SEOUL, SOUTH KOREA, October 22, 2021 –The Seoul Metropolitan Government said it will introduce the pilot climate budget system for next year’s budget, which evaluates the impact of the budget-required city projects on greenhouse gas emissions from the budgeting stage. Such an attempt aims at minimizing the impact of Seoul’s policies on climate change while reducing greenhouse gases.
If the projects are expected to reduce greenhouse gas emissions, their size and scope can be expanded, but if they are not, their size can be reduced, or measures to offset the emissions should be made.
Under the climate budget system, the city classifies projects into four categories: a) greenhouse gas-reducing, b) greenhouse gas-producing, c) mixed, and d) neutral projects. According to how the projects affect greenhouse gas emissions, experts verify the project’s feasibility, then the departments in charge of each project prepare a climate budget plan to submit it to the budget department for final confirmation.
The projects expected to reduce greenhouse gases are allowed to expand their size and scope and have a budget priority. It is required that both the projects that are expected to produce greenhouse gases and the ones to reduce and generate greenhouse gases at the same time should submit the budget plan about how they will minimize or offset the emissions. The neutral projects,which do not affect greenhouse gas emissions, do not need to submit the climate budget plan.
For example, a project that supplies electric vehicles, replaces LEDs, provides renewable energy or expands green gases is categorized as the greenhouse gas-reducing project and is firstconsidered when budgeting. On the other hand, a project related to purchasing internal combustion engine vehicles, building new buildings, and installing streetlights is divided as the greenhouse gas-producing project, requiring submitting the climate budget plan to seek ways to reduce greenhouse gases.
The introduction of the climate budget system represents Mayor Oh Se-hoon’s strong will to fight against the climate crisis caused by the sharp rise in global temperature and achieve the “2050 Carbon Neutral City Seoul.”
In line with the central government’s introduction of the Greenhouse Gas Reduction Cognitive Budget from the 2023 budget, the Seoul Metropolitan Government will preemptively implement the climate budget system from next year’s budget.
Before its full-fledged implementation, the city will operate the pilot climate budget system for three headquarters and bureaus at the city government, including the Climate & Environment Headquarters, the Green Seoul Bureau, and the Water Circulation Safety Bureau. Based on the results of the pilot operations, the climate budget system will be expanded to all departments and institutions of the Seoul Metropolitan Government from 2023.
Yoo Yeon-sik, Deputy Mayor for Climate & Environment at the Seoul Metropolitan Government, said, “The climate budget system is meaningful because it evaluates the impact of all city budgetneeded projects on greenhouse gases and requires for the methods to reduce the greenhouse gases. The system will play an important role in achieving the city’s goal of becoming a carbonneutral city by 2050.” “We ask for citizens’ attentions and participation in Seoul’s new attempt to respond to the climate crisis.”