March 17, 2021; Seoul, Korea – The Global Green Growth Institute (GGGI) and the Ministry of Economy and Finance (MOEF) signed an Administrative Agreement (AA) today to promote Korea Green New Deal (KGND) projects in developing and emerging countries. The two organizations have agreed to collaborate to create projects that promote low-carbon development growth trajectories and climate resilience approach for GGGI Member and partner countries, including 43 Member countries and 20 countries that submitted a letter of intent to join GGGI.
The agreement was signed at the Government Complex Building in Sejong City by Dr. Kyung Nam Shin, Assistant Director-General of GGGI, and Ms. Kyunghee Kim, Director General of MOEF. Under the AA, the MOEF will provide the GGGI with Korean Won 5 billion annually over five years in support of results-based project solutions, strengthened human capital, and enhanced outreach activities and knowledge sharing under the Korean Green New Deal framework. These projects will provide bankable and investment opportunities to Korean public and private entities in the developing world.
In 2021, the GGGI alone supported an investment project pipeline of more than US Dollar 5 billion, over a hundred times its own operational budget, highlighting its efficiency and effectiveness in fund management and deployment on climate change initiatives globally.
At the signing ceremony, Ms. Kyunghee Kim emphasized the resolute commitment of the Government of Korea to a cleaner, greener planet and its leadership in promoting GGGI as a trustworthy advisor to over forty members. Dr. Shin highlighted “Korea Green New Deal Trust Fund operational focus will ensure projects reach the finish line with required climate financing. This progress will be achieved through project needs assessment, master planning, feasibility study, project preparatory technical assistance, and policy/regulatory framework and required capacity building.”
While commercial and concessional financing is readily available to well-designed projects of sovereigns, non-sovereigns, and grant financing such as that offered by MOEF is rare. It is key to encouraging developing economies to pursue low-carbon and climate resilient development strategies.