Net Zero Governance - The case of Korea

2022 ProSPER.Net Leadership Programme – Shifting to Net Zero

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We are a government-funded policy research institute
that tackles green growth challenges and climate crisis with green technologies.
We bridge science, policy and decision-making
to develop green solutions and facilitate climate actions.

October 28, 13:00-16:30, CIPSEM Course on Soil and Land Resources for SD
UNEP 2016
✓ The Paris Agreement’s aims of limiting global warming to well below 2ºC and pursuing efforts towards 1.5ºC (IPCC 2018), and
submission of 164 NDCs representing all 191 Parties (UNFCCC 2021)
<Projected range and progression of emission levels>
Source: NDCs under the Paris Agreement (UNFCCC 2021)
NDCs as at 30 July 2021
Progression
INDCs as at 4 April 2016
<Net-zero emissions race (as of October 17 2021>
Source: Energy &
Climate Intelligence
Unit
https://eciu.net/netzerotracker
02

✓ ‘Current levels of climate ambition are NOT on track to meet our Paris Agreement goals.’ (Patricia Espinosa, Executive Secretary of
UN Climate Change)
Source: A government roadmap for addressing the climate and post COVID-19 economic crises (Climate
Action Tracker 2020)
<Emissions gap in 2030>
Source: Emissions gap report 2020 (UNEP 2020)
03

▪ Green spending: spending with a likely positive environmental impact
→ During COVID-19 pandemic: one-sixth of the green spending responding to 2008-09 financial crisis
→ Green recovery not only initiates significant emissions reduction but creates economic growth
<Growth in CO2 emissions after the 2008-09 financial crisis>
Source: Glen et al. 2012
<Green investments and job creation - jobs created per $1 million>
Source: IEA 2020
https://recovery.smithschool.ox.ac.uk/tracking/
04

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• Coordination among many government/nongovernment actors (coordination bodies to facilitate the complex task of
aligning climate action across state and non-state actors)
• Climate change framework legislation to help address the challenge of credible commitment by establishing legally
binding targets
• Independent climate advisory bodies to strengthen the evidence base for climate policy and help align policy with long-
term goals
• Planning, budgeting, public investment, procurement, and intergovernmental fiscal systems to align public resources with
climate policies
• Strengthened governance of state-owned enterprises to create incentives for climate action in key sectors such as energy,
transport, and water
• Stakeholder engagement to help hold the government accountable for its climate commitments

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a. Policy level: Develop and update existing legislation for carbon neutrality at national level across all sectors of government
for all relevant ministries to implement via a multi-stakeholder governing body
b. Technical level: Capacity building likely necessary for ministries and different stakeholders within governing body to
understand low-carbon and carbon neutral initiatives available to them
c. Implementation level: Create implementation mechanism for low-carbon and carbon neutral initiatives at national, sub-
national, and local level with appropriate financial and capacity-building resources for implementation teams at various levels

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Target
1.) Develop a carbon
neutrality framework for
governance that works with
legislative packages,
budgets, and
implementation across all
sectors and scales of
society
Sub-Targets
1.1) Develop and update legislation for carbon
neutrality at the national level for ministries to
implement
1.2) Create a governing body for carbon
neutrality with representation from all
government ministries, as well as other
stakeholders
1.3) Create funding schemes for budgets to
implement low-carbon and carbon-neutral
policies
1.4) Create implementation mechanisms for
low-carbon and carbon-neutral initiatives at
national, sub-national, and local levels with
appropriate financial and capacity-building
resources for implementation teams at
various levels
Indicators
1.1.1) Number of new policies implemented for carbon-neutrality
1.1.2) Number of existing policies updated for carbon neutrality
1.2.1) Number of different ministries represented on governing body
1.2.2) Number of other stakeholder groups represented on governing
body
1.3.1) Total amount of funds set aside for carbon neutrality
1.4.1) Number of carbon neutral initiatives operating at national level
1.4.2) Number of carbon neutral initiatives operating at sub-national level
1.4.3) Number of carbon neutral initiatives operating at local level

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• All three countries have a proactive and comprehensive approach to net zero greenhouse gas emissions emanating from the
three countries’ central governments
Korea Costa Rica Japan
• Led by comprehensive inter-
ministerial coordination and
communication
• 2050 Carbon Neutrality Committee,
which is co-chaired by the Prime
Minister and includes 18 ministers
• Policy formulation and
implementation by the relevant
ministries, while monitoring and
assessment by the Ministry of
Environment
• Led by the leadership of the Ministry
of Environment and Energy (Director
of Climate Change) under the
directive of the Costa Rican president
• Citizen Consulting Council on Climate
Change
• Scientific Council on Climate Change
• Led by comprehensive inter-
ministerial coordination and
communication
• SDGs Promotion Headquarters, which
is led by the Prime Minister and
includes all of the heads of the
nation’s ministries
• Policy formulation and
implementation by the relevant
ministries, while monitoring and
assessment by the Ministry of
Environment

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▪ Both Korea and Japan have large (post)industrial economies, and as such these more diverse economic sectors require different
approaches for net-zero emissions policies and implementation strategies from different ministries
▪ For larger (post)industrial nations where multiple economic sectors require attention for effective decarbonization, the South Korean
and Japanese styles of governance would likely prove more effective.
▪ Costa Rica’s highly centralized approach to policy formulation and implementation around the MoEE seems to work well for a
country where the economy’s largest source of emissions has been from a single source historically – in this case, deforestation
▪ Since deforestation has been the driving force behind carbon emissions within the nation for decades, For larger (post)industrial
nations where multiple economic sectors require attention for effective decarbonization, the South Korean and Japanese styles of
governance would likely prove more effective.

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• Korea has experienced remarkable economic growth, which can be characterized as an energy-intensive model primarily
dependent on fossil fuel-based industries such as the steel, automotive, shipbuilding, and petrochemical sectors
<Climate change impacts in Korea for the past 100 years>
Source: National Institute of Meteorological Sciences 2018

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• Concerning high fossil fuel dependence, Korea’s greenhouse gas (GHG) emissions rose almost twofold between 1990 and
2005, recording the highest growth rate in the OECD area
<National trend of GHG emissions and removals by sector in Korea (1990-2019)>
Source: GIR 2022
The energy sector has the highest emissions of 611.5 MtCO2eq
(87.2%) in 2019, followed by the industrial processing sector (2.0
MtCO2eq, 7.4%), agricultural sector (21.0 tCO2eq, 3.0%), and
waste sector (16.9 MtCO2eq, 2.4%). The energy sector
contributed the most to the reduction in emissions in 2019,
which decreased by 21.1 MtCO2eq, 3.3% compared to the
previous year, and mainly decreased in public electricity and heat
production and residential buildings

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• 2050 Carbon Neutrality and Green Growth Committee (1/4)
Source: 2050 Carbon Neutrality and Green Growth Committee
Chairperson Prime Minister, Civilian Co-chairperson
Members Ex-officio government members (21 people) + President-appointed civilian commission members (32 people)
Term Two years (one consecutive term permitted)
Function
• Review* of major policies and plans for implementing carbon neutrality
• Assessment and follow-up on the implementation plans
• Public relations
* National strategies, main directions for pushing forward carbon neutrality policies, climate change response, research and development,
manpower training and industry promotion

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Source: Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis
Section Details
Article 15. Establishment of the 2050 Committee
 Comprised of at least 50 but not exceeding 100 members, including two chairpersons
 Co-chaired by Prime Minister and the other appointed by the President
 Committee members composed of key Ministers and experts related to carbon neutrality
Article 16. Functions
The Committee deliberates and decides on the matters including:
 Policy directions
 Setting of national vision, mid- to long-term reduction targets
 Development and revision of the national strategy and mater plan
 Inspection of the implementation progress
 Direction on the distribution and utilization of financial resources
 Research and development, capacity building, public awareness, and communication
Article 19. Establishment of subcommittees
 The Committee may have subcommittees (or special committees) comprised of Committee members
 Each subcommittee may have expert committees for review
Article 20. Investigation and opinion hearing
The 2050 Committee may request or investigate the followings:
 A request for data and documents to the Ministers
 On-site investigation
 Ministers may request public officials and experts to attend the 2050 Committee for statement and data submission
Article 21. Secretariat The Secretariat shall be established, consisting of the secretary general and public officials

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Sub-committee Key responsibilities
Greenhouse Gas Reduction
• Establishment and implementation of mid-to-long-term greenhouse gas reduction goals
• Comprehensive greenhouse gas reduction policies such as emission trading systems
• Greenhouse gas reduction policies in areas of buildings, transportation, waste, sinks, and agriculture, livestock, and fisheries
Energy and Industry Transition
• Review of energy mix
• National policies and plans related to energy and industry sectors
• Greenhouse gas reductions in the areas of energy transition, industry, and hydrogen
Just Transition and Climate Change
Adaptation
• Support for local government's initiatives on carbon neutrality
• Policies for climate prediction and adaptation
• Policies for the just transition and sustainability
• Carbon neutrality education and cultivation of human resources
• Social campaign for and public participation in carbon neutrality initiatives
Green Growth and
International Cooperation
• Promotion and support for green economy and green industry
• Policy coordination and support for finance related to climate crisis response
• Support for establishing national strategies of R&D for green technology
• International cooperation and global reduction

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Ministry Key department Key role and responsibility
Ministry of
Environment (MOE)
Director General of
Climate Change
[Division of Climate Strategy]
 Establishes and revises legislation related to climate change
 Sets GHG emissions targets
 Evaluates the national and local implementation of GHG emissions reduction
 Establishes mid- to long-term low carbon and reduction strategy
[Division of Climate Economy]
 Establishes and revises legislation related to the emissions trading system
 Establishes the master plan on the allocation and trading of emission permits
 Establishes and revises guidelines related to GHG and energy target management and integration
 Designates measurement and monitoring institutions on GHG emissions and energy consumption
Greenhouse Gas
Inventory and
Research Center
(GIR)
 Prepares national GHG statistics every year, publishes them through analysis and verification, and establishes a Management Plan for the
National GHG Inventory every five years
 Operates National GHGs Management System (NGMS) that manages emissions and emission trading volumes of individual business sites
 Supports the establishment of Long-term low greenhouse gas Emission Development Strategies (LEDS) scenarios
 Educates and promotes information related to GHG inventory and reduction policies at domestic and abroad, as well as transferring related
knowledge to developing countries

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Ministry of Trade,
Industry, and
Energy (MOTIE)
Director General of
Energy Transition
Policy
[Division of Energy Policy]
 Establishes and implements the master plan for the energy
 Synthesizes and coordinates the national budget for the energy policy
 Operates energy price policy and system
 Develops and manages domestic and international energy supply and demand statistics
[GHG Emissions Reduction Team]
 Establishes and coordinates the master plan and policy related to GHG emissions reduction in the energy and industrial sector
 Improves fiscal and tax support and system for GHG emissions reduction in the energy and industrial sector
Director General of
Renewable Energy
 Establishes and implements the policy related to eco-friendly and sustainable energy, and renewable energy industry
 Directs and coordinates the development, utilization, and deployment of renewable energy technology for industrial upgrading
 Modifies, operates, and improves legislation on renewable energy
 Designates and nurtures university and R&D center specialized in renewable energy
 Develops and supports mid- to long-term renewable energy project

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Ministry of
Economy and
Finance (MOEF)
Department of
Long-term Strategy
[Division of Climate Change Response Strategy]
 Consults and coordinates the matters related to mid- to long-term national and sectoral GHG emissions reduction targets
 Consults and coordinates key policies on emissions trading system
 Establishes and coordinates the policy on the management and operation of the Climate Response Fund
 Researches and improves the fiscal policy related to carbon neutrality
 Consults and coordinates the mid- to long-term fiscal policy on carbon neutrality
Department of
Development
Finance
[Division of Green Climate Planning]
 Directs and coordinates the matters on the climate finance and Green Climate Fund (GCF)
 Serves as a National Designated Authority (NDA) of the United Nations Framework Convention on Climate Change (UNFCCC) for the interface
between Korea and the GCF, provides broad strategic oversight of the GCF’s activities in the country, and communicates the country’s priorities
for financing low-emission and climate-resilient development

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Ministry of
Science and ICT
(MSIT)
Director General of
Basic Original
Research
 Develops mid- to long-term national R&D plan and project related to the MSIT
 Operates international cooperation on the development and transfer of climate technology responding to climate change
 Develops mid- to the long-term master plan on the development of original technology related to the MSIT
 Operates and improves legislation related to the development of original technology about the MSIT
 Establishes and implements the implementation plan for the development project original technology related to the MSIT
 Serves as a National Designated Entity (NDE) of the UNFCCC for the development and transfer of climate technologies and acts as a focal
point for interacting with the Climate Technology Centre and Network (CTCN) under UNFCCC.
Ministry of Foreign
Affairs (MOFA)
Department of
Foreign Affairs on
Climate Change
and Environmental
Science
[Division of Foreign Affairs on Climate Change]
 Develops, implements, and coordinates the foreign policy on climate change cooperation, including matters on the GCF, Global Green Growth
Institute (GGGI), and P4G Partnerships
 Serves as a national focal point of the UNFCCC for the submission of the NDC and LEDS
Ambassador for
Climate Change
 Secures the national interests through follow-up negotiations and international cooperation for the implementation of the Paris Agreement

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Korea
Meteorological
Administration
(KMA)
Department of
Climate Science
 Establishes, synthesizes, and coordinates the policy related to climate change
 Coordinates international cooperation related to climate change, including the Intergovernmental Panel on Climate Change (IPCC) and the
Group on Earth Observations (GEO)
 Establishes and coordinates the policy related to climate change scenario
National Institute
of Meteorological
Sciences
 Develops climate change scenario production system and study on climate process
 Assesses global/regional/national climate projection and development of climate information to support national climate change policy
Korea Forest
Service (KFS)
Department of
Forest Industry
Policy
 Develops and implements forestry policy, including carbon forestry
 Establishes and implements the master plan for national forestry
National Institute
of Forest Science
 Operates the Carbon Neutrality Research Center for the forecast of GHG absorption in the forest sector, wood product carbon account
calculation, researches on the activation of the forest carbon offset system

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Ministry Plan and Act
Ministry of Environment (MOE)
National Framework Plan for Carbon Neutrality and Green Growth
pursuant to Article 10.1 of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis
Ministry of Trade, Industry, and Energy (MOTIE)
Master Plan for Electricity Supply and Demand
pursuant to Article 25.1 of the Electric Utility Act
Ministry of Land, Infrastructure, and Transport (MOLIT)
Comprehensive National Land Plan
pursuant to Article 9.1 of the Framework Act on the National Land
Office for Government Policy Coordination
Framework Strategy for Sustainable Development
pursuant to Article 7 of the Framework Act on Sustainable Development
Master Plan for the Promotion of the Development, Use, and Diffusion of New and Renewable Energy
pursuant to Article 5.1 of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy
Master Plan for National Core Transport Network
pursuant to Article 4.1 of the National Transport System Efficiency Act
Master Plan for Implementing the Hydrogen Economy
pursuant to Article 5.1 of the Hydrogen Economy Promotion and Hydrogen Safety Management Act
Ministry of Agriculture, Food and Rural Affairs (MAFRA)
Framework Plan to Develop Agriculture, Rural Communities, and Food Industry
pursuant to Article 14.1 of the Framework Act on Agriculture, Rural Community, and Food Industry
Ministry of Environment (MOE)
Framework Plan for Resources Circulation
pursuant to Article 11.1 of the Framework Act on Resources Circulation
Master Plan for Green Building
pursuant to Article 6.1 of the Green Building Construction Support Act
Korea Forest Service (KFS)
Comprehensive Plan for the Management and Improvement of Carbon Sink
pursuant to Article 5.1 of the Act on the Management and Improvement of Carbon Sink

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• Public institutions are expected to cooperate with carbon-neutral policy measures taken by national and local governments.
• The private sector is expected to minimize GHG emissions while simultaneously investing in green technology and green industries.
• Citizens are expected to support “green life” campaigns targeted at them by both the national and local government. Within each carbon
neutral initiative, it is often the work of the implementing government agency to do a comprehensive stakeholder engagement at either the
national or the local level.

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1. Condition for participation
- Residential buildings and complexes and commercial buildings that have a meter with a unique number
2. Participant
- (Individual) Household, business
- (Complex) Apartment complex composing more than 150 households, public school
3. Carbon point and incentive
- (Carbon point) Energy items used in homes or complexes (electricity, water, and gas) are compared to the average monthly usage over the past one or two years,
and carbon points are calculated based on the savings rate
- (Incentive) Payment in June and December in cash, voucher, Green Card point, local cash, etc. (1 point=1 KWR)

Net Zero Governance - The case of Korea

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