사업보고서 2013-09-04 : 기후변화 대응을 위한 환경금융 활성화 방안 = Vitalizing Environment Finance Responding to Climate Change

다국어 초록 (Multilingual Abstract)

Our research on “Vitalizing Environment Finance Responding to Climate Change attempts to identify key issues for the GCF (Green Climate Fund), and urge preparation for its utilization. The GCF was established for the purpose of responding to climate change in developing countries. It raises funds from the international community, and utilizes the fund, acting both as a financial institution and an environmental organization. The fact that South Korea has hosted the GCF means that the country has an important role to play in the international community. The second chapter analyzes recent discussions of the GCF Board regarding the potential business model. Key elements in the business model framework for discussion suggested by the GCF Board include: 1) objectives, results, and performance indicators (Objectives, Results & Performance Indicators, 2) ownership of recipient countries (Country Ownership), 3) financing approach (Access Modalities), 4) financial instruments (Financial Instruments), 5) private sector organizations (Private Sector Facility), and 6) organizational structure (Structure & Organization). Chapter 2, discusses future plans of the GCF Board for the coming years, along with an analysis of each element. The third chapter studies the financial climate status of the international community regarding the mobilization of climate finance. The international community is still in disagreement on the definition of climate finance. However, all financial resources corresponding to climate change are regarded as climate finance and the measures are used as global climate finance. Private and public funding are based on the measures of the Climate Policy Initiative announced by the international community. Next, the paper discusses specific funds. Each international organization has its own way of composing funds. The GCF has the nature of both a financial institution and the environment organization. Thus, the paper gives an overview of the International Monetary Fund (IMF), the Asian Development Bank (ADB), the United Nations Environment Programme (UNEP), and the United Nations Development Programme (UNDP). The last section of Chapter 3 suggests how South Korea may contribute to GCF fundraising. Chapter 4 discusses the allocation of funds. First, the paper examines Climate Investment Funds (CIFs) and Adaptation Fund (AF), which are the existing types of major multilateral environmental funds. The paper analyzes the success factors of such institutions. The success factors need to be benchmarked by the GCF. Climate change projects are divided into two categories: mitigation and adaptation. Fund allocation is then discussed in terms of facilitating the domestic industry to provide investment opportunity overseas through GCF projects. Hosting of the GCF has encouraged Korea to identify lessons learned from the perspectives of suppliers and consumers of climate finance, which has also allowed identification of effective methods to utilize GCF funds. The second part of Chapter 4 discusses the use of private funds. The GCF plans to launches an organization named Private Sector Facility (PSF). PSF catalyzes the use of private sector participation for climate change projects, and attracts private funding. The success of GCF operation depends on the effectiveness of PSF, because public funding cannot meet the demand of increasing funding needs of developing countries. Effective mobilization of private funding will provide enormous opportunities for Korean companies and industries. In addition, Korean financial institutions and technology companies will have opportunities to expand overseas through collaboration with the GCF. The study examines business model in conjunction with the PSF. The final section of Chapter 4 proposes methods of allocating funds.