U.N. climate fund finances Korean energy project

The United Nations climate change fund chose Korea’s renewable energy supply model as its first project to fund, the South Korean Finance Ministry said in a press release Friday.

In the 11th Green Climate Fund meeting held in Zambia from Nov. 2 to 5, the climate fund board decided to adopt the Korean proposal on the integrated supply and storage system for renewable energy.

Korea’s renewable energy model, with a duration of five years, aims at replacing unsustainable energy with renewable energy in the Peruvian wetlands.

The Peruvian energy project, which adopts the Korean energy model, requires an estimated input of about $9.11 million.

The GCF will contribute $6.24 million, the Korea International Cooperation Agency $1.8 million and Peru‘s environmental trust fund Profonanpe $1.07 million, the ministry added.

The residents of the northwestern Amazon basin region have been generating power with nonrenewable fossil fuels, such as diesel, releasing greenhouse gases into the atmosphere.

Frequent lumbering for obtaining fruits has also caused damages to the forest, ultimately contributing to the climate change.

“Korea’s participation in the GCF’s operations is expected to create synergy effects on Korea’s own climate change activities under the creative economy, as well as on the growing renewable energy industries in the developing economies,” a ministry official said.

The renewable energy storage system was one of the four GCF energy models proposed at the ASEAN-Korea Commemorative Summit in December of last year, along with the eco-friendly energy town, electric car and smart farm.

In the Zambia board meeting, the GCF board chose eight proposals, with funding estimated at about $168 million. Around two-thirds of the money was intended to fund operations to adapt to climate change impacts, and some three-quarters had been requested in the form of grants.

The GCF, headquartered in Songdo, Incheon, aims at routing international funds to developing countries to counter climate change. The climate fund was established in 2010 as part of the United Nations Framework Convention on Climate Change.

By Chung Joo-won (joowonc@heraldcorp.com)