Korea Development Bank Launches Asia's First 'Climate Technology Transfer Specialized Fund'

Green Climate Fund Board Approves $220 Million Fund Cooperation Program
Supporting Domestic Climate Tech Companies' Entry into Southeast Asia Climate Finance Market

On the 10th, the creditor meeting of Taeyoung Construction was held at the headquarters of the Korea Development Bank in Yeouido, Seoul. Photo by Younghan Heo younghan@

Industrial Bank of Korea announced that it has secured funding approval for a $220 million climate tech company overseas expansion support program at the 39th Green Climate Fund (GCF) Board meeting held from the 15th to the 18th in Songdo, Incheon.

The program supports the establishment of joint ventures (JVs) between global climate tech companies, including domestic industries, and companies from five Southeast Asian countries. The project budget consists of $20 million in GCF grant funds and $200 million from the climate tech fund.

This program is a GCF cooperation project targeting multiple countries, initiated when GCF proposed it to Industrial Bank of Korea in June 2020 following the recommendations of the UN Framework Convention on Climate Change (UNFCCC). Leveraging its experience in corporate finance, venture investment, and startup incubation, as well as its domestic and international networks, Industrial Bank of Korea designed the project structure and organized participating institutions, successfully obtaining GCF Board approval for the specialized fund.

Through three rounds of GCF cooperation project approvals, Industrial Bank of Korea has secured $250 million in GCF funds, expanding climate projects centered in Asia. This program plans to actively encourage domestic climate tech companies and investment institutions to enter the Southeast Asian market and increase participation in climate projects in developing countries by jointly promoting with Korean entrusted asset managers.

An Industrial Bank of Korea official stated, “Based on the global climate finance capabilities and know-how accumulated during project implementation, we will advance as Asia’s representative GCF accredited entity and continuously support the global climate market entry of the domestic climate tech industry.”