Fair and Reasonable Action Fair and Reasonable Action : The Path Forward Equity and Global Climate Change Conference Mayflower Hotel, Washington, DC April , 2001 Dr. Jung-Sik Koh Ministry of Commerce, Industry and Energy Republic of Korea

Today’s World At a Glance Today’s World At a Glance Population : Wealth : Energy Consumption : CO 2 Emission : : Developed Countries(OECD, Former USSR & Eastern Europe) : NIEs (Korea, Taiwan, Singapore, HK, Brazil, Mexico) : Developing Countries (1998, %)

Four Factor Emission Model Four Factor Emission Model Xi : Country i’s CO 2 Emission Pi : Country i’s Population GDPi : Country i’s GDP Per Capita (US$/Capita) Ei : Country i’s Energy Intensity (toe/US$1,000) Ci : Country i’s Carbon Intensity (C-ton/toe)  i = 1 N X i = P i  GDP i  E i  C i

Per Capita GDP Per Capita GDP (’90 US$) DevelopedCountries NIEs DevelopingCountries WorldAverage 4,443

Per Capita Energy Consumption Per Capita Energy Consumption (TOE) DevelopedCountries NIEs DevelopingCountries WorldAverage 1.64

Per Capita CO 2 Emission Per Capita CO 2 Emission (C-TON) DevelopedCountries NIEs DevelopingCountries WorldAverage 1.05

Controllable Variables Controllable Variables  4 Population : , In the Long-run Const.  4 GDP :   E = f ( I, F, L, W, ) –  I : Industrial Structure ( – ) W Domestically Meaningful, Globally No Difference !  r F : Process & Equipment Efficiency (  )  r L : Standard of Living, Life Style (  ) – r W : Weather Condition ( – ) 4 C = f (Energy Mix)

Korea’s Efforts to Harmonize Energy, Korea’s Efforts to Harmonize Energy, Economy and Environment Economy and Environment 4 Energy Project Special Account : A Firm Commitment to Cope with the Real Issues of Global Warming  Import surcharges on petroleum and LNG  Sales surcharges on Kerosene  Safety management surcharges on LNG and LPG  Import surcharges on petroleum and LNG  Sales surcharges on Kerosene  Safety management surcharges on LNG and LPG  Promotion of LNG  Energy Conservation  Energy Technology R&D and NRSE Development  Phasing-out of the Anthracite Coal Mines  Others  Promotion of LNG  Energy Conservation  Energy Technology R&D and NRSE Development  Phasing-out of the Anthracite Coal Mines  Others RevenueRevenueExpenditureExpenditure

Budget of Energy Project Special Account Budget of Energy Project Special Account (Uint : Bil. Won) * Exchange Rate KW/US$ : 951(1997), 1,194(1999), 1,131(2000)

Major Achievements in Energy Sector Major Achievements in Energy Sector 4 Voluntary Agreement : Majority of Korean Firms. 4 Financial Assistance : Loan & Tax Benefit 4 Energy Efficiency Regulation : Appliances, Vehicles, Buildings 4 Citizens’ Alliance for Energy Conservation : Major NGOs 4 District Heating : 1 Million Households : Energy Conservation and Efficiency Enhancement : Energy Conservation and Efficiency Enhancement

CO 2 Reduction Plan of VA Participants in Korea CO 2 Reduction Plan of VA Participants in Korea

Major Achievements in Energy Sector Major Achievements in Energy Sector : Achieving a Less Carbon Intensive Energy Mix : Achieving a Less Carbon Intensive Energy Mix Energy Consumption Trend by Source

Primary Energy Consumption by Source

US OECDAverage 0.64 Denmark Japan Korea FranceChina Comparision of Carbon Intensity Intensity

Energy Technology R&D and NRSE  To reduce total energy consumption by 10%  To supply 3% of TPEC from NRSE  To develop clean fossil fuel technology  To reduce total energy consumption by 10%  To supply 3% of TPEC from NRSE  To develop clean fossil fuel technology Goals by The 10-year Energy Technology R&D Plan ( ) 4 The New NRSE Promotion Plan ( ) r To Supply 2% of TPEC by Compulsory Installment, Green Pricing

Perspective to Fair and Reasonable Action  Ultimate Per Capita Equity  Flexible, Self-Determined Stabilization Path  Base Year, Target Year  Freezing Around Current Level Impossible  Growth Target should be Allowed  Recommended by J.S. Koh : Jung-Sik Koh, “ Global Warming Related Carbon Dioxide Abatement Proposals”, J.Environ. Sci. (China), 1993, Vol. 5 No. 3, pp269~78.  Ultimate Per Capita Equity  Flexible, Self-Determined Stabilization Path  Base Year, Target Year  Freezing Around Current Level Impossible  Growth Target should be Allowed  Recommended by J.S. Koh : Jung-Sik Koh, “ Global Warming Related Carbon Dioxide Abatement Proposals”, J.Environ. Sci. (China), 1993, Vol. 5 No. 3, pp269~78. Three Principles  Zero Emission Transportation Energy : A Must  Enhanced Role of Nuclear Energy : Necessary Evil (?)  Add-On CO 2 Conversion Tech. For Coal Facilities: A Must  Zero Emission Transportation Energy : A Must  Enhanced Role of Nuclear Energy : Necessary Evil (?)  Add-On CO 2 Conversion Tech. For Coal Facilities: A Must Three Implications

Suggestions Suggestions 9 Sequestration quota might be allocated to the developed countries according to historical responsibilities 9 It’s time to answer for the role of nuclear energy under the constraints of global warming 9 Carbon Intensity could be a practical criterion to make fair and reasonable action for the whole world : Ratchet Clause for the Carbon Intensity