OECD Publishes Review of Republic of Korea’s Green Growth Strategy

July 2010: The Organisation for Economic Co-operation and Development (OECD) has released a working paper titled “Korea's Green Growth Strategy: Mitigating Climate Change and Developing New Growth Engines,” which assesses the Republic of Korea's strategies to reduce its carbon emissions by 30% by 2020.

The working paper bases its discussion on the Republic of Korea's 2009 National Strategy for Green Growth, which aims to create synergies between economic growth and environmental protection. The paper makes a series of recommendations based on three areas that Korea has targeted for promoting green growth. On the goal of mitigating climate change, the paper recommends, inter alia: introducing market-based mechanisms as soon as possible; putting a price on carbon through the creation of a cap-and trade system; and phasing out environmentally harmful energy subsidies.

On creating new engines for green growth, recommendations include: ensuring the proper framework conditions to facilitate entry of new firms and exit of firms in declining industries; training workers to facilitate the transition to a greener economy; and increasing the public share of research and development. On improving quality of life through a better environment, it recommends, inter alia: gradually reducing emissions permitted under the cap-and-trade system; and increasing average fuel efficiency standards. [The Working Paper]