Transcript Tackling the Economic and Climate Crisis Together

Tackling the Economic and
Climate Crisis Together !
May 7, 2009
Dr. Jeong-Woo Kil
JoongAng m&b
At the G-20 meetings…
• Economic recovery efforts monopolize
national agendas with promising to
strain state budget.
• Policymakers seek
- to generate short-term economic
growth and employment,
- to address long-term goals sidelined
by the current crisis.
Energy & Environment: ‘Green’
Stimulus
• “Green” stimulus gained considerable attention
around the world.
• Japan and South Korea trumpeted their stimulus
plans as “Green New Deals.”
• China earmarked $586 billion in spending for
energy and environmental projects.
• The United Kingdom and Germany followed.
• The US Congress is looking to green $50 to $100
billion of a proposed $ 825 billion package.
Assessing the Green Stimulus
Effect
• To assess the cumulative effect of
economic recovery package on global
carbon dioxide emission;
• To ensure Green Stimulus efforts
complement each other and long-term
emission reduction goals as well.
Framework for Evaluating
Effectiveness of Green Stimulus plans.
- Economically, it is a question of speed
and scope; how quickly and how
broadly the money is put to work.
- Environmentally, it is about strategic
design.
Green Stimulus…Some
Arguments
• Green components of a recovery effort can
create jobs and stimulate the economy.
• A Green Stimulus is no replacement for climate
and energy policy.
• Green recovery package can reduce the cost of
comprehensive climate and energy policy.
• Internationally, the response to the economic
crisis is an opportunity to lay the foundation
for, and build confidence in, a multilateral
approach to the climate crisis.
Groundwork to address Climate
Change
1. Keeping clean energy momentum alive
• The cost of climate policy depends in large
part on how fast low-carbon energy sources
are developed today.
• The credit crisis and collapsing oil prices
threaten this momentum.
• Making policy incentives meaningful through
loan guarantee or greater tax credit flexibility
can help keep the renewable industry on
track.
2. Laying the foundation for future low-carbon
growth
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•
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The ability of market-based climate policy to
move the global economy onto a low-carbon
trajectory will depend on infrastructure.
Infrastructure investments can begin today
as part of an economic recovery effort.
Low-carbon investments must be balanced
against non-green infrastructure projects.
3. Energy efficiency, rather easy pick
• The most promising area for green stimulus
spending, in terms of both economic and
environmental benefit, is energy efficiency.
• A number of low-cost or even profitable
opportunities to reduce carbon dioxide
emissions that will likely not respond to
price-based climate tools alone.
Common commitment on a more
environmentally sustainable footing
will help build confidence in climate
negotiations later this year.
That’s why we should tackle the
economic and climate crisis
together.
Climate Change vs.
Trade Liberalization
Trade-related rules have gained political
support,
- they address the competitiveness issue
- they arguably create incentives for
other countries to join in combating
global warming.
But the Reality is…
• First, trade measures may not provide
intended economic relief to domestic
industries;
• Second, trade measures may not create
substantial leverage to shape climate
change policies of other countries…
particularly China and India.
Collision with WTO Rules
When Green House Gas trade measures
are mixed with mechanisms designed to
alleviate the burden of emission controls
on domestic firms, the possibility arises
of a collision with WTO rules.
Korea’s Cases
• Presidential Commission for Green
Growth is leading…
• Green + New Deal = explore growth
potential & creating jobs= (low carbon
dioxide+ environment friendly+ energy
conservation)..
• Green Growth Strategy + job creation
= Green New Deal
Civic Activities
• Korea’s Green Fund runs the Climate
Change Center;
• Educational programs targeting CEOs…
• Another move is organizing the Club to
donate one out of ten thousands of the
company’s annual revenue for environmental protection programs, currently
around 150 companies joined.