plants

(LNG and hydraulic power to be used for new power sources)- retrofit old coal plants in greater numbers

Enhance low-carbon energy mix- promote renewable energy (up to 20% by 2030) * previously 11% - shut down coal plants from March to June (fine dust season)- introduce Environmental Dispatch: include environmental & social costs in dispatch process * previously, fuel expenses and operating expenses were considered mainly

2. Industry

Improve energy efficiency of industrial equipment: introduce the certification system for highly energy efficient equipment

Introduce Factory Energy Management System (FEMS) : to be introduced to large-scale factories with policy incentives

Streamline factory facilities to improve energy efficiency

Develop new & innovative technologies to create added values

Develop eco-friendly gas for processes that will replace refrigerant: expand best practice technologies to entire industry by 2030

Replace conventional power sources with low-carbon fuels (LNG, biomass, etc.)

Use waste heat and wastes: introduce more facilities using waste heat to produce steam

3. Buildings & Homes

Enhance energy efficiency standard- tighten building energy standards on insulation- amend relevant laws for certifying zero-energy buildings

Upgrade existing buildings and homes’ energy efficiency - require energy-intensive public buildings to change into green buildings- establish mid-to long-term plan for green remodeling- support planning and financing for retrofitting old buildings in private sector

Introduce energy information system and change consumption pattern- develop customized energy saving service- develop and monitor Building Energy Management System (BEMS)

4. Transportation

Promote low-carbon vehicles (incl. public transportation e.g electric bus, fuel-cell bus)* up to 3 million EVs by 2030, tighten greenhouse gas emission standards

Upgrade energy efficiency in marine transportation

Improve public transportation service+ expand inner and inter-city railways, BRT and improve transit system

Promote eco-drivingExpand low-carbon logistics+ e.g. modal shift from road to railway

5. Waste

waste reduction and recycling, minimize landfill, methan capture and use

6. Public sector

enhance energy saving target, replace with LED lighting, promote renewable energy

7. Agriculture

encourage low-carbon irrigation, low-methane feed

8. CCUS

early commercialization by promoting R&D and public-private pilot projects

Emission Trading Scheme

The Government set an emission cap for large GHG emitters (major companies) and

have them trade the surplus or deficit of emissions allowances in the market.

If marginal cost for the reduction is higher than the price of the allowance, a country

chooses purchasing of allowance over reduction efforts. This reduce the total

reduction cost for the society as a whole.

* 44∼68% less reduction costs in comparison with direct regulation (SERI, KEI, KEEI)

Subjects

Companies that have emitted 125,000 tons of GHGs or more at annual

average for the latest three years.

* GHGs to count : ① CO2 ② CH4 ③ N2O ④ HFCs ⑤ PFCs ⑥ SF6

Phases and duration

Operate with three-year phases for the initial implementation stage (up to 2nd

Phase) and introduce five-year phases thereafter (from 3rd Phase).

* 1st (2015~2017), 2nd (2018~2020), 3rd (2021~2025), 4th (2026~2030)

Program Content

GHG/EnergyTarget Management

Enterprises not eligible for the ETS but emitting 50,000 tons of GHGs or more and business sites with 15,000 tons or above are subject to the Target Management. The government set the GHG/energy reduction target for the individual companies and monitor the achievement.

Public SectorTarget Management

The central and local governments, public institutions and others in public sector are required to set an annual GHG reduction goal by 2020 and manage the implementation.

Carbon Point Households and commercial facilities are given cash value “ carbon points” for

reducing the consumption of energy, water, and city gas.

Green Credit Card Holders of Green Credit Card receives economic incentives (incl. cash points) for their green

consumer behaviors such as purchasing green products, using public transportation, and saving energy.

Necessity

▪ Even if we significantly reduce GHG emissions from now, the GHGs that has been emitted in the past will stay in the atmosphere for at least several decades and continue to warm the planet.

⇒ Beside the efforts to reduce GHGs, we need to adapt to the changed climate conditions.

Urgency

▪ Abnormal weather conditions become normal.(e.g. Heat waves occur all around the world in 2019)

▪ It would take time to evaluate the climate change impacts and vulnerability, develop appropriate measures based on the evaluation, and implement the measures to adapt to the change.

⇒ Adaptation is not a choice but a must!!

Cool Roof

Cooling Fog

Green Curtain

Support for vulnerable group

Establishment of the 2nd National Plan for Climate Change Response (∼2019.9)

Strategies Tasks

Transition to a

low-carbon

society

ㅇ Implement measures in eight areas to meet the national GHG reduction goal.

ㅇ Strengthen the role and responsibility of business sector including through emission allowance allocation

aligned to the national reduction goal.

ㅇ Build a transparent reduction monitoring/evaluation system.

Establishment of

national

adaptation

structure

ㅇ Enhance adaptation capacity in five key areas (land, water, ecosystem, agriculture/fishery, and health)

ㅇ Advance climate surveillance and forecasting and improve adaptation assessment.

ㅇ Mainstream adaptation in all areas and for all actors.

Reinforcement

of Response

Base

ㅇ Promote new technology and market of climate change response.

ㅇ Take a leading role in international efforts of climate change response.

ㅇ Raise public awareness of climate change and encourage low-carbon life style.

ㅇ Set institutions including organizations and governance.

Establishment of the 2nd National Plan for Climate Change Response (∼2019.9)

ㅇ Multi-ministerial implementation monitoring system on GHG reduction

- Allocate mitigation responsibilities among ministries and introduce an objective evaluation system for the

implementation.

- Each ministry is to set goals in their responsible part and manage the implementation.

ㅇ Review and Improvement of implementation

- An independent committee is to review the implementation indicators, monitor the performances, and

provide recommendation for improvement.

ㅇ Transparency, Timeliness, accountability, feedback and Improvement

- Analyze the consistency and correlation between performance and index and constantly adjust

implementation targets and develop policy tools.

Renew and submission of NDC (2020)

ㅇ Sufficient stakeholder discussions will be made for substantial changes while pursuing progress in the renewal.

2050 LEDS, Long-term low greenhouse gas emission development strategies (2020)

ㅇ In accordance with the Paris Agreement,

- (Article 4. 19) All Parties should strive to formulate and communicate long-term low greenhouse gas emission development strategies, ….

- (Decision 1. 36) Invites Parties to communicate, by 2020, to the secretariat mid-century, long-term low greenhouse gas emission development strategies in accordance with Article 4, paragraph 19, of the Agreement, ….

Low carbon economy and society Responsibility as a member of

the international community

Long-term vision of policies concerning energy and climate

Broader stakeholder engagement

Sustainable development for future generation

Towards a low-carbon future

ㅇ (Forum) Multi-stakeholders incl. experts, civil society and industry participate in

the forum to produce a shared 2050 GHGs reduction target and vision

Vision forum for transition to low-

carbon society

Public agenda for social consensus

Technical working group for 2050

LEDS

(Role) Produce 2050 national GHGs reduction target, vision and key tools

(Structure) Various stakeholders incl. experts, civil society, industry, etc.

(Period) Mar.~Dec. `19

(Activities) Hold occasional meetings for the entire forum and sub-group meetings

○ (Public Agenda) The draft 2050 LEDS is proposed as a public agenda, which is to

be explored and discussed by the general public for over 6 months through multiple

channels to reach a social consensus.

ㅇ (Technical Working Group) State-funded research institutes participate in the

group. They conduct technical analyses to propose specific scenarios to reduce

emissions in order to achieve the target suggested by the forum.

(Role) Develop scenarios for emission reduction and estimate potential reduction by 2050

based on the target set by the forum

(Structure) GIR and state-funded research institutes

(Period) Mar. ~Dec. `19

★ 2050 LEDS is to set a general direction which our society should head in. The target-setting process, therefore, should be inclusive and participatory that engages various stakeholders.

Ministry of Environment