NH NongHyup Bank buys 5,254 tons of carbon credits from farmers

NH NongHyup Bank said Monday it had purchased a total of 5,254 tons of agricultural carbon credits from 20 farms nationwide to support the reduction of greenhouse gas emissions in the agricultural sector and the spread of low-carbon farming technology.

Agricultural carbon credits are government-certified credits representing greenhouse gas reductions achieved through the adoption of low-carbon farming technology. NongHyup Bank signed an MOU with the Ministry of Agriculture, Food and Rural Affairs and the Korea Agency of Education, Promotion and Information Service in Agriculture, Food and Rural Affairs in September 2023, and has since built a system to cover farmers' carbon credit certification costs and directly purchase their credits. Through this arrangement, the bank has worked to lower the barrier to participation for farmers and actively support voluntary greenhouse gas reduction efforts in the agricultural and rural sector.

Under the emissions trading system, the government allocates annual emission allowances to businesses that produce greenhouse gases, permitting them to emit within their assigned limits. It then assesses each business's actual emissions and allows trading of surplus or shortfall allowances between businesses. This framework makes carbon credit transactions between NongHyup Bank and individual farmers possible.

NongHyup Bank purchased 1,419 tons of carbon credits in 2024, the first year of the program, followed by 8,245 tons in 2025, and has now added another 5,254 tons this year.

The credits purchased this time will be used to offset the bank's own greenhouse gas emissions in accordance with relevant guidelines.

NongHyup Bank is also pursuing a range of eco-friendly initiatives as part of its ESG management practices. The bank continues to invest in low-carbon infrastructure, including signing power purchase agreements, installing rooftop solar panels for self-consumption at branches nationwide and converting its fleet of company vehicles to zero-emission electric vehicles.

"Climate change is a critical challenge threatening the sustainability of our agriculture and rural communities," said Kang Tae-young, president of NH NongHyup Bank. "We will continue to identify and expand mutually beneficial models that provide farmers with meaningful additional income while contributing to carbon reduction."