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International Cooperation and

Promotion of Exports of Environmental Goods and Services

in the Republic of Korea

July 19, 2018

IX ECLAC Seminar on Trade and Sustainability : International Trade as a Potential driver for Sustainable Development

Analysis of Korean’s exports performances of environmental friendly products

since 2000 by main destination of Latin America and the Caribbean

Contents

The Korean government’s policy to promote the exports of environmentally

friendly goods

International environmental cooperation and partnership programs

Korea-CELAC cooperation cases

A broad assessment and suggestions to step up environmental cooperation

Ⅰ.

Ⅱ.

Ⅲ.

Ⅳ.

Ⅴ.

2

Source: Korea International Trade Association (K-Stat)

Exports to CELAC Imports from CELAC

(Unit: $ Million)

Korea's environmental goods exports and imports to and from CELAC countries

3

2.32% 2.24%

3.40%

2.10% 2.31% 2.29% 2.25%

1.68%

2.32%

3.40% 2.93%

3.20%

4.08%

4.96%

6.68%

8.08% 8.38%

7.10%

0.36% 0.34% 0.55% 0.44%

0.69% 1.25% 1.24% 1.24% 1.17%

0.85% 1.24% 1.19% 1.18%

1.38% 1.41% 1.73% 1.92% 1.87%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Share of Environmental Goods Exports in Total Exports Share of Environmental Goods Imports in Total Imports (B)

Ratio of Korea’s environmental goods exports and imports in total exports to and imports from CELAC countries (Unit: %)


Imports ratio in total imports from CELAC Exports ratio in total exports to CELAC

4

4.18% 4.11%

4.87%

2.88% 2.84% 3.07%

3.35%

2.60%

3.90%

4.41%

3.55% 3.73% 3.83%

4.47%

5.82% 6.01%

5.60%

4.97%

0.11% 0.12% 0.19% 0.15% 0.26% 0.44% 0.54% 0.58% 0.59%

0.40% 0.61% 0.73% 0.67% 0.64% 0.70% 0.80%

0.99% 1.02%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exports Ratio Imports Ratio

Ratio of Korea's environment goods exports to and imports from CELAC countries to same goods exports and imports to the whole world (Unit: %)


Exports ratio to CELAC countries to same goods exports to the world

Imports ratio from CELAC countries to same goods imports from the world

5

Korea's environmental goods exports to and imports from CELAC countries by sub-category, 2000-2017


(Unit: $ Million, %)

Wastewater management

Renewable energy

Waste management

Air pollution control

Noise & vibration abatement

Monitoring, analysis equipment

Heat/ energy saving & management

Nature resource protection

Environ mentally friendly products

Remediation & cleanup

Clean technology

Disaster management

Exports Imports

4,199.22 4,026.24

3,490.82

2,601.93

1,341.29

920.51

514.49 85.65

6

Ranking Country Exports

Total 17,235.27

1 Mexico 8,327.27

2 Brazil 4,038.23

3 Chile 1,186.02

4 Colombia 605.15

5 Venezuela 469.06

6 Argentina 423.03

7 Peru 395.37

8 Panama 378.74

9 Ecuador 345.65

10 Cuba 320.25


Ranking Country Imports

Total 2,728.78

1 Mexico 2,251.88

2 Brazil 315.46

3 Argentina 84.23

4 Chile 30.46

5 Costa Rica 21.78

6 Ecuador 7.43

7 Panama 3.26

8 Colombia 1.95

9 Uruguay 1.58

10 Dominica 1.5


Korea's environmental goods exports and imports to and from individual CELAC countries, 2000–2017

Source: Korea International Trade Association (K-Stat) 7

Korea’s governance for promoting international cooperation and the exports

International development cooperation, grant aid (KOICA),

multilateral environmental diplomacy

Focused industry, export support, international cooperation (KEITI) in

the environmental technology & industry

Ministry of Environment (MOE)

Ministry of Foreign Affairs (MOFA)

Provision of export loans and economic development cooperation

funds (EXIM bank)

Ministry of Strategy & Finance (MOSF)

Export support for all industry including energy industry (KOTRA)

Ministry of Trade, Industry & Energy (MOTIE)

Economic development knowledge

sharing program (KDI)

Research centers for Korea development policy

Office for Government Policy Coordination (OPC)

Trade promotion policy

Export support for SMEs (SBC)

Ministry of SMEs & Startups (MSS)

Focused on the environmental goods policy

Diplomatic policy and development cooperation

• Korea Environmental Industry & Technology Institute (KEITI)

• Korea International Cooperation Agency(KOICA)

• Korea Trade-Investment Promotion Agency (KOTRA)

• Small and Medium Business Corporation (SBC)

• Export-Import Bank of Korea (EXIM bank)

* Main Implementing Agencies *

• Korea Development Institute (KDI)

8

Ministry MOE MOTIE MSS MOSF

Implementing Agency KEITI KEIA KOTRA SBC EXIM

Industry export support programs

Overseas market info Provision

● ● ● ● ●

Exporter nurturing and export consultation

● ● ● ● ●

Technology cooperation Support

●

●

Feasibility study support ●

●

Networking/Marketing ● ●

● ●

Financing support ●

● ●

Overseas office establishment support

●

●

National certification schemes

Environmental goods and tech certification

●

Designation of good environmental firms

●

Programs to promote exports of the environmentally friendly goods

9

Master Plan

Feasibility study

Int'l joint program (Technology cooperation) Info.

Overseas Business Supporting

Networking

International Cooperation Level

Industry Export Support Level

Environmental plant unit Environmental product unit

Certification

Consulting support

Capacity building

SCP international cooperation Environmental mark mutual recognition

Linking Financing

Pilot Project

KEITI’s exports promotion programs of environmentally friendly goods

Support performance/ Year 2012 2013 2014 2015 2016 2017

(KEITI-supported) exports volume (A)

468 684 869 1323 1,479 1,804

Source: Korea Environmental Industry and Technology Institute (KEITI), Annual report (2012-2017) (US$ I = 1,100 KRW)

(Unit: $ Million, %) Exports performance through KEITI's SMEs support measures (2012-2017)

10

Operate Environmental Venture Center

Provide customized commercializing

services for Starts up and Ventures

Small and Medium Environment Company Set up and supporting business

Designation of outstanding environmental Companies and promotion of its excellence.

Provide financing loan for the environmental industry

Nurture specialized post graduate

Work Exhibition : ECO-JOB FAIR

Issue national certification for the environmental professionals

Support capacity building for the civil officers of partner countries

Support Environment Management master Plan for developing country

Support Feasibility Study of the overseas environmental project

Support Joint Environmental Technology Commercialization Program

GCF Project Development Support Program

Global Green Business Partnership

Environmental Exports Consulting Services

KEITI’s exports promotion programs focusing on environmentally friendly goods

11 Operating Environmental Industry Innovation Complex

To assist feasibility survey of environmental projects in oversea countries including profitability, necessary manpower, technology and financing.

To reduce risk of investment/entry/survey for new environmental market through supporting F/S

175 feasibility survey in 56 countries conducted from 2008 to 2017

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Projects 14 19 23 20 20 22 21 15 10 13

Partner Country

9 countries

14 countries

19 countries

16 countries

13 countries

19 countries

17 countries

12 countries

9 countries

10 countries

Feasibility survey assistance program

12


Joint environmental technology commercialization program

To support the commercialization and application of Korea’s environmental technology through the modification of promising Korean technologies to be in line with partner countries‘ relevant regulations and conditions with their local partners (companies, research centers, and etc.).

* Areas : Water, wastewater, waste, air, soil & groundwater, etc.

To improve partner countries' environment and their competitiveness in environmental technologies.

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Projects 14 19 23 20 20 22 21 15 10 13

Partner Country

9 countries 14

countries 19

countries 16

countries 13

countries 19

countries 17

countries 12

countries 9

countries 10

countries

13


Global green business partnership programs co-organized with KOTRA

To establish environmental business networks and identify promising projects by inviting buyers and business decision makers from all over the world → Expand global business opportunities

Invitation : Over 200buyers from all over the world (Asia, America, Europe, CIS, Africa, etc.)

Date/Place: September 4-6, 2018 / Seoul

Host: Ministry of Environment / Korea Environmental Industry Technology Institute (KEITI) / KOTRA / Provincial Gov.

Business Counseling Project meeting Environmental Business Exhibition

14


GCF project development support program

The main objective of this support is to provide technical assistance to NDAs and AEs in their development of GCF funding proposals. In close collaboration with partner entities, KEITI supports GCF project development by providing in-kind assistance delivered by reliable consultancies. Also, with KEITI’s financial support, AEs may also leverage the expertise of local consultancies as they see fit for tasks that require in-depth understanding of local environment and settings.

Areas of Support

• Project concept note development

• Feasibility study

• Environmental and social impact assessment

• Gender assessment and action plan

• PPF proposal writing

• GCF funding proposal writing

Procedure Accredited Entities (AEs) interested in the support program may submit their concept notes to KEITI. Through its internal review process, KEITI will conduct a thorough review on the concept notes and shortly notify the AEs whether it will extend its support. Once it decides to support, KEITI and the AEs will jointly prepare terms of reference to hire

consultancies to develop PPF or full funding proposals.

15


Cooperation type / Ministry MOE MOFA MOSF OPC MOTIE

Implementing Agency KEITI KEIA NIEHRD* KOICA EXIM KDI KOTRA

Environmental policy Cooperation

●

KSP ● ● ● ●

Technical cooperation to solve environmental problems

● ●

Capacity building support ● ● ● ● ● ● ●

Cooperation through multilateral development banks and International Organizations

● ● ● ●


International environmental cooperation and partnership programs by Ministry

* National Institute of Environmental Human Resources Development (NIEHRD)

16

To support the establishment of master plan for environmental improvement of a partner country

To pursue environmental enhancement including environmental infrastructure

- (Project Period/Volume) Approx. 14 months / $ 650,000 - 800,000 per country (100% covered by Korean gov.)

Current status of supports for establishment of master plans

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Vietnam Indonesia Cambodia Tunisia Algeria Bangladesh Columbia Sri Lanka Kazakhstan Russia Paraguay

- - Azerbaijan Uzbekistan Mongolia Chile Mexico Costa Rica Brazil Thailand Iran

- - - - Mozambique Peru Myanmar Algeria Columbia Saudi Arabia Mozambique

- - - - - - Laos - -

Launch of 2018 projects in Vietnam, Indonesia, Ethiopia Preliminary survey on 2019 projects In Uganda, Nepal, Senegal Strengthened support for follow-up management of master plan

Laying a foundation for operation of tech. cooperation committee for better policy dialogue


Environment management master plan for partner country

17

18

KEITI’s Cooperative Project

2013 Mexico Master Planning on Sewerage Management (MP) 2015 Modernization Projection of meteorological observation system in Mexico (FS)

2014 Brazil MOU Agreement with Estado de Goiás Industry Union 2015 Brazil Master Plan on Solid Waste Treatment Facility (MP)

2008 Nicaragua Water Supply System for the City of León (FS) 2016 Nicaragua Project of low-carbon Green Island based on Renewable Energy in Corn Island (FS) 2018 Improvement of Water Supply Network and Sewerage in Ocotal City (FS)

2014 Paraguay Capiatá Sewage Treatment Plant Construction Project (FS) 2017 Paraguay Improvement of Sewerage Management (FS)

2014 Bolivia Water Supply and Sewage Treatment Facilities Construction in Trinidad-Beni (FS)

2012 Ecuador Improvement of Basic Water and Sewage Infrastructure for Manta city(FS) 2017 Ecuador Project for the Water Supply Facility in Ibarra (FS)

2011 Colombia Guaviare Sewage Treatment Plant Construction Project (FS) 2013 Colombia Master Planning on Sewerage Management (MP) 2015 Colombia Master Planning on Sanitation Landfill Construction (MP) 2017 Colombia Water Quality Improvement of Fonce River (FS) 2018 Colombia Water Supply Expansion Project include the San Antonio of Padua Reservoir in Facatativa (FS)

2010 Peru Fabrication of Sludge treatment facility in Pisco mine (FS) 2012 Peru Master Planning on Sewerage Management (MP) 2012 Peru Landfill Restoration/LFG Utilization Project for Portillo Grande and Ancon, Republic of Peru (FS) 2012 Peru Construction of Waste Treatment Plants in Lima(FS) 2013 Peru Huánuco Wastewater treatment System Project (FS) 2014 Peru Juliaca City Wastewater Treatment Plant Project (FS) 2015 Peru Apurimac Region Sewage Treatment Plant Construction Project (Abancay, Andahuaylas city) 2017 Peru Water Supply and Sewerage System Rehabilitation Project for Chimbote (FS)

2010 Chile Mejillones Edelnor Coal-fired Power Plant DeSOX/DeNOx Facility Installation Project (FS) 2012 Chile Master Planning on Air Pollution Management & Conservation (MP)

2014 Costa Rica Master Planning on Construction Landfill (MP) 2015 Costa Rica Waste to Energy Plant Construction (FS)


18

KOICA: Partnership to realize sustainable development goal through ODA

Figures of ODA cooperation in the whole world and CELAC by area, 2000-2016

16.3%

23.5%

18.5%

13.4% 11.3%

4.0%

13.1%

24.7% 24.5% 22.7%

15.7%

8.4%

2.6% 1.4% 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Health Education Governance Technology, Environment,

Engergy

Agriculture, Rural

Development,

Rescue others

World Total CELAC

Item Total Amount

World $ 5,142 million

CELAC $ 525 million


(Unit: $ million)

19

Figures to CELAC by region and areas, 1987-2016


(Unit: %)

Korea Exim-bank : Cooperation for the economic growth and infrastructures through the Economic Development Cooperation Fund (Concessional Loan)

20

KSP Areas CELAC World

Industrial organization 28.4% 19.8

Economic Development 14.7% 16.3

Urban, rural and regional economics 14.7% 5.3%

International economics 9.5% 8.3%

Macroeconomics and financial economics

9.5% 14.3

Others 9.5% 6.5%

Labor and education 7.4% 9.4%

Agriculture, Environment and Resource

6.3% 8.3%

Public, Health and Welfare Economics

- 11.8%

CELAC countries , 28.30%

Asian countries ,

20%

Sub-Saharan African

countries, 18.30%

European and

Central Asian

countries , 18.30%

Middle Eastern

and Africa,

15%

(Unit: %)

256 KSP programs

In 60 countries (2004-2018)

(Unit: %)

Figures of supporting areas through KSP, 2004-2018 Figures of participating countries in KSP, 2004-2018


KOTRA, Korea Exim-bank and KDI: Knowledge sharing and capacity building (2004-2018)

• 17 CELAC countries : Belize (2), Bolivia (2), Brazil (3), Chile (1), Colombia (6), Costa Rica(4), Cuba (3), Ecuador (4), El Salvador(3), Guatemala (4), Honduras (6), Mexico (7), Nicaragua (2), The Dominican Republic (6), Panama (2), Paraguay (1), and Peru (5).

17 countries

(Unit: %)

21

Partner Country Ministry Implementing

Agency Program Cooperation Area

Costa Rica MOE KEITI Environment management master plan program (environmental policy cooperation)

Waste management

El Salvador MOFA KOICA ODA project Water resources, Climate change response

Bolivia MOSF K-Exim bank Co-financing facility Water Supply


22

Implementers and program type : KEITI’s Environment Management Master Plan

Area: Waste management

Region, parnter country: San José, Desamparados, and Aserrí, Costa Rica

Background : Costa Rica relied exclusively on landfills to dispose of garbage and waste. Due to a lack of further landfill sites, the government was forced to come up with long-term solutions.

Purpose: To improve the status of cities' waste management by supporting the authorities to establish master plans while identifying potential joint projects as part of fulfilling the comprehensive management plan

Main Contents :

•Basie survey and establishing waste management master plan for the target regions •Identifying priority joint projects and basic plan to implement projects •Capacity-building support

Duration and budget contribution: 2014-2015, $700,000

Expected outcome

•May improve regional legal and institutional grounds for Costa Rica's waste management •Propose policy program and action plan to management waste.

Costa Rica: Cooperation to establish waste management master plan and policy

Contribution to SDGs


23


El Salvador : Climate change response project by increasing restoring power of waterways

Implementers and program type : KOICA's ODA programme

Region, parnter country : San Miguel and Morazán, El Salvador

Area : Agriculture, Forestry, Fishery Purpose : To restore waterways and forests as a way to secure water resources and sustainable supply as part of responding to climate change so that the regions' residents could be supplied with more food in environmentally friendly ways Main content •Support for securing water resources: New water source development, water facility design and facility installation repair (farm ponds, drip irrigation facilities, water intake reservoirs, storm water collectors, etc.) •Mixed agro-forestry and reforestation: Installation of equipment for reforestation, technician dispatch •Regional development and capacity building: Strengthening resilience in adapting to climate change, water resource management capacity-building programmes for local government officials, on-site technical support and etc. •Dispatch of project management specialists: In-depth project planning and execution in different areas (implementation of water infrastructure design and construction supervision, design and supervision of project)

Duration and budget contribution: : 2017-2020, $7,950,000

Expected outcome : Establish a plan for securing water resources, build facilities and strengthen capacity of small-scale farmers and public officials to cope with climate change Contribution to

SDGs

24

Bolivia: Program for expansion and improvement for sustainable and resilient water supply


Implementers : Korea Eximbank

Program type : Korea Infrastructure Development Co-financing Facility for LAC

Parnter country : Bolivia

Area : Water Supply

Purpose •To increase and improve access to water services and enhance resilience to climate change, focusing on urban centers affected by drought and water shortage •To boost efficiency in managing supply and demand for water resources by building capacity of water and sanitation service operators •To help build pre-investment capacity to facilitate potential projects to improve water delivery

Duration and budget contribution: 2018-2023, $ 75,000,000 (IDB $ 50,000,000, KIF $ 25,000,000)

Main contents

•Infrastructure works : Water system construction, rehabilitation and expansion in urban centers •Supply and demand Management : Investment to improve and optimize water system •Pre-investment studies: Studies for water system construction, rehabilitation and expansion •Water management and drought control: Improvement of systems and networks for monitoring water and climatic data, studies and technical tools for development and implementation of drought/water management plans

Expected outcomes

•May improve the access to water for urban dwellers •May mitigate the impact of drought, efficient use of water resources (medium, long term)

Contribution to SDGs

25

Suggestions to step up environmental cooperation

Area of cooperation Contribution to the SDGs

• Developing institutional framework

Innovation of environmental industry focusing on SMEs Establishment of supporting organisations, strategies, and

programmes to promote innovation and exports for SMEs

• Technical consultation, business and financing cooperation to solve environmental imperatives

Extending drinking water distribution networks and sanitation services, wastewater and sewage systems

Solid waste incinerators, landfill infrastructures, waste recycling programmes

Reduction of urban emissions in the air

Widespread adoption of renewable energy and establishment of related infrastructures

Risk management and climate change adaptation

• Cooperation to improve production structure, patterns, and cultural shift

SCP cooperation, increase of production efficiency, increase of awareness on the eco products and voluntary certification schemes 26

Suggestions to step up environmental cooperation

Ways of cooperation

27

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International Cooperation and Promotion of Exports of ...conferencias.cepal.org/comercio_sostenibilidad2018... · International Cooperation and Promotion of Exports of Environmental