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S. Korea to end injecting public funds into overseas coal projects

South Korea said Friday it will refrain from injecting public funds into overseas coal projects starting in October, in line with the global initiatives to gradually phase out traditional energy sources and go carbon neutral by 2050.

Under the new guideline to be implemented next month, all public organizations will no longer disburse funds to overseas coal power plants, while private businesses in which the government has a stake will also be induced to follow the measure, according to the Ministry of Trade, Industry and Energy.

South Korea made the announcement during the Leaders Summit on Climate in April.

The public funds encompass all types of tax-backed support, including official development assistance, export finances and investment.

Considering its economic and diplomatic ties with partner countries, South Korea said it will still maintain the continuity of existing projects.

South Korea said it will also actively participate in the global discussions to cut the use of fossil fuels, including those from the Organization for Economic Cooperation and Development, with the goal of applying stricter measures to local coal plants as well. (Yonhap)