Press Releases

 "Economic and Financial Paradigms Must Shift for Meaningful Climate Action" …
Three Climate Think Tanks Propose Radical Climate Finance Reform
to the New Administration

- Green Transition Institute, Plan 1.5, and KoSIF Hold Joint Press Conference at the National Assembly on the 25th

- Proposal Includes Establishment of a 'Climate Investment Corporation,' Enactment of an 'ESG Framework Act,' and Introduction of 'Climate Retirement Pensions'

- The "10 Climate Finance Policies" to be Submitted to the Presidential Transition Committee and Relevant National Assembly Standing Committees

A joint policy proposal has been released urging a fundamental transformation of Korea's economic and financial systems to ensure that the "golden time" for climate crisis response results in substantive outcomes.

On the 25th at 10:20 AM, three organizations—the Green Transition Institute, Plan 1.5, and the Korea Sustainability Investing Forum (KoSIF)—held a press conference at the National Assembly Communications Building in Yeouido, Seoul. Hosted by National Assembly Member Byung-duck Min (Democratic Party of Korea), the groups presented "10 Climate Finance Policies" to the newly inaugurated Lee Jae-myung administration. The think tanks emphasized, "The Lee Jae-myung administration is now responsible for the golden time of climate response. To achieve meaningful results, the very grammar of our economy and finance must change."

The groups stressed that "The climate crisis is no longer a peripheral issue of environmental policy; it is a macroeconomic risk threatening inflation, financial stability, asset soundness, pension returns, and trade competitiveness."

Despite this, Korea's financial, legal, and institutional infrastructure remains ill-prepared. Some green finance policies have led to results bordering on "greenwashing," such as continued investment in fossil fuels or opaque information disclosure. The fossil-fuel-centric structure of the Korean economy remains rigid.

The three climate think tanks asserted that "the role of climate finance must be elevated to the center of economic policy." The "10 Climate Finance Policies" proposed to the new administration are as follows:

The 10 Climate Finance Policies Proposed by GTI, Plan 1.5, and KoSIF

1. Bank of Korea (BoK) as a "Green Central Bank": Establish and implement monetary and credit policies for climate response; promote green finance through comprehensive monetary policy; mandate BoK climate disclosures.

2. Enactment of an ESG Framework Act: Provide a comprehensive and systematic legal basis for ESG principles, covering disclosure, verification, evaluation, public procurement, and supply chains; define roles and responsibilities for participants in the ESG ecosystem.

3. Mandatory Climate Disclosure for Corporations with Assets over KRW 2 Trillion by 2027: Adopt ISSB-aligned standards (including Scope 3); mandate disclosure within official business reports; establish an ESG verification body.

4. Mandatory Climate Risk Integration in Asset Soundness Evaluation: Establish asset evaluation clauses within "Climate Risk Management Guidelines"; mandate full-scale scenario analysis and stress testing.

5. Reform and Strengthen Stewardship Code: Revise the "Stewardship Code" to explicitly include climate change and ESG; mandate the disclosure of implementation reports and evaluation results based on activities and outcomes to enhance effectiveness.

6. Net-Zero Asset Portfolios for All Public Financial Institutions: Require institutions like the National Pension Service (NPS) and Korea Development Bank (KDB) to declare Net-Zero asset portfolios by 2050 and establish concrete implementation plans.

7. Integrate Climate Investment Performance into Public Procurement: Require all public institutions to reflect climate investment performance as a criterion when selecting private financial institutions to induce expansion of private climate finance.

8. Enhance Pension Sustainability via 'Climate Retirement Pensions': Amend the Employee Retirement Benefit Security Act to establish a legal basis for "Climate Retirement Pension" products that systematically manage climate risks.

9. Establish a 'Climate Investment Corporation': Create a dedicated public financial institution to lead government-backed green investment for 2050 Carbon Neutrality.

10. Strengthen Taxonomy to Prevent Greenwashing: Reform and tighten the Korean Taxonomy to block capital concentration in fossil fuel-based investments, such as LNG facilities and grey hydrogen infrastructure.

Voices from the Press Conference

Choi Ki-won, Senior Researcher at the Green Transition Institute:

"If hundreds of trillions of won continue to pour into oil and gas while failing to flow toward solar and wind power, the commitment to becoming a 'Climate Government' will remain mere rhetoric. These proposals are an opportunity to move beyond climate response to find a new breakthrough for the stagnant Korean economy and accelerate the transition to a sustainable economic model."

Jong-oh Lee, Secretary General of KoSIF:

"There is no fundamental economic or social change without a 'Great Shift' in capital. If we do not actively build an environment and system where public and private financial capital can flow on a large scale into the climate economy, our future will be a dystopia. These 10 policies are thoroughly grounded in reality and are fully achievable if there is the political will."

Han Soo-yeon, Policy Advocate at Plan 1.5:

"We must amend the Employee Retirement Benefit Security Act so that retirement pensions—a major long-term asset class totaling KRW 420 trillion—can properly manage climate risks. This will not only protect the retirement savings of citizens from climate risk but also raise the overall climate accountability of the private financial sector."

National Assembly Member Byung-dug Min:

"Finance has traditionally been perceived as a secondary role merely supporting industrial policy. However, finance must now play a leading role in changing both industry and society. These 10 policies demand a paradigm shift. I will strive within the National Assembly to classify these proposals by urgency and legislative need to ensure they are implemented in a timely manner"

The 10 Climate Finance Policy proposals will be officially submitted to the Presidential Transition Committee, which oversees the new government's national policy formulation. At the National Assembly level, Representative Byung-duck Min, co-chair of the 'National Assembly ESG Forum,' plans to formally deliver the proposals to relevant standing committees, including the Political Affairs Committee, the Strategy and Finance Committee, and the Special Committee on the Climate Crisis.

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 Inquiries: Jong-O Lee CIO (argos68@kosif.org), Dajeong Kim  Senior Researcher (kimdj@kosif.org)