|Despite signs of taking some initiative to promote cleaner technologies in partner countries, KDB lacks a coherent approach to integrate climate into its partner country engagement.
According to the annual report 2019, KDB states that it has been active in oversea project finance markets since 2003. KDB lists a range of investments as flagship projects in oversea markets, including financing seven liquified natural gas (LNG) carriers and pipeline of the Abu Dhabi National Oil Company (ADNOC). However, KDB has also invested in onshore wind power projects in Saudi Arabia and plans to “leverage its expertise in renewable energy projects and corporate power purchase agreements (PPA) to work with Korean companies on overseas renewable energy projects and promote the RE100 initiative.”
There is no evidence to be found that KDB engages with country clients on a policy level or supports reform processes. Its oversea engagement appears to be solely project driven. However, given KDB oversea project portfolio totalling $12.1 billion, it can be expected that the Bank actively engages with partner countries in a transition to climate neutral economies. This is also reflected in KDB’s strategic approach to scale up support for the RE100 initiative.
Recommendation: KDB should establish advisory tools that support client countries to identify clean technology solutions and link project support to technical assistance support for local governments, such as carrying out whole energy system studies and develop decarbonisation plans.