S. Korea joins ADB's new facility on climate change with 5 nations

Economy 17:30 May 04, 2023

By Kang Yoon-seung

INCHEON, May 4 (Yonhap) -- South Korea's finance ministry said Thursday the country has officially joined a new facility focusing on addressing climate issues launched by the Asian Development Bank (ADB) with five other nations.

The Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP) will focus on financing related projects in the region, according to the Ministry of Economy and Finance. Other participants are the United States, Britain, Japan, Sweden and Denmark.

The launch came during the 56th Annual Meeting of the Board of Governors of the Asian Development Bank in Incheon, 27 kilometers west of Seoul.

"IF-CAP financing will contribute to ADB's raised ambition for US$100 billion from its own resources for climate change for 2019–2030," the ADB also said. "The reduced risk exposure created by the guarantees will allow ADB to free up capital to accelerate new loans for climate projects."

The facility comes in line with the Manila-based bank's efforts to become what it calls a "climate bank." Through the program, the ADB plans to support various projects that aim to "mitigate" and "adapt" to climate change.

"(South Korea) will actively support the IF-CAP, and promote climate investment in the Asia-Pacific and contribute in bolstering the resilience," First Vice Finance Minister Bang Ki-sun said in a statement.

Bang added South Korea will continue its efforts to share its climate-related technologies and know-how with other partners in the region through the ADB-Korea Climate Technology Hub that will set sail in Seoul next year.