First Vice Minister of Economy and Finance Bang Kisun (left) and European Bank for Reconstruction and Development (EBRD) Vice President for Policy and Partnerships Mark Bowman on June 9 sign an agreement on Korea's donation to the EBRD fund High-impact Partnership on Climate Action at the bank's headquarters in London. (Ministry of Economy and Finance)

By Jung Joo-ri

The government has given USD 4.5 million (KRW 5.8 billion) to the High-Impact Partnership on Climate Action (HIPCA), a multi-donor fund of the European Bank for Reconstruction and Development (EBRD).

The Ministry of Economy and Finance on June 11 said its First Vice Minister Bang Kisun on June 9 in a meeting with EBRD Vice President for Policy and Partnerships Mark Bowman at the bank's headquarters in London signed an agreement on the contribution.

Founded in 1991 to support the transition of former Soviet Union and Eastern European communist states into democracies and free market economies, the EBRD is a global body of 71 members including the two global organizations of the European Union and European Investment Bank and 44 European and 25 non-European states.

The bank also gives funds to 37 states including temporary recipients such as Greece and the Czech Republic as well as Slovenia, Kazakhstan and the West Bank.

HIPCA was launched in November 2021 by COP26, or the 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change to support the climate and environment categories of recipient countries such as the green and low-carbon sectors and play a role in sustainable growth such as in gender balance and inclusive growth.

A participating country can open a dedicated account within the fund to designate the method, sector and region of support.

Vice Minister Bang said, "This fund contribution represents Korea's active participation in the EBRD's goal of transition to a green economy."

Also at this latest meeting, Seoul donated an additional USD 2 million (KRW 2.6 billion) to the EBRD's Korean Technical Assistance and Cooperation Fund and USD 1 million (KRW 1.3 billion) to the Sustainable Infrastructure Foundation.

etoilejr@korea.kr