FSC Chairman, regulators mull climate change fund

[Photo by MK DB]

South Korean financial regulators are poised to build a joint fundraising program that will engage both public and private financial institutions. The move is a response to the pressing issue of global climate change and all stakeholders are invited to be part of the solution.

Financial Services Commission (FSC) Chairman Kim Joo-hyun held a meeting to discuss an emergency response fund on Tuesday with participants from government agencies, banks, and policy research institutions which included Environment Minister Han Wha-jin.

“Climate change today is one we have never experienced before and is an urgent challenge to be addressed as we strive to make companies more competitive and protect future generations from its damaging effects,” Kim said in explaining the purpose of the fundraising.

[Photo by MK DB]

The financial authorities will offer financing support worth 420 trillion won ($313.5 billion) by 2030. The funds will be provided by state-owned financial institutions such as the Korea Development Bank to support eco-friendly corporate projects, such as shifts toward lower-carbon emitting processes.

As part of the fundraising initiative, a so-called Future Energy Fund totaling 9 trillion won will be formed via bank contributions. An additional 14 trillion won in loans will bolster investments in building renewable energy generation facilities, such as solar and wind power plants.

The financial authorities also said in a statement that a climate technology fund will also be set up with contributions from the banking sector, whose funds will provide funding support to cultivate promising companies in the field of climate technologies.