When South and North Koreas join hands to carry out the clean development mechanism (CDM) project to reduce greenhouse gas emissions, the expected economic effect will reach 112 trillion won (US$96.72 billion), according to a recent report.
Jang Woo Seok, a research fellow at Hyundai Research Institute, released a report called “South-North Korea Renewable Energy CDM Cooperative Project’s Potentials” on Nov. 30. Defined in the Kyoto Protocol, the CDM is a project in which a developed country helps a developing country to cut greenhouse gas emissions by investing capital and technology.
The CDM Executive Board then issues certified emission reductions (CERs) to the developed country according to emission reduction achieved by CDM projects in the developing country.
North Korea is currently working on a total of eight CDM projects with Czech and British companies. Jang predicted that North Korea will secure an annual power production potential of 8,915 tera-watt-hours (Twh) when South Korea transfers its renewable energy generation technology to North Korea
He said North Korea can secure 8,902 Twh in photovoltaic power generation, 8 Twh in wind power generation and 5 Twh in small hydropower generation annually.
Accordingly, South Korea can secure annual CERs of 10.77 billion ton worth 111.66 trillion won (US$96.43 billion).
Jang said, “Since North Korea has coal and hydroelectric power-based energy supply and demand structure and suffers from chronic power shortages, it is well positioned to launch CDM projects. Therefore, we should actively push ahead with the projects for domestic companies which are having difficulties in securing CERs.”
He also added, “It will also help the government’s “Green Détente” plan. At the moment when the competition is accelerating with neighboring countries, such as China and Russia, for North Korea’s development, we can continue the momentum of conversation between the two Koreas with CDM projects.”