On March 19, 2024 (Tuesday), the Financial Services Commission (FSC), chaired by Chairman Kim Joo-Hyun, held a meeting with Private Sector Chairman Kim Sang-hyup of the Presidential Commission on Carbon Neutrality and Green Growth (hereinafter referred to as “Carbon Neutrality and Green Growth Commission”) and Minister Han Wha-jin of the Ministry of Environment (ME). They announced the ‘Financial Support Expansion Plan for Climate Crisis Response’ (FSC) and the ‘Green Investment Expansion Plan for Accelerating Transition to Low Carbon System’ (ME), during a meeting with bank presidents and policy finance institution heads.

The Seoul Energy Dream Center, where the meeting was held today, is a representative zero-energy building constructed on the former Nanji landfill site, which was transformed into an ecological park. It is Korea’s first energy-independent public building completed in 2012. Designed in the shape of a windmill, the building saves more than 70% of the energy needed for the building and is operated using renewable energy sources such as solar power and geothermal energy.

* Zero Energy Building (ZEB): A green building that minimizes the energy burden required for the building and utilizes new energy and renewable energy sources to minimize energy consumption

Chairman Kim Joo-hyun emphasized, “The unprecedented climate change we face today is a matter that must be solved not only for the competitiveness of our companies, but also for the future generations.” He announced that through the ‘Financial Support Expansion Plan for Climate Crisis Response,’ three major support measures have been established.

First, it was decided to strengthen the role of policy finance institutions (Korea Development Bank, Export-Import Bank of Korea, Industrial Bank of Korea, Korea Credit Guarantee Fund, Korea Technology Finance Corporation) for responding to the climate crisis by supplying a total of KRW 420 trillion in policy finance by 2030. 

Second, through bank investments, a new ‘Future Energy Fund’ totaling KRW 9 trillion will be created to support the smooth procurement of KRW 160 trillion of financial demand related to the expansion of renewable energy facilities. 

Third, around KRW 9 trillion will be invested in the climate technology sector for the development of future food resources. 

Lastly, along with providing financial support for climate crisis response, efforts will be made to revise regulations to activate support from private finance. 

Minister Han Wha-jin stated, “In order for companies to respond to new environmental trade barriers and to lead the global market in the green emerging industries, green investment must be made in a timely manner.” The Minister announced the four implementation strategies for expanding green investment through the ‘Green Investment Expansion Plan for Accelerating Transition to Low Carbon System.’

First, it was decided to enhance and expand the scope of application of the K-Taxonomy that provides principles and standards for green economic activities. 

Second, it was decided to establish the foundation for activating green investment. To address uncertainties regarding green investment from passive companies and financial institutions due to lack of expertise in carbon neutrality and concerns about greenwashing, standards and regulations will be established to help resolve uncertainties and support decision-making on green investment. 

Third, with the goal of expanding private green investment to a total of KRW 30 trillion by 2027, government support for green bonds, loans, and other financial instruments will be significantly expanded. 

Fourth, efforts will be made to advance the emissions trading system. The plan is to establish the 4th basic plan for the emissions trading scheme to achieve the national greenhouse gas reduction target, and to promote the gradual introduction of financial investment products to activate the emissions trading market. With emissions-linked financial products, indirect investment by third parties will be possible, leading to expectations of rational emission pricing formation and increased trading volume. In addition, there are plans to introduce delegated trading to increase trading convenience and expand third-party participation.

Minister Han Wha-jin emphasized, “The global green market is expanding, with industries centered on environmental values such as carbon neutrality.” She added, “The expansion of private green investment plays an important role in securing the competitiveness of our industries and transitioning to a low-carbon system.” She requested policy finance institutions and commercial banks to continue showing interest in and supporting green investments.

For further information, please contact the Public Relations Division. 

Contact person: Gina Lee, foreign media spokesperson

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