Description
The PPT describes about UN Framework Convention on Climate Change.
Change in Climate Patterns have massive effects on our society
? Livelihood of the majority is rooted in the land and
dependent on the vagaries of weather. ? Water is already scarcer as the Himalayan glaciers continue to dissipate at abnormal rates. ? Forest and plant cover will decline, along with food production. ? Our coastal and delta floodplains are affected by rising seas, the citizens who live there will risk massscale displacement, fleeing to uor already overpopulated cities.
1. Recent Trend in Global Climate Change Convention
? The 15th UN Climate Summit was held in
Copenhagen, Denmark, in December ? Concrete measures were discussed on how to tackle climate change after the Kyoto Protocol expires in 2012, although no consensus was reached ? Efforts of a few countries alone will be insufficient ? Pan-global system that would commit large greenhouse gas-emitters such as the US and China to mandatory reductions
Change on Korea
? The efforts to address climate change can be
summarized into three themes: 1. Stronger multilateral cooperation 2. The emergence of Green Protectionism 3. Regulations on corporate greenhouse gas emissions.
1. Strengthening Multilateral Cooperation on Climate Change
? US and Europe competing to secure a leading position
in efforts to address climate change ? EU is strengthening penalties on countries that fail to meet agreed upon mandatory emission reductions ? The EU is adopting a “self-punishment” system where underachievers are faced with heavier penalties. ? Korea, the sixth largest emitter of CO2 among OECD countries, is highly likely to be designated a mandatory emission reduction country under the next agreement on climate change
Trade Losses from Stronger Green Protectionism
? Adoption of Trade Sanctions through Tariff
Adjustment :? Green Protectionism is expected to be strengthened against
countries without mandatory emission reduction requirements, including the imposition of taxes on goods imported from such countries.
? EU is considering creating border taxes as a measure to maintain the
competitiveness of its own industries. In response, the US is also considering such a border tax. ? Korea is expected to see an estimated US$4.3 billion drop in exports due to its failure to voluntarily reduce its greenhouse gas emissions.
Trade Losses from Stronger Green Protectionism
? Stronger Non-Tariff Trade Barriers
? Advanced countries are planning to implement indirect trade sanctions
on CO2 emission limits for automobiles (i.e., fuel efficiency regulation). For instance, the US has recently introduced its “gas guzzler tax” while France has implemented its “Bonus-Minus” system.
? With the adoption of “carbon footprint” system, non tariff barriers
are expected to be further strengthened. The system calculates the amount of CO2 emissions, covering everything from raw materials procurement, manufacturing, transportation and eventual disposal. ? Demand for exported finished goods that are labeled with high CO2 emissions will likely decrease..
Trade Losses from Stronger Green Protectionism
? Increasing Corporate Burden from tightened regulation on
Greenhouse Gas Emission :-
? The impact that greenhouse gas emissions have on corporate asset values is
forecast to increase due to the spread of the Carbon Disclosure Project (CDP) ? CDP collects data on greenhouse gas emissions, reduction targets and future strategies. Such information can affect global financial institutions and institutional investors’ valuation of companies and their investment decisions. ? Korea is likely to be at a disadvantage in terms of these corporate value assessments because of its low disclosure of emission rates and infrequent auditing. ? In particular, the country’s rate of auditing by outside parties (13.3%) is much lower than the share of companies that disclosed emission data (66.7%), thus giving the impression that its institutional groundwork related to measuring greenhouse gases is relatively weak while rust in companies is relatively low.
Government and Companies
? Government Strategy: Actively Join Global Response
to Climate Change:? Korea must build National Consensus on investing for future by
presenting clear basis for the need to pay short term costs in return for mid- to long-term returns regarding climate change. ? Close cooperation among the government, academia and civil society. To deepen awareness and achieve consensus, Korea must hold climate change conferences where related experts, central and municipal governments, industry leaders and civic groups from home and abroad gather together for discussion annually
Government and Companies
? Need to Act Preemptively on Expansion of Low Carbon
Market:? Securing technology, forming domestic markets and securing the
global competitiveness of Korean companies ? To this end, the government should support the entrance of green growth-related companies into overseas markets by implementing massive empirical projects, which would help them secure a sufficient operational track record at home. ? It should also form a single administrative channel that minimizes regulatory costs necessary to build green industry complexes.
Government and Companies
? Urgent Need to Overhaul Domestic Legal System:1) The policy implementation structure for green growth 2) Institutional measures to cut greenhouse gas emissions 3) Financial support for green companies The industrial sector is against the system out of concern for a possible weakening in the competitiveness of energy-intensive sectors (i.e. Korea’s export industries: automobile, shipbuilding, steel)
Conduct Green Management
? “Green Management” to Cope with Global Regulations
? Strategies to secure cost-effective emissions rights should be
established in order to ensure price competitiveness. ? Also, companies should prevent corporate value from deteriorating by fully preparing for CDP and regularly publishing sustainable reports.
Conduct Green Management
? 2) Preemptively Cope with Low Carbon Sector:? Companies should continuously invest in developing green
? ? ? ? ? ?
technologies in order to capitalize on the expansion of a low carbon market and cut the costs incurred in meeting carbon reduction targets. By adopting a “carbon advantage” mode of thinking, they should create new investment opportunities. To secure generation of green technologies, strategies such as M&A, Joint studies, Strategic alliances and Vertical integration of materials and manufacturing industries in the value chain should be pursued.
Four reasons the Copenhagen summit failed
? The confrontation between the West and emerging
countries ? No-one pushing the negotiations forward ? The future of the Kyoto protocol Signed in 1997, it sets fines for the participating countries that don’t respect their commitments. The Copenhagen conference was to find an agreement to succeed to the Kyoto Protocol that comes to an end in 2012. ? A badly organized conference
?THANK YOU
doc_164504210.pptx
The PPT describes about UN Framework Convention on Climate Change.
Change in Climate Patterns have massive effects on our society
? Livelihood of the majority is rooted in the land and
dependent on the vagaries of weather. ? Water is already scarcer as the Himalayan glaciers continue to dissipate at abnormal rates. ? Forest and plant cover will decline, along with food production. ? Our coastal and delta floodplains are affected by rising seas, the citizens who live there will risk massscale displacement, fleeing to uor already overpopulated cities.
1. Recent Trend in Global Climate Change Convention
? The 15th UN Climate Summit was held in
Copenhagen, Denmark, in December ? Concrete measures were discussed on how to tackle climate change after the Kyoto Protocol expires in 2012, although no consensus was reached ? Efforts of a few countries alone will be insufficient ? Pan-global system that would commit large greenhouse gas-emitters such as the US and China to mandatory reductions
Change on Korea
? The efforts to address climate change can be
summarized into three themes: 1. Stronger multilateral cooperation 2. The emergence of Green Protectionism 3. Regulations on corporate greenhouse gas emissions.
1. Strengthening Multilateral Cooperation on Climate Change
? US and Europe competing to secure a leading position
in efforts to address climate change ? EU is strengthening penalties on countries that fail to meet agreed upon mandatory emission reductions ? The EU is adopting a “self-punishment” system where underachievers are faced with heavier penalties. ? Korea, the sixth largest emitter of CO2 among OECD countries, is highly likely to be designated a mandatory emission reduction country under the next agreement on climate change
Trade Losses from Stronger Green Protectionism
? Adoption of Trade Sanctions through Tariff
Adjustment :? Green Protectionism is expected to be strengthened against
countries without mandatory emission reduction requirements, including the imposition of taxes on goods imported from such countries.
? EU is considering creating border taxes as a measure to maintain the
competitiveness of its own industries. In response, the US is also considering such a border tax. ? Korea is expected to see an estimated US$4.3 billion drop in exports due to its failure to voluntarily reduce its greenhouse gas emissions.
Trade Losses from Stronger Green Protectionism
? Stronger Non-Tariff Trade Barriers
? Advanced countries are planning to implement indirect trade sanctions
on CO2 emission limits for automobiles (i.e., fuel efficiency regulation). For instance, the US has recently introduced its “gas guzzler tax” while France has implemented its “Bonus-Minus” system.
? With the adoption of “carbon footprint” system, non tariff barriers
are expected to be further strengthened. The system calculates the amount of CO2 emissions, covering everything from raw materials procurement, manufacturing, transportation and eventual disposal. ? Demand for exported finished goods that are labeled with high CO2 emissions will likely decrease..
Trade Losses from Stronger Green Protectionism
? Increasing Corporate Burden from tightened regulation on
Greenhouse Gas Emission :-
? The impact that greenhouse gas emissions have on corporate asset values is
forecast to increase due to the spread of the Carbon Disclosure Project (CDP) ? CDP collects data on greenhouse gas emissions, reduction targets and future strategies. Such information can affect global financial institutions and institutional investors’ valuation of companies and their investment decisions. ? Korea is likely to be at a disadvantage in terms of these corporate value assessments because of its low disclosure of emission rates and infrequent auditing. ? In particular, the country’s rate of auditing by outside parties (13.3%) is much lower than the share of companies that disclosed emission data (66.7%), thus giving the impression that its institutional groundwork related to measuring greenhouse gases is relatively weak while rust in companies is relatively low.
Government and Companies
? Government Strategy: Actively Join Global Response
to Climate Change:? Korea must build National Consensus on investing for future by
presenting clear basis for the need to pay short term costs in return for mid- to long-term returns regarding climate change. ? Close cooperation among the government, academia and civil society. To deepen awareness and achieve consensus, Korea must hold climate change conferences where related experts, central and municipal governments, industry leaders and civic groups from home and abroad gather together for discussion annually
Government and Companies
? Need to Act Preemptively on Expansion of Low Carbon
Market:? Securing technology, forming domestic markets and securing the
global competitiveness of Korean companies ? To this end, the government should support the entrance of green growth-related companies into overseas markets by implementing massive empirical projects, which would help them secure a sufficient operational track record at home. ? It should also form a single administrative channel that minimizes regulatory costs necessary to build green industry complexes.
Government and Companies
? Urgent Need to Overhaul Domestic Legal System:1) The policy implementation structure for green growth 2) Institutional measures to cut greenhouse gas emissions 3) Financial support for green companies The industrial sector is against the system out of concern for a possible weakening in the competitiveness of energy-intensive sectors (i.e. Korea’s export industries: automobile, shipbuilding, steel)
Conduct Green Management
? “Green Management” to Cope with Global Regulations
? Strategies to secure cost-effective emissions rights should be
established in order to ensure price competitiveness. ? Also, companies should prevent corporate value from deteriorating by fully preparing for CDP and regularly publishing sustainable reports.
Conduct Green Management
? 2) Preemptively Cope with Low Carbon Sector:? Companies should continuously invest in developing green
? ? ? ? ? ?
technologies in order to capitalize on the expansion of a low carbon market and cut the costs incurred in meeting carbon reduction targets. By adopting a “carbon advantage” mode of thinking, they should create new investment opportunities. To secure generation of green technologies, strategies such as M&A, Joint studies, Strategic alliances and Vertical integration of materials and manufacturing industries in the value chain should be pursued.
Four reasons the Copenhagen summit failed
? The confrontation between the West and emerging
countries ? No-one pushing the negotiations forward ? The future of the Kyoto protocol Signed in 1997, it sets fines for the participating countries that don’t respect their commitments. The Copenhagen conference was to find an agreement to succeed to the Kyoto Protocol that comes to an end in 2012. ? A badly organized conference
?THANK YOU
doc_164504210.pptx