The GHG responsive budgeting System evaluates the impact of budgets and funds operated by the national and local governments on greenhouse gas reduction and climate change. It then integrates these findings into the financial management process of local governments, including budget formulation and execution.

Related Legislation

• Article 24 of the Basic Act on Carbon Neutrality and Green Growth for Climate Crisis Response (GHG responsive budgeting System)
• Ordinances on Carbon Neutrality and Green Growth for Climate Crisis Response or Operating Regulations for the GHG responsive budgeting System implemented by each local government. 

5W1H

Progress

The Local Fiscal GHG responsive budgeting System commenced pilot projects in various regions, starting with Busan, Chungcheongnam-do, and   Eunpyeong-gu in 2022. In 2023, it expanded to include pilot projects in Jeollabuk-do, Jeollanam-do, Jeonju-si, Gwangmyeong-si, and Gangbuk-gu,   Seoul.

Operational Structure

Ministry of the Interior and Safety (Lead Agency), Ministry of Environment (Supporting Agency)

Climate Budget Classification:

 According to the guidelines issued by the Ministry of Environment for the application of the Local Fiscal GHG responsive         budgeting System, 

 the climate budget classification system is as follows:

• Step 1: In the first step of climate budget classification, projects are categorized into reduction projects and other projects based on whether the specific project is associated with greenhouse gas reduction policies.
• Step 2: In the second step, projects that pursue objectives separate from greenhouse gas reduction policies but are expected to generate additional greenhouse gas reduction effects through project implementation are categorized into reduction projects and other projects.
• Step 3: In the third step, projects are screened to determine whether they significantly increase greenhouse gas emissions. Projects are then classified into emission projects and neutral projects. 
• Step 4: Remaining projects after screening are categorized as neutral budget projects.

Budget Writing Procedure 

 According to the guidelines issued by the Ministry of Environment for the application of the Local Fiscal GHG responsive budgeting System, the the   procedure for drafting budget writing is as follows: 

The process of budget preparation

 The budgeting process according to the guidelines for the application of the Local Fiscal GHG responsive budgeting System   issued by the Ministry of   Environment is as follows