South Korea Becomes 21st Fund Contributor
Ranks 16th in Contribution Size Among 21 Countries
Also Fulfills $300 Million Pledge to Green Climate Fund
"Prioritize $35 Million Execution in Q3 This Year"
Officials applauding after the final agreement was reached at the 28th Conference of the Parties (COP28), which concluded on December 13 last year in Dubai, United Arab Emirates. [Image source=Yonhap News]
South Korea is contributing nearly 10 billion won to the 'Loss and Damage Fund' that helps climate-vulnerable countries. This comes about half a year after the international community launched the fund and requested contributions from South Korea. The Green Climate Fund, which promised an additional $300 million contribution, plans to disburse $35 million in the third quarter of this year.
On the 9th, the Ministry of Economy and Finance announced at the Loss and Damage Fund board meeting held in Songdo, Incheon, that it would contribute $7 million. The Loss and Damage Fund is a fund under the United Nations Framework Convention on Climate Change (UNFCCC), aimed at supporting economic and non-economic losses and damages in developing countries. It was newly launched at the 28th Conference of the Parties (COP28) held in the United Arab Emirates (UAE) at the end of last year.
With this, South Korea became the 21st contributor country to the Loss and Damage Fund. The fund started with a size of $792 million but recently increased to $809 million as Australia contributed an additional $10 million and South Korea joined. South Korea's contribution ranks 16th among the 21 countries, less than Japan and Australia (each $10 million) but more than Portugal ($5.5 million).
So far, the South Korean government has faced pressure from the international community to contribute to the fund. Although South Korea is officially a developing country, it is a de facto advanced country with one of the top 10 largest economies in the world and ranks ninth in carbon emissions globally. Nevertheless, it had not expressed any position on contributions, citing the lack of domestic consensus. After the conference, Kim Hyo-eun, the Ministry of Foreign Affairs' climate change ambassador, only stated, "When and how much South Korea will contribute to the Loss and Damage Fund is a matter to be discussed domestically."
However, it was made clear that the Loss and Damage Fund does not acknowledge South Korea's responsibility for carbon emissions. A Ministry of Economy and Finance official explained, "South Korea is a developing country under the Climate Change Convention but contributed proactively to support other countries suffering from climate change. There is no obligation or contribution amount determined based on emissions, and contributing does not mean acknowledging responsibility for climate change at all."
During discussions on the Loss and Damage Fund, there was intense debate over whether developed countries bear responsibility. Developing countries and climate/environmental groups argued that the fund's purpose should explicitly be stated as 'compensation' or 'reparation' from developed countries. However, developed countries insisted that the fund should be based on voluntary donations and that contributions are a form of support. Ultimately, the agreement included language urging developed countries to continue support and encouraging voluntary contributions.
Meanwhile, the government signed an agreement to replenish the Green Climate Fund. The Green Climate Fund is the largest fund supporting developing countries' climate change responses. President Yoon Suk-yeol pledged an additional $300 million contribution at the G20 summit held in India last September. The Ministry of Economy and Finance plans to prioritize disbursing $35 million in the third quarter of this year to fulfill this promise.
Choi Ji-young, Director General for International Economic Affairs at the Ministry of Economy and Finance, said in a welcoming speech, "We hope South Korea's contribution will serve as a catalyst to encourage more voluntary contributions from other parties," and added, "We will do our best to share knowledge and technology for climate change response and green transition with the international community."
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