South Korea has announced a groundbreaking 420 trillion won or $313 billion green financing initiative aimed at cutting greenhouse gas emissions by 40% from 2018 levels by 2030. The comprehensive plan involves major collaborations between the government and leading banks.
Key Points:
- Policy Loans: In partnership with institutions like Korea Development Bank (KDB), the government will provide 420 trillion won ($313.4 billion) in policy loans to help companies adopt low-carbon production.
- Green Energy Fund: A new $8 billion fund, backed by KDB and major banks like Woori and Kookmin, will finance the construction of green energy facilities.
- Renewable Energy Push: The plan aims to increase renewable energy’s share in power generation from 9.2% to 21.6% by 2030, with significant investments from KDB and other banks.
- Future Energy Fund: To accelerate financing for renewable energy projects, the Financial Services Commission has created a strategic fund for faster capital deployment.
- Climate Tech Investment: A joint $9 billion investment will focus on technologies like carbon capture to further reduce emissions.
By 2030, state-run financial institutions, including Korea Development Bank (KDB), the Industrial Bank of Korea and Export-Import Bank of Korea are set to supply a total of 420 trillion won designated for investments in low-carbon facilities, the production of eco-friendly products and technology support. The volume of this financial support represents a 67 percent increase compared to the last five years.
Additionally, the banking industry is set to contribute by establishing a future energy fund valued at 9 trillion won. This fund aims to bolster the development and expansion of renewable energy infrastructure.
“The unprecedented challenge of climate change we face today demands urgent action, not only to enhance the competitiveness of our companies but also to secure a sustainable future for generations to come,” FSC Chairman Kim Joo-hyun said at the meeting. “Through this collaboration, the government, state-run financial institutions and banks have embarked on a meaningful step toward tackling the climate crisis.”
These efforts are expected to reduce emissions by 85.97 million metric tonnes, meeting nearly 30% of South Korea’s climate goals. The plan showcases the nation’s strong commitment to a sustainable, low-carbon future.
Source: Korea Times
