South Korea plans to invest 450 trillion won ($309bn) in green finance by 2030, acting president and prime minister Han Duck-soo said on 23 December.
The country is also "actively encouraging private investment by upgrading the Korean Green Taxonomy system", Han added. The taxonomy is technical legislation that classifies the industrial carbon and environmental footprint for investors. It aims to promote green finance and prevent ‘greenwashing', with the aim of achieving a sustainable circular economy.
The most important issue for the industrial sector, which accounts for about 36pc of domestic emissions, is to transition to carbon neutrality, Han said. South Korea has an "export-driven economic structure with high external dependence", he said, which means international carbon barriers will significantly affect South Korea. This makes decarbonisation key to maintaining competitiveness, he added.
South Korea is also responding to the climate crisis through technological innovation. The country's science ministry last week unveiled plans to invest almost W2.75 trillion to develop technology to respond to climate change in 2025.
