S. Korea to provide US$315bil in policy loans for carbon emission cut

Seoul has pledged to reduce its greenhouse gas emissions by 37% from business-as-usual levels. — Reuters

SEOUL: South Korea’s financial regulator unveiled an ambitious plan yesterday to provide 420 trillion won (US$315bil) in policy loans by 2030 to help reduce greenhouse gas emissions.

Seoul has pledged to reduce its greenhouse gas emissions by 37% from business-as-usual levels.

“There exist concerns that the global competitiveness of our exporters may dwindle should we fail to take appropriate steps to meet the increasing emissions-related regulations in other countries,” the Financial Services Commission (FSC) said.

The plan was unveiled in a meeting with the heads of five major banks here, which was also attended by the minister of environment and head of the Presidential Commission on Carbon Neutrality and Green Growth.

In addition to the policy support, the state-run Korea Development Bank and five commercial banks will create a nine trillion-won fund to help finance the construction of new green energy sources, according to the FSC.

The five commercial banks, together with another policy lender Industrial Bank of Korea, will create an additional nine trillion-won fund to be invested in the development of new green technologies, it added.

“The measures announced will mark a very meaningful first step in dealing with climate change through cooperation between the government, policy lenders and banks,” FSC chairman Kim Joo-hyun told the meeting, according to the financial regulator. — The Korea Herald/ANN