South Korea has promised to allocate a substantial amount of money to address climate change. They have revealed a $313 billion plan for eco-friendly financing. The goal of this plan is to reduce greenhouse gas emissions by 40% from 2018 levels by 2030.
Key Elements of the Plan:
- Policy Loans: The government, along with major banks like Korea Development Bank (KDB), will offer 420 trillion won ($313.4 billion) in policy loans. These loans will encourage companies to shift to low-carbon production methods.
- Green Energy Fund: KDB and other major banks like Woori Bank and Kookmin Bank will establish a dedicated green energy fund worth 9 trillion won ($8 billion). This fund will specifically support the development of new green energy facilities.
- Focus on Renewable Energy: The plan prioritizes increasing the proportion of renewable energy in the power generation mix from 9.2% to 21.6% by 2030. The Korea Development Bank will contribute $1.8 billion, and five major banks will invest an additional $7.2 billion in renewable energy projects.
- Future Energy Fund: Acknowledging the difficulties in financing renewable energy projects due to lengthy loan processes, the Financial Services Commission (FSC) created a future energy fund. This fund will provide strategic capital financing to accelerate the shift towards renewable energy.
- Investment in Climate Technologies: The government and banking industry will collectively invest $9 billion in climate technologies by 2030. This investment covers carbon capture technologies, which are essential for reducing greenhouse gas emissions.
The $313 billion eco-friendly financing plan is expected to make a significant contribution to South Korea’s emission reduction targets. By 2030, these measures are predicted to lead to a reduction of 85.97 million metric tonnes of greenhouse gases, fulfilling almost 30% of the government’s ambitious goal.
This effort demonstrates South Korea’s strong dedication to addressing climate change and transitioning to a more sustainable future. Through collaboration with the banking sector and the implementation of a comprehensive approach, South Korea sets the stage for a more sustainable future.
