Gyeonggi Province Establishes Carbon-Neutral Fund No. 1 and Promotes Investment

@Gyeonggi Province

Gyeonggi Province Establishes Carbon-Neutral Fund No. 1 and Promotes Investment

Gyeonggi Province announced that it has established Carbon-Neutral Fund No. 1 and will officially promote investment so as to achieve “green innovation” and foster a carbon-neutral industry ecosystem.

Gyeonggi Province created Carbon-Neutral Fund No. 1, valued at KRW 103 billion, and announced that it will officially undertake investment promotion for promising companies in the carbon-neutral sector.

This fund was established by Gyeonggi Province for the first time this year as a climate crisis countermeasure. It focuses on identifying and promoting investment in promising SMEs and venture operations that possess eco-friendly and/or low-carbon technologies so as to develop a carbon-neutral industry ecosystem within Gyeonggi Province.

The fund was realized with KRW 6 billion from Gyeonggi Province and KRW 97 billion from the private sector, amounting to KRW 103 billion in total and surpassing the initial target of KRW 30 billion.

@Gyeonggi Province

Gyeonggi Province first planned to gradually grow the fund beyond KRW 120 billion over the next five years.

With the first fund having far surpassed the original target, however, the province is now expecting to raise a fund of over KRW 200 billion by 2026.

Gyeonggi Province’s carbon-neutral fund will focus on identifying and promoting investment in promising SMEs and venture operations with high growth potential in the carbon-neutral sector. This coincides with the national government’s Green New Deal program with a focus on renewable energy and low-carbon green growth.

The Carbon Neutral Fund No. 1, which will operate until July 2030, is being managed by Hanwha Investment and Securities. Gyeonggi Province convened the ‘Gyeonggi Province Carbon-Neutral Fund No. 1’ general meeting with the participation of the Gyeonggi Business & Science Accelerator, Hanwha Investment and Securities, and investors to complete fund organization; detailed discussions were held regarding the identification of companies and investment strategies for the future.

@Gyeonggi Province

The requirement that 300% of investments be made in pertinent Gyeonggi Province companies is expected to play a significant role in industrial development, active employment, and company growth within the carbon-neutral sector of the province.

Gyeonggi Province is confident that Carbon-Neutral Fund No. 1 can successfully lead the way in the execution of green financing, thereby cultivating a carbon-neutral industry ecosystem within Gyeonggi Province.

@Gyeonggi Province

(Meanwhile, Gyeonggi Province received positive feedback on establishing the structure for this project after it announced the ‘Framework Organization Plan for the Gyeonggi Province Carbon Neutral Fund’ and the ‘Plan for Promoting Carbon-Neutral-Leading Businesses in Gyeonggi Province’ last year. The Gyeonggido Assembly, the province’s legislative body, passed the ‘Framework Ordinance on the Carbon Neutrality and Green Growth of Gyeonggi Province’ in June and officially commenced the ‘Carbon-Neutral Policy Fund Organization’ in fulfillment of an election pledge program made by the current provincial administration.)