Korea Advances to 4th Board of Directors of Green Climate Fund... A Stepping Stone for Companies' Overseas Expansion

3-Year Term Until 2024... Opportunity to Expand ODA Projects for Enterprises and Institutions in Developing Countries

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, delivering a welcome speech at the Green New Deal special session of the P4G (Partnership for Green Growth and the Global Goals 2030) Summit held on May 25 at Dongdaemun Design Plaza (DDP) in Seoul. Photo by Ministry of Economy and Finance

[Sejong=Asia Economy Reporter Moon Chaeseok] South Korea has secured the right to serve an additional three years on the board of directors of the Green Climate Fund (GCF) until 2024.

On the 14th, the Ministry of Economy and Finance announced that at the UN Framework Convention on Climate Change Conference of the Parties (COP26) held in Glasgow, UK, until the 12th (local time), the GCF officially confirmed the list of the 4th board of directors with a three-year term from next year to 2024. South Korea, along with China, Pakistan, Saudi Arabia, Iran, and the Philippines, was appointed as a board member representing the Asia-Pacific region. South Korea has served on the board during the 1st term from 2013 to 2015 and the 3rd term from 2019 to 2021. By securing the right to serve an additional three years until 2024, the Ministry explained that South Korea can continue to play a consistent role in climate change-related matters in the international community. The Ministry of Economy and Finance stated, "Since last May, we actively campaigned for the election by holding virtual bilateral meetings with regional countries including Pakistan, the chair country of the Asia-Pacific region, as well as China, the Philippines, Iran, and Bhutan, resulting in the successful appointment as a 4th term board member."

The GCF, the world's largest climate fund, grants its board members the authority to approve climate response projects in developing countries, which involve approximately $20 billion (about 23.6 trillion KRW) in funding, and to make various policy decisions at the board meetings held three times a year. The Ministry of Economy and Finance expects that South Korea's influence and voice will strengthen further as it continues to serve on the 4th board, following the 3rd term, especially as South Korea is the host country of the GCF headquarters. Since the Korean government decided to expand Green ODA (Official Development Assistance) last July, it is also expected to be advantageous in increasing the participation of companies and institutions in climate change response projects in developing countries through GCF projects.

The Ministry of Economy and Finance said, "Following the appointment of Koreans as Secretary-General of the Asian Development Bank (ADB) and Director of the Asian Infrastructure Investment Bank (AIIB) in February, the successful reappointment to the 4th GCF board reconfirmed South Korea's elevated status," adding, "The government will continue to strengthen cooperation with international organizations such as the GCF, contribute in line with the nation's stature, and actively participate in international discussions on climate change response."

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