Korea Development Bank said Wednesday that it has signed an agreement with Korea Energy Agency to cooperate in alternative energy, energy efficiency and climate change mitigation.

“We hope the pact will help both sides deepen their interest in renewable energy. KDB, for its part, will up efforts to provide financial support to companies operating in the field,” said KDB’s senior executive vice president Ryu Hee-gyeong in a press release.

The pact envisions the two state-run bodies joining hands to develop new projects and provide support to promising companies in the new energy sector, utilizing their respective expertise in finance and energy technology.

The move comes as KDB seeks to become an accredited implementing institution of the Green Climate Fund, a new U.N.-led fund designed to support developing countries’ move toward low-emission and climate-resilient development.

The Korean bank has partnered with leading private players in the field, including LG CNS and Hanwha Q CELLS.

Last February, KDB led a financing package, worth 145 billion won ($125 million), for GS E&R’s project to build the world’s largest wind energy storage system at a 59.4-megawatt wind farm in Yeongyang, Gangwon Province. It was the first project financing deal ever extended to a wind energy storage project in Korea, the KDB said.

By Lee Sun-young (milaya@heraldcorp.com)