Oil Change International (OCI) has revealed that South Korea’s public financing for fossil fuel projects is the second largest globally. (Image courtesy of Kobiz Media)
SEOUL, Apr. 5 (Korea Bizwire) – A report by the American climate organization Oil Change International (OCI) has revealed that South Korea’s public financing for fossil fuel projects is the second largest globally.
Climate Solutions, a South Korean climate advocacy group, disclosed these findings, emphasizing the significant financial support extended by South Korea to the fossil fuel industry from 2020 to 2022.
According to the report, South Korea invested an annual average of $10 billion (approximately 13.5 trillion won) in fossil fuel projects through public financing during this period.
This considerable sum represents the combined investments of five South Korean institutions, including the Export-Import Bank of Korea, Korea Trade Insurance Corporation, KDB Industrial Bank, Korea Policy Finance Corporation, and Korea International Cooperation Agency, positioning South Korea just behind Canada in global rankings.
Canada, which topped the list, was reported to have allocated an average of approximately $11 billion (about 13.85 trillion won) annually to fossil fuel support.
However, by the end of 2022, Canada had signed the Clean Energy Transition Partnership (CETP), committing to a substantial reduction in public financial support for overseas fossil fuel projects.
Climate Solutions pointed out the significant shift in Canada’s stance, which declared an end to new fossil fuel investments.
With this development, South Korea is on track to become the leading country in public investment in fossil fuels worldwide, should current trends continue.
Japan, the top investor according to last year’s OCI report, has now fallen to third place, with an annual investment of $7 billion (approximately 9.45 trillion won) in the fossil fuel sector.
Clare O’Manique, an OCI researcher and author of the report, emphasized the crucial role of international public finance in achieving a just energy transition globally.
She highlighted the contradiction posed by G20 countries like South Korea, which continue to allocate significant funds to environmentally detrimental fossil fuel projects, undermining international efforts toward sustainable energy solutions.
M. H. Lee (mhlee@koreabizwire.com)
