Social Value Research Institute and Seoul National University Seek Solutions for Advanced Financial Mechanisms in Climate Tech

Evaluating Future Climate Outcomes to Connect with Current Financing

Discussing Policy and Investment Links Based on Climate Value Assessment

Detailing Implementation Models Linked to the Special Act on Fostering Climate Tech

The Social Value Research Institute, established by SK, and the Seoul National University Climate Tech Center discussed ways to establish an "advanced financial" system that proactively supplies the funds necessary for the commercialization of climate technology by assessing the future achievements of climate technology.

On the 3rd, panelists are discussing at the joint forum titled "Climate Tech Climate Value Assessment and Pre-Financing Mechanisms," held at the Korea Economic Association Conference Center in Yeouido, Seoul. The panelists discussed the evaluation, investment, policy, and industrial conditions necessary for capital to actually flow during the development, demonstration, and commercialization processes of climate technology. From the left in the photo are Jiseon Koo, Director of the National Institute of Green Technology; Changsun Lee, Director at NICE Credit Information Service; Sujong Chung, Director of the Climate Tech Center at Seoul National University; Sangjin Lee, Team Leader at the Hyundai Motor Chung Mong-Koo Foundation; Yonghwan Choi, Manager at NH-Amundi Asset Management; and Jaehyun Cho, Team Leader at SK hynix. Social Value Research Institute. Photo by Social Value Research Institute

The Social Value Research Institute and the Seoul National University Climate Tech Center announced that they held a joint forum on the 3rd at the Korea Economic Association Conference Center in Yeouido, Seoul, under the theme "Climate Tech Climate Value Evaluation and Advanced Financial Mechanisms."

This forum was organized to explore ways to address the funding gap that occurs as climate technology transitions from technology development to the demonstration and commercialization stages. Objectively evaluating the greenhouse gas reduction and climate adaptation achievements to be created in the future—and connecting these to current policy support, investment, and financial mechanisms—were major topics of discussion.

Since climate technology requires considerable time and cost from technology development through demonstration and commercialization, it's important to provide appropriate funding at the early stages. The discussion focused on the need for a system that objectively evaluates the climate performance of a technology and links the evaluation results to policy support, private investment, and performance verification.

In his opening remarks, Sujong Jung, Director of the Seoul National University Climate Tech Center, stated, "Climate value evaluation should not stop at verifying a technology's environmental superiority. It should serve as a standard for selecting policy support and investment tools tailored to each stage of growth and for verifying subsequent outcomes."

Beomsu Kim, an official from the Department of Climate, Energy and Environment, introduced relevant policies and institutional directions under the theme "The Direction and Significance of the Special Act on Fostering Climate Tech." Seonghun Park, Director of the Social Value Research Institute, presented case studies on the EPC (Environmental Progress Credit) mechanism, which connects future climate achievements with current financing.

The EPC is a method that assesses in advance the value of the environmental achievements that climate technology is expected to generate and supplies the financing needed for development, demonstration, and commercialization ahead of time. Unlike existing methods that reward achievements after they occur, this structure connects future performance directly with current funding.

Jongseop Lee, Professor at Seoul National University's School of Business, presented the financial contract conditions required to link climate achievements with actual investment.

The panel discussion, moderated by Director Sujong Jung, included Ji-sun Koo, Director of the National Green Technology Research Institute; Changseon Lee, Director of NICE Credit Information Service; Sangjin Lee, Team Leader of the Hyundai Motor Chung Mong-Koo Foundation; Yonghwan Choi, Team Leader of NH-Amundi Asset Management; and Jaehyun Cho, Team Leader of SK hynix. They discussed challenges related to evaluation, finance, policy, and industry. More than 100 people attended the forum, including representatives from climate tech companies, as well as those from research, financial, investment, public, and industry organizations.

The Social Value Research Institute has been studying ways to expand private capital participation by measuring the social and environmental achievements created by companies and proportionally rewarding them. In April, Tae-won Choi, Chairman of the Social Value Research Institute, also emphasized the need for a compensation system for climate technology achievements at the launch ceremony of the Korean Voluntary Carbon Market Alliance.

Going forward, the Social Value Research Institute and the Seoul National University Climate Tech Center plan to further advance the climate value evaluation criteria and data and verification systems in tandem with the ongoing legislative discussions, such as the Special Act on Fostering Climate Tech. They will also review the structure for advanced financial disbursement and settlement, ways to link public and private funds, and pilot application conditions for technologies and companies.

Naseok Kwon, CEO of the Social Value Research Institute, stated, "For climate tech, it is important to connect future climate outcomes to current funding through preliminary climate value evaluation, narrowing the gap between the time funding is needed and when it is actually provided."

Director Sujong Jung added, "Climate value evaluation must objectively demonstrate the climate achievements that a technology will produce, providing a foundation to support decision-making in policy and finance. We will further specify a system that connects evaluation, support, investment, and performance verification to help climate tech enter and expand within the market."

This content was produced with the assistance of AI translation services.