Economic Development and Environmental Sustainability
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2016 42th Issue: Youn Yongmun: success guarantee system makes innovative environmental technology rapidly popularized

Youn Yongmun,CEO of Daegu Environmental Corporation, pointed out that South Korea now produces about ten thousand tons of sludge a day, and produced roughly ten thousand tons of municipal sludge in 2014. Most of this was transferred into power generation fuel. Since the 2012 ban on Marine pollution, about 70% of the sludge has been turned into power generation fuel.

Innovative environmental technology can be rapidly popularized in South Korea because of the success guarantee system. The success guarantee system is the state recognized environmental technology enterprise. National and local governments will pay enterprise project funds and extra money. After a certain period, the government will examine the stability of the enterprise¡¯s environmental protection facilities of environmental new technology. This system enables local government members to minimize the risk of taking the responsibility for the failure of projects, and can improve the enthusiasm of civil servants to use environmental new technology to solve the environmental problems of their jurisdictions. The state recognized environmental technology enterprises, for their part, can directly recommend  proceed with projects without tedious bidding competition. The central government can promote the development of new technology for environment, strengthen the international competitiveness of environmental protection industry, and speed up resolution of the local government environmental protection problem by advancing this system. In the process of success guarantee system, the most important thing is the assessment and evaluation. Facilities of projects of success guarantee that systems will be examined the performance by experts in the six to nine month trial run period. This will determine whether companies to completed the agreed upon indexes of running cost. If not able to meet the performance targets, facilities must be adjusted within a year to meet the targets. If facilities meet the performance targets, payment will be made within one year; if it fails to do so, the construction unit must be responsible for the demolition and restoring facilities to the previous situation. Therefore, only companies who have confidence in its own technology, can use success guarantee system for project proposal.

The first trial of the Success Guarantee System is the capital city landfill dry fuel facilities. In 2009, South Korea's Capital Landfill Commune, which operates directly under the Environment Ministry, put forward the plan of processing one thousand tons of municipal sludge daily. The EnbioCons Co.,LTD. guaranteed to South Korea's Environment Ministry they would process one hundred tons. If the validation project succeeded, they would add nine more processing lines, processing one thousand tons daily. The EnbioCons Co.,LTD. invested 33 million RMB, constructing a dry fuel production line of one hundred tons, and after proving its stability, set up  a program to process one thousand tons daily.

On March 27, 2016, in effort of both China and South Korea¡¯s city government and industry organizations,hosted by the China environmental science society, international energy conservation environmental protection association, and Daegu Environmental Corporation, undertaken by NS UH, HPCA and Korean Enbio co., LTD ," Chinese  and South Korean urban environment governance  technology and project cooperation meeting ,which put forward using from South Korea's guarantee of  success system for reference to solve the bottleneck for the development of energy conservation and environmental protection industry in China, to implement the PPP pattern promotion conference "was held in Beijing.

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