The following is the 57th 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 to promote a green economy. - Ed.



By Wilhelm Donko



Environmental protection has become an increasingly important item on the Austrian social and economic policy agenda.

The Republic of Austria has a population of around 8 million and an area of approximately 84,000 square kilometers, making it only a little smaller than the Republic of Korea. The country belongs to the Central European transitional climatic zone.

The variety of Austria`s geography and climate has resulted in a wide diversity of vegetation, according to the different climatic conditions. Austria is one of Europe`s most heavily wooded countries, with nearly half of its total area being covered by forests.

Environmental protection has become an increasingly important item on the Austrian social and economic policy agenda. Due to the complex nature of the problems related to environmental pollution and the traditional distribution of public tasks among a number of regional authorities, measures aimed at protecting the environment are not only taken by the federal authorities, but also by provincial governments and municipalities, all of whom make considerable investments.



Austria is one of the leading countries in Europe in the field of environmental policy. In the fields of waste management, chemicals or air pollution related to boiler installations, the standards in Austria are very stringent by European standards. The limits for airborne pollutants are also within the bandwidth of those applicable in other most developed countries in terms of environmental protection. Moreover, ecological criteria have increasingly been taken into account in agriculture. Thus the regulations in force for the use of pesticides and fertilizers, for instance, are very strict.

By adopting the Federal Constitutional Act for a Non-nuclear Austria, Austria renounced the use of nuclear energy.

The objective of the Environmental Information Act is to enhance transparency in the field of environmental information and access to environmental data. Since 2003 Austria has been a party to the Aarhus Convention, under which Member States make information available to the public and to provide a comprehensive, computer-based information network for the collection of data on environmental protection. The Environmental Impact Assessment Act of 2005 provides for the assessment of direct and indirect effects planned projects may have on humans, animals and the environment. Austrian legislation is thus increasingly taking citizens` health and environmental concerns into account.

As a result of the programs implemented, the water quality of Austria`s lakes was raised to excellent levels. Implementing the EU Water Framework Directive, which undertakes a type-specific assessment of the ecological state of domestic bodies of water, Austria has amended its Water Act. In order to classify the system, a detailed, state-of-the-art computer-based documentation of all Austrian rivers and lakes was prepared.

Likewise, Austria attaches vital importance to safeguarding and improving the protective function of forests, which is indispensable to a mountainous country.

Through its EU membership Austria became part of a common market, thus becoming more attractive to countries both inside and outside of the European Union due to its location between Eastern and Western Europe. These factors have opened up new possibilities for both consumers and producers, also in the field of environmental technology.

Cooperation with Korea

Austria welcomes the fact that the Korean government has recently stepped up significantly its efforts to implement a green growth strategy through the advancement of environment technologies all over the country.

Our approach to the energy and environment sector is strongly future-oriented. As Austria is an industrial country with a small domestic market, the export economy is particularly important. The Austrian economy is dominated by small and medium-sized enterprises. Austria considers Korea to be one of the most interesting countries for cooperation in environmental technology and it would be highly desirable to pool our resources for a mutually beneficial approach in this direction. One of the promising areas of cooperation could be in the academic and R&D sector but also in the economic field.

Despite the well known problems in global markets, Austrian companies have every intention not only to maintain their existing relationships with Korean companies, but also to expand progressively into those segments of Korean industry that will propel the growth of this country, including all segments of the Korean government`s "green growth" strategy. Hydro-electrical power, biotechnology, solar- and wind-energy technologies are just some of the sectors in which Austrian suppliers can intensify their cooperation with Korean partners.

As an example I would like to mention the fact that an Austrian company is providing state-of-the-art turbines for a huge tidal power-generating plant near Incheon. Hydropower is Austria`s major electricity source. The use of hydropower as a clean and emission-free way of generating electricity had become a tradition several decades ago, today hydropower covers altogether about three-quarters of electricity generation in Austria, its share of the total energy input amounts to about 12 percent. Additionally to many power stations on our major rivers we also have numerous storage power stations in the Alps. This background explains the success of Austrian companies in selling hydropower technology solutions to many countries in all parts of the world.

While the Korean government is substantially increasing the development of alternative energies and plans to raise spending on alternative energy sources considerably in the coming years, we are considering this development as a positive step for the country, but also as a big opportunity for cooperation between Korea and Austria. Just as many people in Korea associate classical music as something typically Austrian, we have good reasons to promote advanced environmental technologies as something typical for our country. We are ready to increase our cooperation with Korea as an ever-growing market for environmental technology "Made in Austria." The Commercial section of the Austrian Embassy assists in establishing direct contacts with the large number of Austrian companies in the renewable energy sector.

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To ensure that our companies seize these additional opportunities, Austria has set up the International Environmental and Energy Technology Network. Since 2003, environmental technology has been a focal point of the AUSTRIAN TRADE program as a key sector within the framework of the so called Internationalization Initiatives.

This comprehensive program, featuring market reports, a network of international experts, plus targeted environmental technology events led to the creation of the NUI Network which was intended to ensure that Austrian companies in this sector receive long-term support in order to cooperate successfully with their foreign partners. The NUI is a comprehensive information centre which aims to position Austrian environmental technology on the global stage.

The Austrian federal government`s Energy and Climate Fund has also played a significant role. This fund has been vital for research and development to ensure that Austrian technology stays ahead of competition, reinforcing the position of Austria`s leading technology companies and enabling them to expand.

The direction is clear: more renewable energy and, in return, a reduction in greenhouse gases and energy consumption.

Energy-climate protection

The Umbrella Organization on Energy-Climate Protection, a working group within the Austrian Federal Economic Chamber stands firm to the Kyoto goals. The Kyoto Protocol has made climate protection a key target of our societies, and an obligatory component of EU legislation. An economy-oriented approach to climate protection is a top priority.

The umbrella organization is the industry`s official representation and offers a platform for associations belonging to the sectors commerce, crafts and services and industry within the Austrian Economic Chamber, as well as associations dedicated to a business-oriented implementation of renewable energy and climate protection.

In this field, the Umbrella Organization sees itself as first-stop-shop of the Austrian economy.

The Umbrella Organization Energy-Climate Protection, as a hub and driving motivator, is founded on the following guiding principles:

- Business-oriented implementation of climate-protection measures in Austria and support of export activities (also in the context of "flexible instruments") are top priorities for enhancing and developing Austria`s position as business location.

- Economically attractive technologies contribute to increasing the share of renewable energies in Austria and the European Union.

- The activities of the umbrella organization promote the utilization of renewable energy sources and improve the understanding of the role of renewable raw materials.

- Ecologically and economically efficient measures to enhance energy efficiency also help reduce specific energy consumption in Austria.

- Creation of added value in Austria is of particular importance.

- Support of energy technologies contributes to achieve a sustainable economy.

Renewable energy

Austria is one of the world`s leading countries in the field of renewable energy. There are many regional research developments and companies focusing on renewable energy sources. Specific networks and clusters enable companies to share knowledge and resources effectively.

The term renewable energy applies to energy produced from sustainable sources, which is considered inexhaustible by generally accepted standards. These regenerative sources may take the form of wind and water energy, tides, sunlight, solar heat and geothermal power. Renewable energy can be harvested from natural environmental processes and then used for technical purposes. In the physical sense, energy is not renewed, but is instead constantly generated by the stated sources.

The increasing use of regenerative energy sources and the application of environmentally-friendly technologies provide significant contributions to sustainable development. In addition, they provide for enhanced well-being and better standards of living for future generations. Renewable energy sources are the way of the future - clean, environmentally friendly and inexhaustible.

Competence from Austria

Austria is a leading contributor to alternative energy production worldwide. The number of renewable energy providers in Austria is traditionally very high in comparison with other European countries. Since the beginning of the 1980s, the proportion of renewable energy providers as part of the gross energy consumption has constantly stood at over 20 percent. Until now the most significant renewable energy source has been hydropower, with a share of over 11 percent. The remaining share of around 11 percent is accounted for by the use of biological fuel (mainly biomass).

Revenues from all renewable energy sources are increasing. Particularly impressive is the high number of SMEs in Austria in the field of biomass and bioenergy. This field is the second leading area in renewable energy in Austria after hydropower. Additionally there are many clusters and associations which are intensively involved with renewable energy from biomass and bio fuels, such as the Austrian Bioenergy Center and the Austrian Biomass Association.

There are numerous institutes and companies in Austria in the field of research and development for renewable energy. Especially well-known are the Austrian Energy Agency in Vienna, the inter-university Institute for interdisciplinary research and development in Klagenfurt, the Joanneum Research GmbH (particularly the Institute for Energy Research). Other institutes at Austrian universities are also renowned - especially the Technical University in Graz with its Institute for Thermal Engineering and the Institute for Process Engineering, and the Technical University in Vienna with its Institute for Process Engineering, Fuel Engineering and Environment Engineering.

Renewable energy sources have already received widespread recognition and significance in Austria. Many regional research centers and companies with a focus on renewable energies are already well-established. Special networks and clusters cater for the exchange of knowledge and resources. The numerous production developments in Austria make it clear that increasing numbers of companies will dedicate themselves to renewable energy and that the market will experience rapid growth.

International Renewable Energy Agency

"Access to renewable sources of energy and modern energy services is a key ingredient of human security and a precondition for poverty eradication, development and well-being," said Michael Spindelegger, Austria`s Federal Minister for European and international Affairs when presenting Austria`s candidacy to host the seat of International Renewable Energy Agency.

Together with more than 50 states from all regions of the world, including the Republic of Korea, Austria signed the treaty establishing a new international organization for the promotion of renewable energies in January 2009. IRENA is the first international organization focusing exclusively on renewable energy forms. The agency will advise its member states on adjusting their general conditions, on developing competencies, on facilitating financing, and on improving technology and knowledge transfer for renewable energies.

Austria has always been actively engaged in the promotion of stronger international cooperation in the area of renewable energy, and has supported the German initiative for the establishment of IRENA from the very beginning. During the negotiations, Austria worked toward making sure that the establishment of IRENA would not lead to the duplication of mandates and activities of existing organizations. Moreover, Austria has proposed - as stipulated in the government program - establishing the seat of the new international agency in Vienna.

In her speech at the founding conference, Ambassador Irene Freudenschuss-Reichl pointed out to the eight international organizations with energy mandates, which are already based in Vienna, and to the 129 diplomatic missions in Vienna, whose work has provided them with extraordinary expertise on energy issues. (These eight international organizations with energy mandates are UNIDO, IAEA, OSCE, IIASA, OPEC, OPEC Fund, Energy Community Secretariat - ECS, Renewable Energy and Energy Efficiency Partnership - REEEP.)

Austria is convinced that by establishing the agency in Vienna it would be possible to create important synergies.

For several years now, energy has also been one of the priorities of the Austrian Development Cooperation, with a particular focus on renewable energies and energy efficiency. For ten years, Austria has also been supporting the international dialogue on energy for the benefit of sustainable development through the Global Forum on Sustainable Energy.

Based on its national priorities, Austria will be participating in the new agency especially in the areas of biomass, hydroelectric power, and solar heating.

Since renewable energy sources make up almost 27 percent of Austria`s total energy supply, the Commercial Section of the Austrian Embassy will concentrate its efforts in future to the exchange of information and know-how with Korean enterprises. A large number of Austrian companies will visit Seoul in 2010 and present their state-of-the-art technologies in the field of hydropower, biomass, biogas, biofuels, geothermal energy, solar energy and wind energy. Interested Korean companies may contact the Embassy for further information on participants as well as tentative program at seoul@austriantrade.org