Green Finance in the Republic of Korea: Barriers and Solutions
The Republic of Korea aims to increase the share of renewable energy to 20% of electricity generation by 2030.
The Republic of Korea fully launched its green finance scheme in 2009, an environmental information disclosure system in 2013, and an emissions trading scheme in 2015. However, use of these schemes has not increased dramatically, as the public sector has taken the major role in green finance. Nowadays, green finance is expanding as the Government of the Republic of Korea is making efforts to change the energy mix by decreasing the share of nuclear energy and increasing that of new and renewable energy. The private sector is also attempting to revitalize green finance in the Republic of Korea, such as through commercial banks, private equity funds, and so forth. Changing the energy mix needs huge funds, so the government alone cannot be responsible; the government is seeking to reach this goal in combination with private firms. In this context, the motivation of the Korean people to adopt eco-friendliness and energy efficiency through green financing, public or private, is necessary, together with industrial support from the government or financial institutions.