Korea unveiled on Thursday its goal of grabbing a 10 percent slice in the world’s green energy industry in 2020 by cultivating 50 small and mid-sized enterprises specialized in the rapidly growing market.
It also aims to increase the country’s energy efficiency by 12 percent by then and curb the energy sector’s greenhouse gas emissions by 15 percent based on business-as-usual levels over the same period.
The plans are part of a 10-year framework for research and development in energy, which entails accelerating technological advancement, creating a symbiotic environment between large firms and SMEs, upgrading R&D schemes and enhancing infrastructure.
To that end, the government said it would more than double its R&D budget on four areas -- renewable energy, electricity and atomic power, efficiency and emissions cut, and resources development.
For the 35.5 trillion won ($31.3 billion) package, the government will bring in 18.2 trillion won over the next 10 years from its coffers and the remainder from the private sector.
“The roadmap reflects the nation’s need for comprehensive, systemic strategies to secure a competitive edge in the energy industry in the wake of a ‘global green race,’” the Ministry of Knowledge Economy said in a statement.
“It includes technical measures to tackle challenges in the booming field, such as bolstering growth engines, addressing climate change and improving energy security.”
Under the plan, the ministry will fund R&D programs in such areas as solar and wind power and smart grids. It also plans to help companies with collaborate on technology, speedy commercialization and exports.
The ministry will increase subsidies for SMEs to 50 percent of its energy R&D budget by 2020 from last year’s 20 percent.
If executed as planned, the plans will bring about 202 trillion won in exports, 59 trillion won in domestic demand, 261 trillion won in value-added and 914,000 jobs by 2020.
The world’s leading and emerging economies have been upping the ante for clean energy and resources as they scramble to penetrate sunrise markets while boosting mineral reserves.
Korea is also engaged in resources search at home and abroad as Asia’s fourth-largest economy strives to shake off its reliance on energy imports and seeks leadership in the global green industry.
The government has been promoting its “low carbon, green growth” initiative. It aims to curb 30 percent of emissions below projected levels by 2020.
Korea, the world’s fifth-largest oil importer also wants to ratchet up the ratio of renewable energy of the total consumption to 11 percent by 2030 from 2.4 percent in 2008, for which the latest data available.
