Kibo Registers Patent for Self-Developed 'Carbon Value Assessment System'

Converting Greenhouse Gas Reduction Amounts into Monetary Value
Supporting Low-Carbon Management for Small and Medium Enterprises

The Korea Technology Finance Corporation (Kibo) announced on the 15th that it has obtained a patent for its self-developed ‘Carbon Value Evaluation System and Method.’

This patent relates to a method for calculating the amount of carbon reduction from carbon reduction activities or technologies and converting it into monetary value. The key variables for calculating monetary value are fourfold: ▲estimated greenhouse gas reduction amount expected from the company’s technology business activities ▲estimated period during which greenhouse gas reduction occurs ▲discount rate quantifying potential risks ▲and emission allowance prices. Over 40 of Kibo’s technology evaluation experts directly developed, verified, and field-tested the model to enhance the completeness of the carbon value evaluation model.

While methods for estimating carbon reduction amounts have existed before, Kibo explained that this is the first time a method for converting carbon reduction amounts into monetary value has been developed. Overseas patent applications are also underway.

In 2022, Kibo introduced a carbon value evaluation guarantee applying the carbon value evaluation system and has supplied over 500 billion KRW for two consecutive years. Through carbon value evaluation that converts companies’ greenhouse gas reduction amounts into monetary value, Kibo has supported the carbon-neutral transition of small and medium-sized venture companies.

Kibo first introduced a technology evaluation system in Korea in 1997 and developed a model to assess the technological capabilities of small and medium enterprises, obtaining its first patent in 2007. With this recent patent acquisition, Kibo now holds a total of 16 patents related to technology finance.

Kim Jong-ho, Chairman of Kibo, said, “With the patent registration, the external credibility of Kibo’s carbon value evaluation system will be further enhanced, and we expect an expansion of collaborative cases through the financial sector.” He added, “Going forward, Kibo will continue to link its specialized technology evaluation capabilities with green finance to guide carbon management for small and medium venture companies and contribute to the activation of green finance.”