[Green Growth:Korea`s New Strategy (26)]Can a quiet energy giant feed an Asian tiger

The following is the 26th in a series of articles focusing on the Korean government`s "green growth" strategy. The series will also introduce the increasing efforts of major advanced countries of the world to promote a green economy. - Ed.





Hidden beneath Canada`s image of pristine, snow-capped mountains and advanced metropolitan centers is a leading source of clean energy, the world`s top producer of hydroelectricity and uranium, and a key voice in the search for a green way forward.

Perhaps a quiet energy giant, Canada has much to offer Korea at a time when energy supply is intricately linked to an urgent call for action on the environment and efforts to resuscitate the world economy.

Attracted to Canada`s vast natural environment and multicultural cities, many Koreans are unaware that Korea`s strategic partnership with Canada affects their everyday life: from the health of the environment they will pass to their children to the availability of energy to fuel their economy.

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Korea is one of the world`s largest energy buyers and home to a dynamic economy tipped to beat the curve in recovering its strength in the wake of the economic crisis.

Linked by shared interests and concerns, Korea`s strong partnership with Canada will help us both navigate the environmental and economic uncertainty that the world now faces.



Canada: the answer to Korea`s hunt for secure, sustainable energy

Primary energy consumption in 2030 is expected to increase by 55 percent, according to the world energy outlook released by the International Energy Agency. Traditional sources of energy are exhaustible, and this means that we will all need to both secure access to existing energy resources and develop alternatives.

Energy security in Korea is of greater concern than in most countries as Korea depends on imports for virtually all of its energy needs. Almost 97 percent of Korea`s energy resources come from abroad. In 2007, the value of the country`s energy imports was estimated at $94.5 billion, equivalent to 10 percent of GDP.

This vulnerability has been a growing concern for the Korean government amid recent fluctuations in oil prices and has triggered an all-out effort to secure stable energy supplies abroad through "resource diplomacy."

As an emerging "energy superpower" - a role for Canada that has been described by Prime Minister Stephen Harper himself - Canada can be the answer to many of Korea`s energy concerns.

We rank fifth overall in total energy production, first in uranium and hydroelectricity production and capacity, third in global gas production, and seventh in oil production.

Canada is fortunate to be home to the second-largest proven petroleum reserves in the world, producing more than 1 million barrels a day and well on our way to 4 million a day by 2015.

As oil prices rose last year, Canada attracted a great deal of attention not only for its abundant resources but also its stability as an energy trading partner. Living in a region where stability is at a premium, Korea already clearly understands the value of stable and dependable partners. Canada provides not only resources but, perhaps more importantly for Korea, security of supply.

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In July 2006, the Korea National Oil Corporation purchased a 100 percent stake in the Blackgold oil sands in Alberta, which has an estimated capacity of 216 million barrels of oil. Acquiring this stake meant that Korea had secured both its largest-ever source of oil and the right to exploit these resources independently. In addition to providing reliable access to oil, Canada was Korea`s second-largest source of coal in 2007.

But beyond our valuable oil and mineral deposits, we are also active in the renewable energy sector. In Canada, hydroelectric power is so common that the word "hydro" is used to signify all sources of electricity.

In the early 1980s, in response to high oil prices and energy shortages, Canada saw the potential of renewable energy and made strategic investments domestically. Canada now produces significant quantities of energy from its abundant water, solar, wind and biomass resources and plans to ensure this sector continues to grow.

In addition to investments at home, Canada has recognized opportunities to collaborate with Korea and other countries in Asia on renewable energy development and joined the Asia-Pacific Partnership on Clean Development and Climate in October 2007.

This partnership follows a rich history of Korea-Canada cooperation. Korea took advantage of Canadian technology early on in its search for safe and clean energy by employing four Canadian CANDU 6 reactors at the Wolseong nuclear power site. Not only is Wolseong the best-performing nuclear plant in Korea on a lifetime basis, but it is also the best-performing CANDU plant in the world. However, Korea still needs a dependable source of imported uranium, and Canada leads the world in safe and reliable supply. The Korean private sector is already actively involved in new uranium projects in Canada.

A combination of Canada`s advanced technology in nuclear energy and Korea`s excellence in construction could lead to the exportation of nuclear energy to other nations.

Going further in energy cooperation, Korea may also want to take advantage of oil exploration opportunities off Canada`s Atlantic coast or secure a stake in a planned pipeline that will one day stretch from the Alberta oil sands to the Pacific Ocean.

Surely this is just the beginning of mutually-beneficial collaboration.



Responding to today`s twin challenges

The world economic crisis has ensured that tough decisions are in our shared future as our leaders confront the global challenge posed by climate change while, at the same time, pursuing renewed prosperity for our citizens in a time of crisis.

As one of the world`s most significant suppliers of the energy that drives the world economy, Canada has an important voice in international fora, where countries from all over the world and at every stage of development meet to address climate change and energy-related priorities.

Canada believes that international efforts to combat climate change and establish a new post-2012 agreement must balance environmental protection and economic prosperity. We must maintain a long-term focus to develop and deploy clean technologies, and to do so we need commitments from all major economies. We must all support a constructive and effective global action plan.

Canada is concerned that countries with binding commitments under the Kyoto Protocol represent a falling share of global emissions, now less than 30 percent. Major emitters, such as China, India and the United States, none of which have binding commitments under the Kyoto Protocol, will represent around 50 percent of global emissions by 2050, making their participation in a new climate change regime imperative.

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Canada is aware of the official Korean position that, for the purposes of climate change commitments, Korea considers itself a "developing country." Given the high standard of living Koreans enjoy today and the ambitious targets established for future development by President Lee Myung-bak, perhaps the time has come for a reassessment of where Korea fits, as a developed country, in terms of its future role as a leader in "green growth."

The Canadian government is focused on establishing a realistic and responsible approach to addressing the challenge of climate change. We are committed to reducing Canada`s total greenhouse gas emissions by 20 percent by 2020 and to placing Canada on a path to achieving a 60-70 percent reduction by 2050, relative to 2006 levels.

We aim to ensure that 90 percent of Canada`s electricity needs will be provided by non-emitting sources, such as hydro, nuclear, clean coal or wind power, by 2020. To further this ambitious national goal, the Canadian government will continue to provide support for biofuels, wind and other energy alternatives. We are already well on our way to meeting this goal and will ensure that our actions going forward remain in step with our partners.



Putting our money where our mouth is: Canada`s green budget

Canada takes seriously its responsibility to protect and promote the rich natural resources that define our environment and give our nation much of its form and character.

Our government`s most recent budget, announced in January 2009, includes significant dollar investments to allow for the continued protection and conservation of Canada`s environmental heritage, and also for further research into how we can best conserve the natural resources and landscapes that will be left behind for future generations.

The breathtaking but fragile wonder of the Canadian Arctic was captured recently in the popular Korean documentary "Tears in the Arctic" by MBC. The documentary explored Canada`s northern wilderness, a home to thousands of aboriginal Canadians that depend on this harsh environment to build their livelihoods and raise their families.

To ensure we have the skills and technology needed to protect our unique, northern ecosystem, Canada is investing $85 million over two years to support ongoing Arctic research and to undertake a feasibility study for the establishment of a world-class Arctic research station. Canada`s sovereignty in the Arctic is matched by our commitment to maintain the fragile environment there.

We have committed $1 billion over five years for clean energy research development and demonstration projects, including carbon capture and storage, and $75 million has been set aside for our vast and beautiful national parks. Over the next two years, $10 million will be devoted to improving our annual reporting of key environmental indicators, such as clean air, clean water and greenhouse gas emissions.

Efforts to secure the health of our environment begin at home, and Canada has promised $1.3 billion over two years to support renovations and energy retrofits that will make Canada`s social housing stock more energy efficient.

We are continuing to develop a domestic framework for industrial greenhouse emissions and plan to put a regulatory framework into law shortly. Canada is also committed to working with the new U.S. government to develop and implement a North American cap and trade system for greenhouse gases.

These commitments are just the tip of the proverbial iceberg of green initiatives that the Canadian government is pursuing. We will achieve much more by joining together with key regional partners, like Korea.



Working with global partners

Tackling environmental challenges and climate change begins at home in our respective regions, and these efforts will eventually be multiplied by more global cooperation.

Canada has started by taking tough action domestically and then turning to our North American partners to build a low-carbon, sustainable global economy.

Canada and the United States, for instance, have agreed to establish a clean energy dialogue to collaborate on the development of clean energy science and technologies that will reduce greenhouse gases and combat climate change.

There is a high degree of consensus and commonality between Canada and U.S. principles on climate change. As the United States develops its national climate change policy, Canada will continue to look for opportunities for harmonization to ensure our policies are effective.

Perhaps of greatest interest to Korea may be the collaboration planned for the North American integrated automobile sector, including in the area of fuel performance standards.

This type of cooperation will carry over to international negotiations. While we need all major emitters onboard in our efforts, obligations need not be the same for every country. We know that actions must be appropriate to national circumstances. In particular, we need to continue to support effective international action to strengthen the capacity of the poorest and most vulnerable countries as they endeavor to adapt to the impacts of a changing climate.

In October 2008, Canadian Prime Minister Stephen Harper announced that Canada would provide $100 million to support international climate change adaptation in those countries most vulnerable, particularly those in Africa, the Caribbean and the South Pacific.



Sharing our vision for the future

In 2010, Canada will host the G8 while Korea will take over as chair of the G20. We will have a unique opportunity to work together to build an effective and coordinated agenda for these two key international fora.

Our joint efforts will help push forward global ambitions for rapid and sustainable economic recovery, and will help promote effective multilateral cooperation to combat climate change.

As strong middle powers with a shared, strategic interest in green technology and energy security, Canada and Korea have much to offer each other and the world through ever-greater collaboration.



By Ted Lipman