National Climate Financing Vehicle and ESG Investing in Korea
Although the size of committed climate finance is increasing, it is far less than what is needed to implement NDC action. The Korean government has recently set up a national financing vehicle, climate response fund, to accelerate the flow of financial resources to NDC action. The fund aims to secure the financial resources needed to effectively respond to the climate crisis and promote the transition to a carbon-neutral society and green growth. We review issues in the fund's sustainability beyond initial capitalization. We discuss the potential to utilize a range of financial products to expand the conduit from ESG investing to climate finance. The presentation is closely linked to tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (among 7 Operational Priorities in ADB's Strategy 2030).