1. Fair and Reasonable Action Fair and Reasonable Action : The Path Forward Equity and Global Climate Change Conference Mayflower Hotel, Washington, DC April 17 - 18, 2001 Dr. Jung-Sik Koh Ministry of Commerce, Industry and Energy Republic of Korea

2. 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 22.4 5.8 71.2 79.4 6.7 13.8 60.6 6.3 33.1 61.2 5.9 32.9 (1998, %)

3. 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

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

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

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

7. 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)

8. 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

9. 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)

10. 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

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

12. 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

13. Primary Energy Consumption by Source 1980 2000

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

15. 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 2006 4 The 10-year Energy Technology R&D Plan (1999 - 2006) 4 The New NRSE Promotion Plan (2001-2003) r To Supply 2% of TPEC by 2003 - Compulsory Installment, Green Pricing

16. 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

17. 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