The Ministry of Environment (Minister Cho Myung-rae) and the Ministry of Trade, Industry and Energy (Minister Sung Yun-mo) announced a plan for the Green New Deal with the presence of representatives from related government agencies at Government Complex Sejong at 10:30 a.m. on July 16th.

The Green New Deal plan was developed as part of the comprehensive plan for the Korean New Deal announced on July 14th.

The plan consists of strategies to overcome both the economic crisis induced by COVID-19 and the climate and environmental crises that brought about the pandemic. 

I. Background and direction

The COVID-19 pandemic emphasizes the importance of national growth strategies based on sustainability, including the conservation of nature and ecosystem.

Leading developed nations are strengthening efforts to respond to climate change by announcing plans to achieve Net-Zero* and suggesting the Green New Deal as a strategy to lead a low carbon economy.

* A status that the amount of net carbon emission is zero

However, Korea is required to change economic and social structures, as it keeps increasing greenhouse gas emissions* and maintaining carbon-based industrial ecosystem**. 

* The average greenhouse gas emissions in Korea increased by approximately 2 percent remanufacture technologies for old electric equipment from 2000 to 2017 annually.

** Energy consumption per added value (toe/$1 million): (Korea) 104, (Germany) 72.5, (Japan) 84, (The U.K.) 57.4

Under the circumstance, the Korean government will implement the Green New Deal to achieve a Net-Zero society, as a way for a bold, "green" transition of its economy and society.

The Green New Deal aims to fortify the safety net to respond to climate and environmental crises by converting our living environments (cities, spaces, etc.) to become more eco-friendly and accelerate the transition to a low-carbon society by expanding the use of low-carbon and distributed energy resources.

Also, as part of the Green New Deal, the government will implement protective measures for the people and sectors that could be marginalized during the economic and social transitions, and establish a low-carbon industrial ecosystem by building a foundation for innovative green industries.

II. Expected outcomes and future plans

To achieve the goals, the government will invest 73.4 trillion won (42.7 trillion won from the National Treasury) in total by 2025. It is expected that from the investment, 659,000 new jobs will be created and 12.29 million tons of greenhouse gas emissions will be cut (20.1% of the national greenhouse gas emission reduction target in 2025). 

The government will focus on the implementation of the 2020 National Greenhouse Gas Reduction Roadmap, and the Renewable Energy 3020 Plan flawlessly as parts of the Green New Deal and create the 2050 Long-term and Low-carbon Development Plan in the second half of 2020 through a broad opinion collection from industrial circles, civil societies, and the people on the initiatives to achieve Net-Zero and other goals.

Furthermore, through the Strategy Meeting on the Korean New Deal chaired by the President, the government will gather national capacity to achieve the Green New Deal goals. 

Throughout the processes, the Ministry of Environment and the Ministry of Trade, Industry and Energy will actively communicate with local governments, companies, and civil societies to encourage the participation of various stakeholders and expand their roles. 

III. Key contents of each category

The following are key contents of each category.

1. Make a Green Transformation of Urban, Spatial, and Living Infrastructure 

The government will implement projects to build the safety net to respond to climate and environmental crises through the green transition of urban, spatial, and living infrastructure.

① Remodel Public Buildings Close to the People to Achieve Net-Zero

The government will implement a green remodeling project to transform target buildings into more 'warm and cozy' places by installing renewable energy equipment, adding extra insulation, and using eco-friendly materials.

The first targets for the remodeling are public buildings, including 225,000 public rental housing units, 2,000 public daycare centers, public health centers and other medical facilities, and 1,000 cultural facilities.

'Green smart future schools' will be built that reflect the concepts of the eco-friendly green school, digital-based smart school, and multi-purpose school facilities for local societies, based on the spatial innovation plans designed with students and faculty.

The government will remodel or reconstruct 2,890 school buildings to improve energy efficiency and student's health, and install digital education equipment* to realize the vision of smart classrooms, allowing futuristic teaching and learning.

* Electronic blackboards, beam projectors, large televisions, attachable and moveable monitors, etc.

② Restore Green Ecosystems in Land, Sea, and Cities

The government will transform 25 cities into smart green cities with better capacities to respond to climate change.

After assessing climate and environmental issues of each city, various solutions (including the concepts of climate elasticity, low-emissions, and ecological restoration) will be provided, and tailored improvement procedures will be implemented.

To reduce fine dust and improve living conditions, the government will build urban green areas, including the forests to block fine dust (630ha), 216 forests for daily lives (indoor and outdoor gardens), and 370 green forests for the safety of children*.

* The forests that have separated roads for pedestrians and vehicles to ensure children's safe commuting to school

In addition, ecological restoration projects will be carried out for 25 damaged urban areas and 16 national parks to provide ecological services to every urban resident. 

③ Establish a Clean and Safe Water Management System

To provide clean drinking water and reduce water and energy usage, the government will implement projects to build smart water supply and sewage facilities and advance water supply systems.

The entire tap water provision process nationwide, including water quality monitoring and providing information on tap water, will be managed based on information technology and AI, and 15 intelligent wastewater treatment facilities will be built. 

Also, 12 purification plants will be upgraded, and 3,332km long old water supply facilities will be improved. 

To respond to climate crises (including drought and flood), a big data-based flood forecasting system will be established for 100 river branches likely to be damaged by flood, and additional water supply and seawater desalination facilities will be built in the drought areas.

2. Diffuse Low-carbon and Distributed Energy Resources 

The government will carry out projects to penetrate low-carbon and distributed energy resources nationwide and create new industries and jobs related to them. 

④ Establish a Foundation to Diffuse Renewable Energy and Support a Fair Transition

The government will implement 'Green Energy' projects to nurture an ecosystem for the renewable energy industry. 

The national shareholder project, the factory roof solar panel installation financing project, and the solar power joint research center project are new key projects for this initiative, and revision of relevant systems will be carried out as well (building industrial cluster complexes, increasing the RPS ratio, and creating measures to achieve RE100). Existing projects to support the green energy sector, including diffusing and financing projects, will be expanded even more. 

Through the acceleration of renewable energy diffusion, the number of solar and wind power generation facilities will be increased by three times or more than that of 2019 until 2025.

* Renewable power generation capacity (solar, wind): 12.7GW (2019) → 42.7GW (2025)

'The national shareholder project' will be introduced to provide loans for the local residents who want to invest in new and renewable energy projects, and a profit-sharing model will be developed to return the profits from the projects to the residents.

The industrial cluster complex system to be led by local governments will also be introduced to ensure systematic implementations of projects in the sites that secured receptiveness and completed environmental assessment.

The renewable portfolio standard (RPS) target ratio will be increased* to expand renewable energy demands, and measures to achieve RE100** (Third-party PPA, etc.) will be developed to attract Korean companies and public organizations to the RE100 campaign. 

* 8% → 9% in 2021, 9% → 10% in 2022 (by amending the enforcement decree), revision of legal cap (10%) (by amending the act)

** A voluntary campaign aiming each company to go 100% renewable energy

To connect the expansion of domestic renewable energy markets to the growth of industrial ecosystems, the government will support the establishment of key R&D and research infrastructure for the solar, offshore wind, hydrogen, and hydrothermal power generation sectors.

* (New projects added to the supplementary budget plan of 2020) Building a joint research center for manufacturing companies in the solar power generation sector, supporting feasibility studies and building demonstration complexes for the development of large offshore wind farms, development of the source technologies for green hydrogen power generation, etc.

To nurture the hydrogen power generation ecosystem, the government will focus on the fostering of companies dedicated to hydrogen technologies, as well as the development of source technologies for every cycle of the hydrogen industry*, and establish six hydrogen pilot cities** by 2025.

* Intensively supporting the production of green hydrogen using renewable energy resources, and the R&D of materials, parts, and equipment related to the hydrogen power generation, including charging stations and fuel cells

** (2020?2022) Establishing three hydrogen cities (Ulsan, Jeonju and Wanju, Ansan), and establishing three more pilot cities by 2025

Furthermore, the government will implement measures to protect marginalized regions and people during the green transition, including the support for the transition to the new and renewable energy models in the regions expecting a rundown of existing business models, such as coal power generation.

⑤ Establish Intelligent Smart Grids for Efficient Energy Management

The government will carry out projects for energy efficiency and smart grids. All projects for these sectors are newly developed and will be implemented from the second half of 2020 or from 2021.

Smart electric meters capable of bidirectional communication will be installed in 5 million apartment houses. An energy diagnosis database of 3,000 old buildings will be established to promote investment in the energy demand management sector.

An eco-friendly power generation system to reduce greenhouse gas and a comprehensive monitoring system for renewable energy to increase the systematic adoption of renewable energy will be installed in 42 islands nationwide. 

Meanwhile, the government will invest 2 trillion won in the underground power and communication line project for school zones and other areas by 2025 to enhance safety and improve living conditions of the people.

⑥ Expand Green Mobility by Diffusing Electric and Hydrogen Vehicles

In the eco-friendly transportation sector, the government will expand the diffusion of green mobility solutions (electric vehicles, hydrogen vehicles, etc.) and build capacity to lead the global market by securing technologies and nurturing an industrial ecosystem.

By 2025, 1.13 million electric cars and 200,000 hydrogen cars will be sold (accumulated numbers), and 15,000 electric vehicle chargers (rapid charging) and 450 hydrogen stations will be built. 

The transition into eco-friendly vehicles will be extended from passenger cars to more diverse types of vehicles, including trucks, commercial vehicles, and construction equipment. 

To that end, 1.16 million old diesel cars and construction equipment will be scrapped in advance, and old diesel trucks and school buses will be swapped for eco-friendly LPG vehicles.

Also, the government will support auto parts companies to secure world-class technologies by investing in the technology development for the electric and hydrogen vehicles and autonomous vehicle sectors.

Likewise, the government will replace 34 government and naval vessels and other private vessels with eco-friendly ships, and develop and demonstrate eco-friendly blend fuels for ships. 

3. Establish an Innovative Ecosystem for Green Industries

The government will discover new green industries and create conditions for green innovation, including the support for R&D and financing. Iconic new projects for this category are the establishment of smart green industrial complexes, clean factories, and biological factories. The government will support new R&D projects to cut greenhouse gas as well. 

⑦ Foster Promising Companies to Lead Green Industries and Establish Low-carbon and Green Industrial Complexes

The government will innovate industrial complexes that account for 77 percent of the total greenhouse gas emissions of the industrial sector and nurture the companies to lead green innovation. 

'Smart green industrial complex' project is to build smart energy platforms* in ten industrial complexes by 2025, and establish energy-independence industrial complexes by utilizing fuel cells and ESS.

* ICT-based data collection and energy flow visualization, operation of integrated power grid control centers, etc.

The government will support companies in 81 industrial complexes to be able to cooperate in the recycling of industrial waste and build 100 smart biological factories and 1,750 clean factories to minimize air pollutant emissions, including fine dust and greenhouse gas. 

Also, the government will nurture 123 high-quality green SMEs (environment and energy sectors), and establish the Green Startup Town, a cluster for startups in green industries. 

'Green Fusion Cluster' for the five leading climate and environment sectors* will be established to support the development and demonstration of relevant technologies, and production and sales of products. 

* (Category) Clean air, biomaterial, hydrothermal energy, future waste resources, and resource circulation 

⑧ Establish a Foundation for Green Innovations, including R&D and Financing

The government will reinforce the infrastructure for the green transition, including research and development and green financing. 

The government will support the development of technologies for greenhouse gases reduction, fine dust response, and resource circulation promotion, including the demonstration of Carbon Capture, Utilization, and Storage (CCUS) technologies, technology development for the production of useful materials using CO2, and the remanufacture technologies using old electric equipment and exhausts and engines of special vehicles. 

A 1.9 trillion won worth of green financing and a 215 billion won worth of public-private partnership fund will be established to promote companies' investment in green industries.

Similarly, the government will strengthen the foundation for the promotion of green financing, including the operation of an organization dedicated to environmental information, to provide funding for companies in the environment and energy industries. 

IV. Major projects

Through close cooperation between the ruling party, the government, and Cheong Wa Dae, the government selected the projects that suggest future visions among the 'Initiatives for the Korean New Deal' as the ten major projects.

For the Green New Deal, there are five major projects: ① Green Smart School, ② Smart Green Industrial Complexes, ③ Green Remodeling, ④ Green Energy, and ⑤ Eco-friendly Future Mobility.

※ Refer to the attached for the details of the five major Green New Deal projects.

"Proactive and bold financial investment by the public sector will herald the overall economic and social transition," stated Environment Minister Cho Myung-rae. 

"We will keep developing the Green New Deal as a long-term strategy to achieve carbon neutrality through the participation of and communication between various players, including the central government, local governments, civic societies, and private companies."

"Today, green competitiveness decides the overall competitiveness of a nation," emphasized Industry Minister Sung Yun-mo. "We will do our utmost to make Korea lead the global low-carbon economy through the Green New Deal."