Cooperation on Acquiring Green Technology: Focusing on Renewable Energy
Keeyoon, Jang, SERI Quarterly
low carbon, green growth, renewable energy, greening of conventional industry, economic profitability, environmental soundness, social responsibility, sustainable development
The world is simultaneously facing urgent environmental issues such as global warming and energy problems as well as economic difficulties stemming from the global financial crisis Accordingly, countries around the world are implementing Green New Deal policies. In Korea, on August 15, 2008, President Lee Myung-Bak announced a new vision for national development of "Low Carbon, Green Growth." Thereafter, a presidential committee on green growth was launched; work began on drafting legislation, the Basic Act on Low-Carbon Green Growth; and government appropriated budgeting for green growth.
Unlike in the past, when economic growth and environment protection were viewed as somewhat conflicting objectives, "green growth" embodies a view that economic profitability, environmental soundness and social responsibility can all be achieved simultaneously in a strategy for sustainable development. Hence, many nations, including Korea, are now attempting to discover new green businesses that will lead to efficient green growth.
However, the definition of green industry is yet unclear. This paper attempts to define it by dividing the industry into three parts. The first part is the greening of conventional industries. It recognizes the value and importance of conventional industries, but incorporates the urgent need to adopt environment-friendly methods. The second part is the environmental industry, which handles pollution prevention and the end-of-pipe pollution treatment as well. This includes all green technology, equipment and facilities, and consulting services that help to combat contamination and issues related to pollution. The third part is renewable energy. It is increasingly being seen as a substitute for fossil fuels (substitute energy), a solution to global warming (clean energy), and a new growth engine that can help the global economy escape from the worldwide recession.
Considering the characteristics of the renewable energy industry, it may be the most effective means of achieving green growth. This article takes a close look at renewable energy and suggests ways to facilitate domestic and global cooperation to secure green technology.
NEW & RENEWABLE ENERGY INDUSTRY
According to Korea's Promotion of Development and Use of New and Renewable Sources of Energy Act (2009), new energy refers to energy generated from fossil fuels used in an environment-friendly way, such as gasification of coal, while renewable energy refers to the use of solar, wind, hydro, and other powers. Simply, new and renewable energy (NRE) can be understood to mean clean fossil fuel energy or non-fossil fuel energy. (See Table 1)
NRE can provide both opportunities and risks In terms of opportunities, the renewable energy industry is expected to grow 10-20 percent annually, creating a number of new business opportunities, especially in countries where IT is highly developed with good business infrastructure and high quality labor. Risks in new ventures can be mitigated by taking advantage of government support programs such as feedin tariffs (FIT) and renewables portfolio standards (RPS).
As for the risks associated with the industry, high production costs and low efficiency makes economic stability difficult to achieve. Also, while it may be easy to play catch-up in equipments and operations, there exists a high technological barrier in developing proprietary technologies Moreover, excessive competition due to an overcrowded market is likely. (See Figure 1)
NRE Supply Policies around the World
Countries around the world consider NRE to be the best way to promote green growth and are now trying to increase the supply of renewable energy.
* The …
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Publication information: Article title: Cooperation on Acquiring Green Technology: Focusing on Renewable Energy. Contributors: Keeyoon, Jang - Author. Magazine title: SERI Quarterly. Volume: 3. Issue: 1 Publication date: January 2010. Page number: 28+. © Not available. Provided by ProQuest LLC. All Rights Reserved.