South Korea Chosen as Host for the UN's New $100 Billion Green Climate Fund

South Korea has beaten competition from Germany, Mexico, Namibia, Poland, and Switzerland, to be announced as the host for the UN’s new Green Climate Fund (GCF); the headquarters of which will be based in Songdo, Incheon City.

Richer members of the UN have agreed to create a fund that will provide $100 billion of investment a year up until 2020 to aid poor countries develop their renewable energy sectors, make a faster transfer to cleaner technologies, and adapt to unavoidable climate change impacts.

The GCF was proposed at last year’s UN climate change summit in Durban and has been formed to manage that $100 billion a year.

There has been no final plan released to state exactly how the $100 billion will be raised, although some ideas include the introduction of new taxes on international shipping and aviation.

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The plan does have its critics, with some industrialised countries saying they can’t afford it committing to provide the cash for a green investment fund, and poorer countries saying that the $100 billion will not be enough.

The appointment will boost South Koreas reputation as a clean technology hub. Lately the south-east Asian nation has pledged to a multi-billion dollar green stimulus plan, and has set itself ambitious emission reduction targets.

By. Joao Peixe of Oilprice.com