• OECD negotiations on restricting public finance for new fossil fuel projects began on November 18th.

• Despite key countries’ support, South Korea's opposition led OECD negotiations in June to a stalemate.

• Civil society activists protested in Paris and Seoul to urge South Korea to stop its opposition to the OECD agreement restricting public fossil fuel finance.

• At COP29, South Korea was awarded the "Fossil of the Day” award for obstructing OECD negotiations.

November 19, 2024 (SEOUL) - With the OECD’s Export Credit meeting kicking-off in Paris on November 18, South Korea has come under intense criticism, both overseas and domestically, due to its persistent opposition to an OECD agreement restricting public finance for fossil fuel projects. As an escalation of unheeded calls for South Korea to stop supporting fossil fuel finance from 41 global civil society groups in the run-up to the OECD meeting, protests took place in Paris and Seoul reiterating the need for urgent action, and the issue was raised at the ongoing COP29 conference in Baku.

South Korea is reported to be the second-largest financier for new fossil fuel projects globally (2020–2022), following Canada. Notably, overseas fossil fuel investments have surged since South Korea declared its carbon neutrality pledge in late 2020. During a recent National Assembly audit, it was revealed that investments in new overseas fossil fuel projects by the Export-Import Bank of Korea increased by nearly 40%, rising from KRW 14.3 trillion (USD 10.97 billion) in 2017–2020 to KRW 20.3 trillion (USD 15.61 billion) in 2021–2024. This dramatic increase has sparked controversy.

The ongoing OECD negotiations aim to restrict export credit agencies from financing overseas fossil fuel projects. While current OECD guidelines already limit investment in overseas coal-fired power plants, this negotiation seeks to expand the restrictions to cover new fossil fuel energy projects in general. However, according to Bloomberg, during the OECD Export Credit Working Group meeting in June, South Korea, alongside Turkey, opposed the agreement, despite broad support from most participating countries, resulting in a deadlock. Amid this situation, and with increasing global interest in reaching a ‘Trump-proof' agreement at the OECD, global criticism of South Korea has intensified.

On Monday afternoon, French civil society organizations, including Stop Total, 350.org, and Le Bruit Qui Court, held a press conference and demonstration at Place du Trocadéro, approximately one kilometer from the OECD negotiation site. The action underscored South Korea’s blocking of international climate progress, even as other OECD nations strive to address the climate crisis.

Monday, November 18th - French groups hold an action in Paris to call out South Korea for blocking an OECD agreement restricting fossil fuel export finance (Image credit: Le Bruit Qui Court)

Soyara Fettich, Campaigner for 350.org said: "At 350.org, we know that every decision to invest in fossil fuels directly compromises the future of millions of people. Taking part in this action is a way for us to point out that South Korea, by massively financing fossil fuel projects to the tune of $10 billion a year, is acting against the commitments made in Paris in 2015 to do everything possible to stay below 1.5°C of warming. Through this mobilization, we want not only to denounce this inertia, but also to highlight the urgent need for a change of course at the heart of COP29 in Baku: to redirect the billions fuelling the climate crisis towards a just transition, where polluters finally contribute to repairing the damage they cause."

Flavie Mahalin, a Member of Stop Total said: "Stop Total is joining this mobilization because KEXIM, Korea's import-export bank, has provided substantial financial support for the Mozambique LNG project, backed by TotalEnergies. Given that the project's greenhouse gas emissions could exceed those of all EU countries combined, and that it involves the displacement of populations, we are calling on South Korea to withdraw from the project and, more generally, to stop financing fossil fuel projects".

Chloé Heulin, Coordinator of Le Bruit Qui Court said: "All the scientists are more than clear: no more fossil fuel projects should see the light of day. It's high time our governments, and South Korea in particular, took the measure of the catastrophic consequences of these projects. Climate change isn't 10 or 20 years away, it's here and now, right in front of our eyes. It's time to rise to the challenge."

The issue was also highlighted Monday evening at the world’s biggest annual climate conference, the 29th UN Climate Change Conference of the Parties (COP29), in Baku, Azerbaijan. During the ongoing negotiations, South Korea was awarded the Climate Action Network International (CAN)’s “Fossil of the Day” title for its obstruction OECD climate negotiations. This marked the first time South Korea scored first place in the award’s 26-year history (following its debut on the list with a third-place runner-up ranking the previous year).

Monday, November 18th - South Korea awarded the ‘Fossil of the Day’ award at COP29 (Image credit: SFOC)

The “Fossil of the Day” award, established in 1999, is a symbolic dishonor presented during COP to countries deemed to be hindering climate action. CAN, a coalition of over 2,000 environmental organizations from 150 countries, selects recipients based on their actions during the climate talks.

During the award ceremony, Kevin Buckland of CAN, said that South Korea’s first place ranking to be directly linked to its stance at the OECD negotiations: “A leaked government document in September revealed South Korea’s unconstructive negotiation strategy. At a time when the world is facing devastating floods, storms, and heatwaves, it is unacceptable to use public finance to support the fossil fuel industry. South Korea needs to stop dragging its feet and begin transitioning away from fossil fuel financing. BTS and Samsung may make South Korea a trendsetter, but when it comes to fossil fuel finance, the country remains stuck in the past.”

Following this global spotlight in Paris and Baku, Korean civil society groups came together on Tuesday afternoon to hold a press conference in front of the Export-Import Bank of Korea, calling on the South Korean government to restrict fossil fuel financing. The event was jointly organized by Greenpeace, Solutions for Our Climate (SFOC), the Korea Sustainability Investing Forum (KoSIF), and the Korean Federation for Environmental Movements (KFEM).

Tuesday, November 19th - Korean groups hold press conference in Seoul to call out South Korea for blocking an OECD agreement restricting fossil fuel export finance. Banner text “Call on the South Korean Government, KEXIM, and K-SURE to Cease Public Finance for Overseas Fossil Fuel Projects. Redirect South Korea’s Public Finance to Sustainable Renewable Energy to Address the Climate Crisis” (Image credit: SFOC)

Yeon-ho Yang, Campaigner at Greenpeace said: "The government’s stance disregards its international commitments to reduce methane emissions and signals a lack of will to achieve carbon neutrality. South Korea must overcome its addiction to gas and adopt a forward-looking approach to collaborate internationally on phasing out fossil fuels."

Seulgi Bae, Climate and Energy Activist at KFEM, said: "The scale of new investments in renewable energy globally was already 1.7 times higher than fossil fuels between 2020 and 2022. Investing in renewables has become the new normal. Governments are responsible for addressing carbon emissions and must make the logical choice to stop public financing of fossil fuels—especially as the climate crisis reaches unprecedented levels. As a carbon-intensive economy, South Korea should actively cooperate with the global community to reduce emissions and, as an OECD member, live up to its name by ending fossil fuel financing and leading the transition to sustainable energy."

Younglak Hong, Researcher at SFOC said: "The phase-out of fossil fuels and the decrease in gas demand are no longer aspirations – but set realities in the global trend. South Korea’s persistent attachment to outdated and dirty fossil fuels puts it behind other countries which are already limiting financing for new fossil fuel projects and pivoting to green investments. The proposed OECD Export Credit Agreement revision offers a crucial opportunity—not just for South Korea but for global public finance—to accelerate the transition. South Korea must actively support this agreement and align with the international push for sustainable development."

ENDS.

Solutions for Our Climate (SFOC) is an independent nonprofit organization that works to accelerate global greenhouse gas emissions reduction and energy transition. SFOC leverages research, litigation, community organizing, and strategic communications to deliver practical climate solutions and build movements for change.

Website: https://forourclimate.org/

Media Contacts:

• [In Baku Nov. 11-22] Yi Hyun Kim, International Communications Officer, SFOC, yihyun.kim@forourclimate.org, Signal/WhatsApp: +82 10 2985 0248

• [In Seoul] Kate Kalinova, International Communications Officer, SFOC, kate.kalinova@forourclimate.org, Signal/WhatsApp: +82 10 2656 5581