[DigitalToday reporter Ji-young Lee] IBK Industrial Bank of Korea said on March 25 it signed a memorandum of understanding with KIS Asset Valuation to build a basis for cooperation on climate finance, as it seeks to strengthen its capabilities in responding to climate finance.

The agreement was set up to respond to changes in the climate finance environment, including activation of green finance, expansion of transition finance and 대응 to carbon markets, and to strengthen financial institutions' expertise.

The two institutions will cooperate across climate finance, including external reviews and advisory work to assess the suitability of green loans, external reviews and joint research on transition finance, and carbon credit price evaluation and analysis.

KIS Asset Valuation is a specialist institution that conducts fair value evaluations of financial assets and alternative assets. It has capabilities in providing carbon credit price information and conducting external reviews of green, ESG and transition finance. Based on this, it is expected to contribute to activating climate finance by providing timely results of suitability reviews for green loans.

An IBK official said the agreement would advance its screening system for green loans and strengthen its capabilities in responding to transition finance and carbon markets. The official added the bank would continue to enhance its execution capabilities in climate finance and respond systematically to market changes.