Study urges funding for next-gen infra

A new policy briefing is calling on the Bank of Korea to accelerate financing for next-generation infrastructure as rising demand from digital systems continues to strain energy resources.

The April 2026 report, released by Positive Money and the Institute for Green Transformation, said central banks must take a more active role in supporting sustainable systems as data-intensive technologies and infrastructure expand.

The briefing comes as South Korea moved to secure 273 million barrels of crude oil from Kazakhstan, Oman and Saudi Arabia following disruptions in the Strait of Hormuz, where about 70 percent of its energy supply passes through. The disruption prompted the Organization for Economic Co-operation and Development to downgrade the country’s growth forecast by 0.4 percentage points.

Rising demand from data centers is reshaping energy consumption patterns, with facilities requiring large amounts of electricity and water to power and cool high-performance systems. This is placing added pressure on power grids and natural resources.

At the same time, climate risks are increasingly tied to economic stability. The report warned that extreme weather, supply disruptions and environmental degradation are contributing to inflation and financial volatility.

Despite national targets, South Korea is falling short of its climate commitments and needs to invest about $102 billion annually to meet its 2050 net-zero goal.

The study argues that central banks should move beyond traditional approaches and actively guide capital toward modern infrastructure systems.

A key recommendation is adopting a “double materiality” framework, which recognizes that financial systems not only face environmental risks but also contribute to them. It also called on policymakers to reassess “market neutrality,” which the authors said tends to favor established, high-emission industries.