Songdo to host UN climate fund

President Lee Myung-bak is welcomed by Incheon Mayor Song Young-gil, left, and Kim Sang-hyup, right, presidential secretary for green growth, during his unexpected visit to the media briefing at Songdo ConvensiA in Songdo, Saturday, after the international business district in Incheon was selected to host the headquarters of the Green Climate Fund. Yonhap

GCF to use $800 bil. to control global greenhouse gases

Songdo International Business District was selected to accommodate the secretariat of the U.N.-operated Green Climate Fund (GCF) during its board meeting Saturday.

At their meeting in Songdo, a town in Incheon and west of Seoul, the directors voted for the district over five other competitors.

The fund is sometimes called the “World Bank” for global environmental protection with its size reaching $800 billion. Annual economic benefits from the GCF headquarters are estimated to about 380 billion won or about $344 million.

“It is a huge blessing to host the largest-ever international organization to be set up in Korea,” President Lee Myung-bak said during an unexpected visit to the media briefing after the vote.

Green growth has been Lee’s key initiative from the start of his presidency, which experts say contributed to Songdo’s selection.

The selection will be endorsed at the U.N. Framework Convention on Climate Change (UNFCCC) conference to be held in Doha, Qatar, from Nov. 26 to Dec. 7.

“International sports such as the Asian Games are a one-time event. But the GCF is an organization to develop for the next 100 years, so the economic and other effects it will bring are incomparable,” Incheon Mayor Song Young-gil said.

Song placed top priority on Songdo’s selection because he believes it will help boost his city financially and inject fresh blood into the city’s development that has been stuck in the doldrums.

“Besides economic benefits, it is important that we have an organization related to climate change, which is a common task for humanity,” Song said.

On Korea beating strong competitors in Germany and Switzerland, Strategy and Finance Minister Bahk Jae-wan said the board members seemed to have agreed that Korea, which provides an excellent rags-to-riches development model, is suitable to have the body designed to help developing nations.

It was not exactly known how the vote proceeded but the six bidders were supposed to be eliminated one per round until the winner was left.

The GCF’s mission is to help developing countries reduce greenhouse gas emissions and fight other problems associated with climate change. Details on how much funds it will raise for the goal are likely to be decided at the Qatar conference.

The government expects the hosting will create more added value and jobs with financial services involving hundreds of GCF staffers, and improve the tourism industry along with GCF-related meetings and consequent accommodation, transportation and travel services.

Officials also expect the GCF to help make Korea the center for international efforts for the environment, creating synergy along with Global Green Growth Institute and the Green Technology Center Korea.

Starting next February, the temporary bureau of the GCF, which is in Bonn, will move to a 33-story building in Songdo that is being built specifically for use by international organizations. Using 15 floors of the building, the GCF will launch the official secretariat next year.

Korea will create a $40-million trust fund between 2014 and 2017 to help finance developing countries’ efforts to fight climate change, and provide a total of $7 million to help the GCF cover operating costs through 2019 _ pledges the nation promised in a bid to host the organization. <The Korea Times/Kim Rahn>