Ministry of Environment to Support 5 Trillion Won Bank Funding for Greenhouse Gas Reduction in Industry

[Asia Economy Sejong=Reporter Dongwoo Lee] The Ministry of Environment announced on the 27th that it will support the reduction of greenhouse gases in the industrial sector by raising 5 trillion won in bank funds in collaboration with the Korea Environmental Industry & Technology Institute.

As part of the newly established "Green Policy Finance Activation" project this year, participating banks will be recruited at the Korea Environmental Industry & Technology Institute from the 28th of this month until the 11th of next month.

The Green Policy Finance Activation project is a "secondary interest subsidy" program in which the government and banks each bear half of the cost to allow companies to borrow money at low interest rates for process improvements that drastically reduce greenhouse gases. Under this secondary interest subsidy scheme, funds raised by participating banks are lent to companies, and the government supports part of the loan interest, thereby reducing the individual companies' interest burden.

This year's budget totals 14.25 billion won. The participating banks selected through the recruitment announcement plan to raise 5 trillion won in loan principal. The main beneficiaries are companies subject to greenhouse gas emission permits and target management systems, and based on the analysis of this year's project performance, plans to expand support targets from next year onward will be considered.

Details about the "Green Policy Finance Activation Project," including the recruitment of participating banks, can be found in the project announcement and guide on the "Environmental Policy Fund Support System."

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