Saneun to Jointly Promote Projects with Green Climate Fund... Secures $1.2 Million

Support for Innovative Climate Technology Companies Entering Four New Southern Countries

[Asia Economy Reporter Jin-ho Kim] Korea Development Bank announced on the 5th that it officially received approval for $1.2 million in project preparation funds for the "Support Program for Overseas Expansion of Climate Technology Holding Companies," which it is promoting as a Green Climate Fund (GCF) accredited entity as of the 1st. The project preparation funds are one of the GCF’s accredited entity support programs for individual projects.

The GCF accredited entities are organizations that jointly implement climate change response projects in developing countries with the GCF. Including Korea Development Bank, a total of 103 institutions worldwide are registered as accredited entities.

Despite the difficult conditions caused by COVID-19, Korea Development Bank, in cooperation with the Ministry of Economy and Finance, held online seminars with local related organizations and, through about seven months of multilateral consultations, secured letters of support for the project from government ministries of the four target countries in the New Southern region (Indonesia, the Philippines, Cambodia, and Laos).

Korea Development Bank is currently promoting the main project aiming for GCF board approval next year and plans to establish a $100 million climate fund to support the entry of promising domestic climate technology companies into the New Southern countries.

The "Support Program for Overseas Expansion of Climate Technology Holding Companies" is the first climate technology development and transfer project for developing countries attempted by the GCF following the recommendations of the UN Framework Convention on Climate Change Technology Executive Committee. The GCF plans to officially introduce this project at the 26th Conference of the Parties (COP26) to the UN Framework Convention on Climate Change, held in the UK this November, and actively seek cooperation from global key stakeholders.

Korea Development Bank explained that the approval of this support fund is significant as it reflects the strong cooperative will of the representatives of both Korea Development Bank and the GCF. A Korea Development Bank official said, "This year is the first year of the official implementation of the Paris Agreement, marking an important turning point in global climate change response," adding, "Amid fierce international climate diplomacy competition, the promotion of this project is expected to greatly contribute to securing South Korea’s global climate finance leadership."

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