The climate crisis is worsening. The average global temperature for 2016–2020 is set to be the warmest five-year period on record, with an average global temperature of 1.1°Celsius above pre- industrial times. Based on existing trends, the world could cross the 1.5°C threshold within the next two decades and 2°C threshold early during the second half of the century. The last time we came close to a 2°C increase in global average temperature was during the last interglacial period 125,000 years ago. During this period, sea level was 7 to 12 meters above today and the world was devastated by superstorms.

As stated by President Moon, climate change has become "the most important problem of our generation". Matching words with intent, South Korea committed in October to become carbon neutral by 2050. To achieve this, the “Korean Green New Deal” aims to translate Korea’s leadership in rapid economic growth away from its heavy reliance on fossil fuels to become a leader of sustainable, green growth.

The European Union, China, Japan and more than 110 other countries - as well as US president- elect Joe Biden - have now pledged carbon neutrality by around the middle of the century. The Covid-19 pandemic has brought the world to a tipping point or a turning point in the fight against climate change. Decisions taken by leaders today to revive economies will either entrench our dependence on fossil fuels or put us a path to achieve carbon neutrality by 2050.

A recent report by the UN Environment Programme indicates the world could produce twice the amount of fossil fuels by 2030 which would be consistent with the Paris Agreement 1.5 degrees target. G20 countries are also allocating 50% more of their coronavirus recovery funding to fossil fuels than to clean energy.

To reverse this trend, Korea can play a big part in driving global efforts to move away from outmoded forms of polluting growth to tap the positive synergies of green growth. Climate action and COVID-19 recovery measures must be mutually supportive to be effective. Only in this way can countries take the necessary steps to update their climate action commitments before next year’s pivotal COP26 in the UK.

The private sector must play a key role in this transition, both in Korea and worldwide. Opportunities for private sector climate investments in emerging and developing countries alone are estimated at between $11 to US$ 26 trillion between now and 2030, but barriers to investment persist. As the world’s largest dedicated climate fund, a key task of the GCF is to unlock private sector climate investment to foster low emission climate resilient development pathways in developing countries.

This includes assisting countries in the formulation of integrated strategies and policies that optimize synergies between climate action and development, fostering and piloting green innovation, leveraging blended finance to de-risk private investment, and deepening national financial sectors and capital markets.

GCF greatly appreciates the support of its host country for its mission, as shown by Korea’s recent signing of a contribution agreement to provide USD 200M to GCF’s replenishment.
With Korea’s support for climate action at home and abroad, I look forward to seeing how Korea’s Green New Deal can transform this innovative nation from an industrial powerhouse to a green growth powerhouse.