South Korea plans to invest $313 billion in green financing to support carbon offset projects, aiming to slash greenhouse gas emissions by 40% from 2018 levels by 2030.
The Financial Services Commission (FSC) announced this decision, involving a future energy fund worth $8 billion initiated by the banking sector. By 2030, state-run financial institutions will invest $313 billion in low-carbon facilities, eco-friendly products, and technology support, marking a 67% increase from the last five years.
These measures are expected to reduce 85.97 million metric tonnes of greenhouse gases by 2030, fulfilling nearly 30% of the government’s emission reduction target. Additionally, private sector involvement includes a $9 billion investment in renewable energy facilities, with the Korea Development Bank contributing $1.8 billion and five major banks adding $7.2 billion.
The FSC highlighted the challenge of funding renewable energy projects due to lengthy loan processes, thus emphasising the role of the future energy fund in providing strategic capital financing. This initiative aims to boost the share of renewable energy in the power generation mix from 9.2% to 21.6% by 2030.
Moreover, the government and banking industry plan to invest $9 billion by 2030 in climate technologies, including carbon capture.
