Analysis of Greenhouse Gas Emission Impact Leads to Classification and Review of Projects into Reduction, Emission, Mixed, and Neutral Types
2023 Budget Plan to Expand Implementation Across All Seoul City Agencies
[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 5th that it will introduce a ‘Climate Budgeting System’ that considers the impact of greenhouse gas emissions from the budget planning stage for next year’s budget. The purpose is to minimize the impact of Seoul’s policies on climate change and to reduce greenhouse gas emissions.
The Climate Budgeting System evaluates the impact of greenhouse gas emissions for budget projects, expanding projects expected to reduce emissions and scaling down projects expected to emit emissions or preparing measures to offset emissions.
Depending on how the project affects greenhouse gas emissions, it is classified into one of four categories: reduction, emission, mixed, or neutral. After expert feasibility verification, a climate budget report is prepared and reflected in the final budget plan.
‘Reduction projects’ expected to reduce greenhouse gases calculate the reduction effect and either expand the project or prioritize it in budget allocation. ‘Emission projects’ or ‘mixed projects’ that involve both reduction and emission must secure additional budgets to minimize or offset greenhouse gas emissions. ‘Neutral projects’ do not affect greenhouse gas emissions and are excluded from the climate budget report preparation.
For example, electric vehicle distribution, LED replacement, renewable energy distribution, and green space expansion fall under ‘reduction projects’ that reduce greenhouse gases and are therefore prioritized in budget allocation. On the other hand, purchasing internal combustion engine vehicles, building construction, and streetlight installation are ‘emission projects’ that cause greenhouse gases due to increased fuel consumption, so budget plans seek reduction measures to implement emission cuts.
Seoul City will proactively introduce the Climate Budgeting System starting with next year’s budget to actively respond to greenhouse gas reduction, while the government’s planned ‘Greenhouse Gas Reduction Aware Budgeting System’ is set to be applied from the 2023 budget. Initially, the system will be piloted in the 2023 budget proposals of three bureaus: the Climate and Environment Headquarters, the Green City Bureau, and the Water Circulation Safety Bureau. Based on these results, the 2023 budget plan will be expanded to all Seoul City agencies.
Yoo Yeon-sik, head of the Climate and Environment Headquarters, said, “The Climate Budgeting System is expected to play a key role in achieving carbon neutrality by 2050 by analyzing the greenhouse gas impact of all budget projects and mandating reduction efforts. We ask for the interest and participation of citizens in Seoul City’s new attempt to respond to the climate crisis.”
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