"Stopping Greenwashing"... Ministry of Environment Revises Green Bond Guidelines

[Asia Economy Sejong=Reporter Dongwoo Lee] From next year, it will be mandatory to verify the presence of 'greenwashing' through an external agency when issuing green bonds. Green bonds are bonds issued to raise funds for environmentally friendly projects and are limited to use for purposes such as carbon reduction, building energy efficiency, renewable energy, electric vehicles, and support for renewable energy projects.

On the 15th, the Ministry of Environment announced that it will disclose the revised version of the "Korean Green Bond Guidelines" containing these details on the 16th and implement it from January 1 next year. According to the Ministry of Environment guidelines, green projects must contribute to environmental goals such as climate change mitigation and adaptation, conservation of natural resources and biodiversity, pollution prevention and management, and conversion to circular resources.

With the implementation of this revised green bond guideline, a "conformity assessment procedure" will be introduced to determine whether green projects eligible for green bond issuance comply with the Korean Green Taxonomy. The revision also includes provisions necessary for the "external review agency registration system," allowing external agencies with expertise in environment and finance to review green bond issuance requirements. Currently, compliance with green bond issuance requirements is often reviewed by accounting firms or credit rating agencies.

Additionally, the revision includes measures to prevent post-issuance greenwashing by mandating external reviews after green bond issuance and requiring periodic report submissions. A Ministry of Environment official stated, "By newly presenting green bond guidelines applying the green taxonomy, we have established a foundation to enhance the reliability of domestic green bonds and prevent greenwashing."

Environment Minister Han Hwa-jin is holding a policy meeting with Choi Jin-sik, chairman of the Korea Federation of Medium-sized Enterprises, and other medium-sized business leaders at the Korea Federation of Medium-sized Enterprises in Mapo-gu, Seoul, on the 6th. Photo by Kim Hyun-min kimhyun81@