South Korea will formally end state-backed financing of overseas coal-fired power plant projects next month as part of the country’s bid to go carbon neutral by 2050. 

The Ministry of Economy and Finance on Friday announced pan-governmental guidelines on public financial assistance for overseas coal projects focused on suspending new financing.

The move is a follow-up to an announcement by President Moon Jae-in during a virtual climate summit convened by U.S. President Joe Biden in April that South Korea will stop funding coal-powered plants overseas. 

Starting next Friday, all public entities including central and regional governments will stop all new official development assistance, export financing and investment into overseas coal projects. 

The government said it will also encourage entities in the private sector to follow suit.