This post was contributed to the Future Summit blog by Simon Divecha, a Future Summit Australian Leadership Awardee, who recently visited Korea with the Australia Korea Foundation’s Next Generation Leaders Program (NGLP). What he has found is fascinating and provides a great portrait into what we can be doing in this ‘green economy.’

When we’re looking to the future Rahm Emanuel’s quote, never waste a serious crisis, keeps coming up. Over the last six months it’s been pushed heavily, particularly linking the global financial crisis to climate change action. Ex World Bank Chief Economist, Nicholas Stern, for example argues a significant part of financial stimulus should be directed toward green investment. So is it? And what’s significant?

When it comes to green investment it’s hard to go past current events in South Korea. Last year, at the 60th anniversary of South Korea’s independence, President Lee announced a new paradigm for the country – green growth. Translating words into action the country’s global financial crisis stimulus package of $38.5 billion USD is all focused on clean technology and environmental expenditure. The Korean Presidential Committee on Green Growth says it will deliver 956,000 new green jobs. The four year package is about 2.6% of Korea’s yearly gross domestic product. Funding goes to rivers, forests, clean transport and bikeways and, green homes and neighbourhoods.

At the same time this strategy is driving private investment. Samsung has just announced over 4 billion dollars of investment to green its electronics. It will cut the greenhouse gas embodied in its products by 50%. Once past the factory gate goods also use power and, Samsung says, its TVs, refrigerators and air conditioners will be the most efficient (lowest power use) products available. A month before this, JP Morgan announced it is raising $1 billion to invest in Korean solar, LEDs (high efficiency lighting) and green cars.

Renewable and very efficient energy projects also feature. A Korean stationary hydrogen fuel cell producing heat & electricity for 3000 homes is complete and should be commercially available next year. The plant uses 80% of the available energy from gas for a current cost of about AUD 0.23 per unit (the price of gas in Korea forming 50% of this cost). And the world’s largest tidal power plant can be found in Sihwa. It will deliver power at approximately half the cost of wind power. Hydrogen and tidal power plant pictures and detail are here. Cost comparisons here.

According to HSBC, the global stimulus funding directed at climate change is 436 billion US dollars. While Korea’s focus (about 80% of it climate related and the remainder on environmental initiative) is probably the greenest, globally nearly sixteen percent of economic stimulus expenditure goes on climate. In Australia this figure is just over nine percent, China it’s nearly thirty eight percent and in the USA it’s close to twelve percent.

So have the other countries missed the boat?

The crises that arise in the future from our greenhouse emissions will be with us for a long time even if all such emissions were to stop today. This implies we will find ourselves working to restore and revitalise the environment and the economic and social values that flow from such recovery.

There’s a stand out example of such action in Korea - the restoration of Cheong gye cheon – a project that converted 5.8kms of freeway through the heart of Seoul back to a river. Aptly titled Back to A future, this video tells the story.

For Australia with greenhouse gas emissions per person more than twice as high as Korea (a level South Australia’s Premier Mike Rann agrees puts us in the carbon obese category) we are also, perversely, in a strong position to lead. This is because answering climate change is as much about knowledge and adaptability as technological leadership. While the projected renewable energy growth in this country offers undeniable opportunities, ensuring effective change means more than just technology.

For example, much of the content for this blog came from my recent visit to Korea with the Australia Korea Foundation’s Next Generation Leaders Program (NGLP). Knowledge and expertise is highly valued – the NGLP group found ourselves writing advice for Korea’s president on the last day of our visit. In doing so we could draw on our own diversity, the group of 11 included at least 7 different country backgrounds or heritages and came with a depth of experience across the business, academia, government and non-government sectors. Such a mix, working to find solutions that are greater than the sum of the individuals involved, is something to be valued. Multiply this across Australia’s inherent multi-culturalisim, political growth and, struggles to answer challenges and maybe we’re starting to define a wealth of expertise that forms a significant competitive advantage.

We would do well to make the most this. In partnership with standout green technology and knowledge - as is occurring on commercial scales in South Korea - it has the promise to be a fascinating, productive and valuable mix.

Quick facts

South Korea

Population 48.5 million (2009)

GDP 1,280 billion USD (2008)

CO2-e per capita 11.1 tonnes per person (2000)

Australia

Population 21.3 million (2009)

GDP 800 billion USD (2008)

CO2-e per capita 30.3 tonnes per person (2005)

This entry was posted on Wednesday, July 29th, 2009 at 2:19 pm and is filed under Green Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.