‘Green Growth Fund’ getting BIGGER & BIGGER
When did Green Growth become such a big issue in Korea? It is when Korea’s President, Lee Myung Bak announced Green Growth as a new vision for the new generation in his congratulatory speech at the 60th anniversary of Korea’s Independence Day. He suggested a new paradigm known as environmental revolution as a fourth wave following agriculture, industrial and information revolution.
What then is Green Growth?
The concept of Green Growth came from ‘sustainable development, yet it is more specific and also supplement the wide ranges of ideas in sustainable development. While turning the economic growth model into eco-friendly model, it also prepares to make those related industry and technology as a next generation growth engine.
Since the UK’s economic magazine, ‘The Economist’ mentioned ‘Green Growth’ in 2000, this concept has developed to be the most important issue nowadays booming throughout the international society reflecting the character of each country.
In February 2009, the ‘Green Growth Committee’, South Korea’s organization initiated to carry out green growth issues, had its first conference accompanied by the president. At the conference, they discussed new vision for a way to become the world’s best green growth developed country and referred the green growth policies as a way to real changes.
The Committee discussed the ‘Act on Low-Carbon Green Growth’ which was on the enacting process. The content of the Act includes establishing Green Finance and Green Fund to promote the private investments in future green technology and industry, and at the same time, mitigate potential risk through government funds.
If the Act is ratified, we will see changes in the corporate sector and the financial markets. When the corporate’ green management report is fully aware by the public and when green growth fund and green gas emission trading system become common to the public, people will be able to invest in low-carbon green growth future more easily.
The FSC will also be taking part in green growth industry by providing financial supports to eco-friendly companies, Green growth exclusive fund, developing green industry stock price index and diversifying financial derivatives. Donating points or commissions to green growth industry will be another good way for green finance, followed by financial instruments applying discounted interest rate mortgage loan for using energy efficiency housings and…, etc.