'Green growth is a revolutionary paradigm shift' (35)

This is an experimental hybrid wind-solar power facility which can run 24 hours a day. It is operated by Sahwa Energy Control as part of the Korean government's initiative to promote green growth. / Korea Times file

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The folllowing is the full text of an interview with former Prime Minister Han Seung-soo. – ED.

The Korea Times: What in your perception is green growth?

Han Seung-soo: Green growth is a new growth paradigm different from traditional quantity-oriented fossil fuel-dependent growth. So it has to be initiated directly by the government. On the growth paradigm shift, the government has to be a leader while the private sector is a follower. Once the government sets the strategy in motion, then there will be incentives for the private sector to join in.

Green growth is a revolutionary paradigm shift and a revolution does not take place in the market. The government needs to take the initiative to lead the green revolution. Green growth cannot be achieved if the national and global economy is left to the free market. So the government needs to play a role in providing economic incentives and disincentives, subsidies, regulations and other macroeconomic planning tools, especially in developing countries.

KT: What, in your opinion, is Korea's position on the global stage in terms of green growth?

Han: Korea is the first country that implemented a green growth strategy. Green growth is Korea's response to the challenge of climate change. Most countries are trying to respond to climate change, but unless you change the system, you will not be able to solve the fundamental problems. Climate change is one of the best examples of externality on a global scale and what we are trying to do in Korea is to internalize it by endorsing climate change as a domestic variable in our policy planning equation.

Korea is the first country that has been actually implementing green growth policies since January 2009. We have several institutional frameworks initiated. The Presidential Committee on Green Growth was established and the National Assembly has passed a Framework Act on Low Carbon Green Growth, the first of its kind in the world. We are in the third year of implementing the First Five-Year Green Growth Plan (2009-13). There is no other country that is going through this kind of system change at this moment.

Three years ago when I was the prime minister and served as chairman of the 2009 OECD Ministerial Council Meeting, I was able to garner unanimous support of the participating ministers to adopt the Declaration on Green Growth. Based on that resolution, the OECD Secretariat began to study green growth, producing this year a very important document titled "Towards Green Growth".

KT: It is commonly said that green technology is a luxury of the rich. It is the luxury of countries that have already achieved everything and now they can care about such things as the environment. What is your response to such an idea?

Han: That is exactly the problem facing us when we want to emphasize the need for the growth paradigm shift. I think that the paradigm shift is facilitated because of the rapid advancement of information and communications technology. Many developing countries are beginning to benefit from the development of this. Green growth is not a luxury which can only be afforded in developed countries but a necessity for any country which wants to grow and at the same time, to enhance environmental sustainability.

KT: What are your worries about the future of the world, and your hopes, as far as green issues are concerned?

Han: I believe that mitigation alone will not solve the problem of climate change and that in order to change the system, the new paradigm of growth, i.e. green growth has to be adopted globally. That's why Korea's green growth strategy is timely and this new paradigm will be able to fundamentally solve the problem. The Global Green Growth Institute (GGGI) was created to share Korea's knowledge and experience on green growth with developing countries.

KT: What is the role of the government in promoting green growth?

Han: Green growth cannot be achieved if the national and global economy is left to the free market. The government needs to provide economic incentives and disincentives, subsidies, regulations and other macroeconomic planning tools, especially in a developing economy.

Traditional, quantity-oriented growth models cannot solve the problem of climate change. Since the First Industrial Revolution, the world has grown by means of electricity, steam and mass production – physical power.

This will change. From now on, mental capacity will be the driving force of a Third Industrial Revolution. Climate change is a slow phenomenon. As people do not feel an urgent need for change, they tend to maintain the status quo.

KT: Can you talk about the journey for you and major achievements of the institute?

Han: Although GGGI is headquartered in Seoul, it is an international institute. We also have offices in Copenhagen, Abu Dhabi and London. President Lee Myung-bak also went to Denmark and agreed with Prime Minister Rasmussen to form a green growth alliance, which is the first of its kind in the world.

And we hope to expand this alliance to include other countries that are interested in observing, as well as promoting green growth within and outside their boundaries. The GGGI is still very young.

But I think there is a great demand for knowledge on green growth all over the world, and we will continue to promote a new model of economic growth and development through cooperation with partner countries and partner institutions.

KT: How is it financed? To what extend is the GGGI connected with the government?

Han: The GGGI has received financial support and encouragement from Australia, Denmark, Germany, Japan, Korea, the UAE and the U.K. And it is partnering with Brazil, Ethiopia, Indonesia, Cambodia, Kazakhstan and the UAE in the development of green growth economic development plans.

KT: Are you looking to convert it into an international organization?

Han: The adoption of the Establishment Agreement was held at the Global Green Growth Summit on May 10, 2012. The GGGI is expected to hold the IO Conversion Signing Ceremony on the occasion of the Rio+20 conference in Rio de Janeiro, Brazil in June. Also in late October, the GGGI will be converted into an international organization on the occasion of the pre-COP Ministerial Meeting.

KT: On which criteria does GGGI select countries for cooperation?

Han: The GGGI provides analytical and institutional support to developing countries that wish to develop green growth strategies which are aligned with other national economic goals.

A typical GGGI country program consists of a green growth plan (GGP) analysis and design, domestic capacity building, and public-private partnership to support GGP implementation.

The institute provides support for the development of GGPs when it receives a high-level request from a developing or emerging market government. The precise scope of work in each country depends on the starting conditions and specific challenges.

KT: Why was the institute founded?

Han: I think that unless we change the past paradigm of the earth, we won't be able to solve the problem of climate change, which is what the future of humanity basically depends on. Until now, the growth paradigm of the world for economic progress used labor and capital as its main factors of production, and highly depends on fossil fuels for energy emitting immense amounts of carbon into the atmosphere. And because of these carbon emissions, the average temperature of the earth over the past 10,000 years has increased by 1 degree centigrade.

What we are trying to do is change the so-called growth paradigm of the past century from high-carbon to low-carbon. The GGGI was created only a year ago but has been affecting many countries already. We hope to continue to share the experience and knowledge of green growth with developing countries where domestic capacity is lacking.

KT: What are the goals of the GGGI?

Han: The GGGI focuses on three primary areas: green growth planning, research and public-private cooperation. To date, our most developed platform is green growth planning. This involves partnering with developing countries in order to jointly arrive at local, environmentally sustainable methods of economic development.

Currently, the GGGI is active in Ethiopia, Indonesia, Kazakhstan, the United Arab Emirates, and Cambodia, with plans to expand to a number of other countries. Together with other partner countries, we are assisting these nations on specific green growth projects that range from household irrigation to deforestation.

As of now, a large portion of the GGGI's operating budget is dedicated to these kinds of projects. The remainder of our resources is devoted to research and public-private cooperation. These ratios will change as we evolve and grow as an organization.

KT: What are your future plans, what is your vision? How can Korea and your institute play a leading role in the adoption of green growth technology?

Han: Our ultimate vision is for the world to emulate what Korea is trying to do in tackling the fundamental problem of climate change. The GGGI was created only a year ago but has had an impact on many countries already.

We want to continue to share our experience and knowledge on green growth with developing countries where the domestic capacity is lacking. Developed countries will not have any problem in emulating what we have been doing.

As the main factor of production in green growth is new ideas, transformational innovations and state of the art technology, the GGGI has to do its best in promoting green technology.

KT: What is your role as the chairman of the board of directors of the GGGI?

Han: My role is to make strategic decisions in encouraging governments, private institutions and academics of the world to move toward economic and industrial policies that emit less greenhouse gases.

Countries with advanced economies can easily emulate others' green-growth policies because they have the capacity. Therefore, the main role of the GGGI is to share ideas for green growth with developing economies.