The Ministry of Climate, Energy and Environment on Jan. 8 announced that it will invest KRW 60 billion in this year's Green Infrastructure Overseas Export Support Fund. (Yonhap News)

By Lee Dasom

To preemptively lead the rapidly shifting global markets for carbon neutrality and energy transition, the government is injecting large-scale financial support.

The Ministry of Climate, Energy and Environment on Jan. 8 announced investment of KRW 60 billion in this year's Green Infrastructure Overseas Export Support Fund, which is expected to attract new investment of KRW 100 billion from government sources and private investments.

The fund is the country's lone instrument for investment in new overseas projects. It boosts the chances of Korean companies to secure projects by investing in equity or providing loans in the early stages of such projects such as carbon reduction, energy transition, circular economy and water.

Launched in October 2024, the fund will reach KRW 509.2 billion in value by 2029 -- KRW 209.1 billion from private investment and KRW 300.1 billion from the government.

The ministry will use the fund to boost investment in overseas projects related to energy transition and carbon reduction. Policy support will continue for the overseas advances of domestic companies, contributions to the achievement of the 2030 Nationally Determined Contributions and reinforcement of global climate cooperation.

Jung Eun-hae, director general of the ministry's International Cooperation Bureau, said, "By supporting investment and on-site-oriented policy, the government will continue helping domestic companies advance to global green markets more aggressively."

dlektha0319@korea.kr