Government vows to invest USD2.9bn by 2013 in dedicated clean tech R&D fund
Korea has once again underlined its credentials as one of the worlds leading hubs for clean technnologies, after the government announced plans to more than double its financing for green research and development projects to KRW 3.5 trillion won (USD2.9/£1.9bn) by 2013.
The finance ministry announced earlier today that the new investment will be put into a dedicated green fund operated by the state-run Korea Finance Corporation, for distribution to private sector projects.
The government said that the fund forms part of a huge low-carbon investment drive that will see it invest a total of KRW 107.4 trillion won, or two per cent of the countrys annual gross domestic product, on green projects between 2009 and 2013.
"Such support is needed since green R&D requires long-term investments and has relatively slow returns, which can cause private companies to delay making critical decisions," the ministry statement said.
However, the government signalled that in addition to setting aside state funds, it will ask private companies to contribute KRW 2.4 trillion won to the fund.
It added that spending from the fund will be directed mainly toward businesses involved in greenhouse gas emissions reduction and promoting energy efficiency, the ministry added.
The government also announced that it plans to expand its system of tax breaks to cover new technologies in solar, wind and thermal power, low-emission vehicles, rechargeable batteries and next generation nuclear reactors.
Korea is the OECDs fastest-growing carbon emitter and the worlds fifth-largest oil importer, but it has earned plaudits from environmental groups in recent years. A UN report showed that it had earmarked around 80 per cent of its economic recovery spending for low-carbon projects.
The government also set a voluntary target last year to reduce 2020 emissions by four per cent on 2005 levels by 2020, and is expected to soon announce plans for a carbon trading scheme to begin in 2012.
The country has also recently announced a number of flagship clean tech projects, including plans to build the worlds first nationwide smart grid system by 2030 and test a large-scale carbon capture and storage plant by 2015.
SOURCE: APEC VC Korea
