US$33 Trillion Investor Group Sees Opportunities For Climate Progress in South Korea

The Asia Investor Group on Climate Change (AIGCC) has welcomed South Korea’s promise as a centre for climate innovation and industry, based on a series of high-level roundtables, seminars, and bilateral meetings in Seoul this month.

AIGCC is the region’s leading network for investors focusing on the risks and opportunities of climate change. Its members manage more than US$33 trillion globally, and the group is active in 11 markets throughout Asia.

This month, AIGCC launched a new focus on South Korea, building on momentum from the country’s business community, large investors increasingly making net zero commitments, and the government’s plans to release new green finance guidelines in 2024.

AIGCC CEO Rebecca Mikula-Wright said: “Investors have been encouraged this month by the Korean Chamber of Commerce and Industry’s strong calls for accelerated decarbonisation, and what we’ve heard in our meetings with the Minister of Land Industry and Transport, Hee-ryong Won.”

“As one of the largest economies in Asia, South Korea is currently also one of the largest greenhouse emitters, but the battery and EV industries are charging ahead at amazing speed and creating value in the transition at global scale.”

“South Korea’s economy is benefitting now from long-term policy settings that stimulated innovation and the next round of policy updates could unlock billions of dollars to accelerate South Korea’s journey to net zero.”

“Investors and companies support transition in the power sector, which remains the largest source of emissions in South Korea. This could include strengthening Korea’s emissions trading scheme and setting out clearer pathways to achieve South Korea’s short-term targets, particularly building new renewables.”

“Mandatory climate disclosures and transition planning will also help South Korean industry compete in global capital markets because they help investors efficiently allocate capital in the transition to net zero.”

“A clean energy system for South Korea will support the industry’s leadership and global competitiveness, ensure a vibrant economic future for the country, and have benefits for the country’s trading partners including USA, Australia and nations across the Asia Pacific.”