South Korea’s government has unveiled a Won73.4tn ($60.9bn) green New Deal as part of a broader national strategy to shift the economy from carbon-dependent to low-carbon and prepare for the post-COVID-19 era.
The Korea Ministry of Trade, Industry and Energy said the funds invested in 2020-2025 will create 659,000 jobs and help the country overcome the economic crisis caused by novel Coronavirus while addressing climate and environmental challenges.
South Korea will seek to increase its renewable energy capacity to 42.7GW by 2025, from 12.7GW last year, and expand new energy vehicles to 1.33m electric and hydrogen vehicles.
The plan also promises to renovate public rental housing and schools to make them zero-energy and transform urban areas into green smart cities, the ministry said.
The green strategy is one of the main elements of the digital New Deal, the second pillar of South Korea’s new policy announced by President Moon Jae-in on Tuesday. “The Green New Deal is about pre-empting the climate crisis, and the COVID-19 pandemic reaffirms the urgency of tackling climate change.”
By 2025, the new policy will involve won114tn of direct investment from the state Treasury, plus funds from the private sector and local governments, which will rise to about Won160tn.
The green New Deal program will create 1.9 million new jobs over five years.