Ministry of Environment to Provide Total 1.2 Billion KRW for Greenhouse Gas Reduction Equipment Installation to Small and Medium Enterprises... Considering Preferential Loan Interest Rates

[Sejong=Asia Economy Reporter Joo Sang-don] The Ministry of Environment has decided to promote various support projects, starting with providing 50% of the installation costs for greenhouse gas reduction facilities to help small and medium-sized enterprises (SMEs) and mid-sized companies achieve carbon neutrality.

The Ministry of Environment announced on the 15th that it will support a total of 1.2 billion KRW, which is 50% of the installation costs for greenhouse gas reduction facilities, to 12 companies including Igeon Energy, selected in the first round through a public recruitment of eligible management companies from February 9 to March 22 this year.

The 12 selected management companies will reduce 3,193 tons of greenhouse gases annually by replacing old facilities with high-efficiency equipment, such as compressors and transformers, which have high replacement costs, or by installing waste heat recovery facilities.

Following the selection of the first round of supported management companies, the Ministry of Environment has been conducting an additional public recruitment from the 9th of this month until the 11th of next month to select the second round of supported management companies.

Additionally, to support the greenhouse gas reduction efforts of small and medium-sized management companies, starting in the second half of this year, if companies exceed their greenhouse gas reduction targets in sectors such as waste, industry, transportation, and buildings, the Ministry plans to purchase the excess reduction amounts within the budget, focusing on companies with significant reduction achievements. While allocated companies participating in the greenhouse gas emissions trading system can sell their excess reductions in the emissions market and generate profits, management companies have had little incentive to continuously reduce greenhouse gases as they received no compensation even if they exceeded reduction targets.

Moreover, the Ministry plans to actively consider sharing each management company’s reduction targets and performance information with financial institutions so that these institutions can offer preferential loan interest rates when providing financing to management companies.

Geum Han-seung, Director of Climate Change Policy at the Ministry of Environment, said, "Financial support is necessary for small and medium-sized management companies to reduce greenhouse gases on their own," adding, "We plan to continuously expand support so that these management companies can actively reduce greenhouse gases and participate in carbon neutrality efforts."

This content was produced with the assistance of AI translation services.