Ministry of Environment and NongHyup Financial Group Join Forces to Promote Green Finance

Signing of a Business Agreement for the Promotion of Green Finance

Minister of Environment Cho Myung-rae. Asia Invitation./Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Moon Chaeseok] The Ministry of Environment signed a 'Business Agreement for the Activation of Green Finance' with NongHyup Financial Group and the Korea Environmental Industry & Technology Institute on the morning of the 18th at the NongHyup headquarters in Jung-gu, Seoul.

The agreement was made to activate green finance in a situation where the responsibility and role of finance are emphasized for the successful implementation of the Green New Deal and the 2050 carbon neutrality goal.

The three organizations plan to promote cooperative projects in the field of green finance to support the green transition across society and the economy.

The Ministry of Environment will establish an institutional foundation for the activation of green finance and support NongHyup Financial Group's expansion of investments in green sectors and environmentally responsible investments.

NongHyup Financial Group will expand investments in green sectors and environmentally responsible investments, support financing for companies excelling in green management, and actively participate in the Ministry of Environment's process of establishing green finance systems.

The Korea Environmental Industry & Technology Institute plans to support by providing information for NongHyup Financial Group's environmentally responsible investments and financial support for outstanding green companies.

Meanwhile, the Ministry of Environment is focusing on establishing an institutional foundation so that green finance can be established as a socio-economic principle.

Clear classification criteria for green economic activities, which form the basis of the green finance system, will be prepared by June next year, and gradual advancement will be pursued.

In addition, to activate green bonds with high market ripple effects, a green bond guideline will be prepared within this year.

Furthermore, to activate environmentally responsible investments by financial institutions and others when making investment decisions, a standard evaluation system will be established, and after pilot evaluations next year, it will be disseminated.

Institutional improvements are also underway to expand the provision of environmental information necessary for companies and others when financial institutions make environmentally responsible investments.

Minister of Environment Cho Myung-rae stated, "Taking this agreement as an opportunity, we will prepare green finance policies so that green finance can act as a key means to achieve the green transition throughout our society."

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