The GHG responsive budget System assesses how budgets and funds managed by national and local governments impact greenhouse gas reduction and climate change. It then integrates these findings into the financial management process, encompassing budgeting and government execution.

The GHG responsive budget System was introduced in 2021 to establish a GHG responsive budget, a report analyzing the anticipated impact on greenhouse gas reduction, as part of the revision of the National Finance Act. Since October 1, 2021, related ministries have been conducting a joint pilot project on GHG responsive budgeting

Related laws 

• "Article 24 of the Framework Act on Carbon Neutrality and Green Growth in Response to the Climate Crisis 
• "Article 27, Article 57(2) of the National Finance Act 
• "Article 15.2 of the National Accounting Act 
• Article 68-3 of the National Finance Act 

5W1H

Implementation Structure

Ministry of Planning and Finance (Lead Agency) 

Ministry of Environment (Supporting Agency) 

Korea Environment Corporation (Specialized Agency)

Characteristics of GHG responsive budgeting System. 

Characteristics of GHG responsive budgeting System. When there are two or more detailed projects within a subsidiary business, the determination of whether each detailed project qualifies as a downsizing project is made on a project-by-project basis. If a subsidiary business contains one or more detailed projects classified as downsizing projects, it is selected as a target for restructuring However, if the business purposes of each sub-business within a sub-business are independent, or if the proportiooGHG responsive budget of sub-businesses identified for downsizing is extremely low, only the sub-businesses marked for downsizing can be selected as eligible for restructuring 

"The projects selected for the preparation of greenhouse gas reduction budget and fund utilization plans are determined based on both steps 1 and 2 as follows: 

Step 1: Assessing eligibility for classification as a reduction project. 

Step 2: Determining eligibility for classification as a reduction project type.“

Key Schedule

It is included in the process of formulating and settling the national budget and funds. The budget for the following year is prepared in the previous year before the budget is applied, and the corresponding settlement report is submitted to the National Assembly by May 31st of the following year.