[Session 3]
Resilient Economies and Inclusive Societies: Empowering People for the Achievement of Sustainable, Balanced and Inclusive Growth
- Promoting Environmentally Sustainable (‘Greener’) Growth

Mr. Chairman,

Without environmental resilience, we will not be able to achieve the resilient economies, societies, and institutions we discussed earlier today. In spite of a clear roadmap to Paris agreed in Warsaw, however, the climate change negotiations still remain an uphill struggle. The OECD can and should play a significant role in moving the process forward.

First, the OECD’s comparative advantage in evidence-based, multi-disciplinary research on key policy areas can be instrumental in providing an analytical foundation for both enhancing climate actions before 2020 and leading to an effective post-2020 climate regime. In this regard, we welcome the OECD Statement on Climate Change and look forward to rigorous follow-up.

Second, the OECD should play a leading role in developing a flexible, practical, comprehensible, and durable climate change regime. We encourage the OECD to strengthen its work on the six main pillars of the post-2020 climate regime, with a focus on analyzing cost-effective policies and creating an enabling environment for the private sector’s participation. The OECD can also contribute to facilitating the negotiations by reinforcing its research and analytical work on the role and architecture of climate finance and various options for making climate finance contributions.

Finally, the OECD can provide support in designing and implementing national policies, especially in regard to shifting investment priority to low-carbon, climate-resilient infrastructure, by strengthening project-based work on climate finance including early operationalizing of the Green Climate Fund (GCF).

Mr. Chairman,

During the last five years, Korea has initiated various financial and environmental policies to move towards a green economy. We have also worked closely with other countries and international organizations to promote the values and benefits of green growth across the globe. Establishing the GGGI and hosting the GCF in Korea are the fruits of these efforts.

Yet our achievements in this area fall short of full satisfaction, especially when compared to the level of investment. In particular, progress is insufficient in fostering a market-based industrial ecosystem in the energy sector, partly due to the government-led and supply-driven policy. Reflecting various needs of SMEs and socially vulnerable groups has also been a challenge.

Building on our past experience, we are now working on the Second Five Year Plan for Green Growth. The plan will target key areas for tangible and substantial results, strengthen the role of market and the private sector, and reinforce the ongoing efforts to reflect the balance of economic, environmental and social dimensions.

On a global front, we will continue to faithfully implement a roadmap to achieve our pre-2020 mitigation commitment and work on the post-2020 contribution, the preparation process for which is already underway.

Mr. Chairman,

Due to the growing number of natural and man-made disasters, strengthening national resilience and responsiveness is becoming increasingly important, as these may affect a country’s competitiveness and sustainable development. In this regard, Korea finds the OECD recommendations on Governance of Critical Risks in 2014 both timely and relevant.

After the painful experience of the recent tragic ferry incident in Korea, we now acutely realize the importance of the governance of critical risks. There are several key messages anchored in the recommendations which I would like to highlight and share with you today, based on our experience.

First, a national strategy with finance schemes for the governance of critical risks is a must, not an option. The division of responsibilities among government agencies should be clearly set out, while the efforts of all other relevant stakeholders, including public-private partnerships, are secured.

Second, the national strategy should be implemented with the robust surveillance of the government, regular exercises and reviews. This should also be subject to periodic monitoring and revision. The ferry incident in Korea was mainly due to our failure in this area.

Third, a post-disaster management system is necessary to strengthen the resilience of the society as a whole. This entails supporting not only the physical loss, but also the psychological damage incurred in the communities.

Korea will continue to improve its governance of critical risks from the perspective of “whole-of-government” as well as “whole-of-society.” At the same time, we will cooperate with the OECD in developing a toolkit to facilitate the implementation of the recommendations by sharing the lessons learned. Thank you.

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