□ The Ministry of Environment (Minister Cho Myung-rae) announced that the 2021 budget and operation of the fund were approved at the regular session of the National Assembly on December 2nd. 

□ The 2021 Ministry of Environment budget and fund is 11 trillion 171.5 billion KRW, a 17.1% increase YoY from 9 trillion 539.3 billion KRW.

○ The Green New Deal will be propeled forward, which include distribution of future vehicles, establishment of smart cities, and fostering green industries. Financial capacities will be focused on strengthening the environmental safety net and achieving carbon neutrality as a response to the climate and environmental crises.

□ During budget delibrations, the Ministry of Environment budget and fund approved by the National Assembly was increased by about 93.8 billion KRW compared to the government bill.

○ Around 177.1 billion KRW were procured to establish the foundation for implementing the 2050 carbon neutrality goal, climate crisis flooding response, support for hydrogen fueling stations, and responding to African swine fever outbreaks.

○ In consideration of implementation time period and implementation possibility, the subway station air quality improvement project, public sewage and waste water sanitation facility expansion and systems servicing, organic bio-gasification facility installation project budgets were slashed by 83.3 billion KRW.

□ The summary of the 2021 budget and fund operation plan are as follows.

① Propeling forward the Green New Deal to accelerate the green transition

○ There will be a 4.5 trillion KRW investment into Green New Deal financial projects.

○ (Distribution of future vehicles) Electric and hydrogen vehicle distribution is the mainstay project of the Green New Deal. Large budget allocations will be made to expand and establish charging stations as well as to accelerate the creation of infrastructure for distributing future vehicles.

- In addition, the hydrogen procurement budget which is a major part of hydrogen charging station operations will be supported* until 2025. 1.47 billion KRW will be newly allocated toward subsidizing hydrogen procurement in order to increase economic and business feasibility.  

* (Subsidy recipients) Hydrogen charging station operators that experienced deficits last year (excluding research purpose stations)

* (Method) A 70% subsidy of hydrogen gas procurement price less break-even point price (about 2,800 KRW/kg)

※ Establishment of electric cars and charging station infrastructure: 800.2 bilion KRW (2020) → 1 trillion 226 billion KRW (2021)

※ Hydrogen vehicle distribution: 349.5 billion KRW (2020) → 441.6 billion KRW (2021) 

○ (Smart green cities) Tailored climate change response and environment improvement solutions will be provided to 25 regions. Regional green transition initiatives and promotion of success cases will be encouraged.

※ Smart Green City: (2020 supplementary budget) 1billion KRW (establishment of comprehensive plan) → (2021) 52.6 bilion KRW 

○ (Fostering green industries) Establishment of green convergence clusters, supporting green innovation businesses, nurturing green technology professionals to establish foundation for innovation and growth.

※ Establishment of clean air industry clusters: (2020 supplementary budget) 2 billion KRW→(2021) 14.6 billion KRW

※ Establishment of biomaterial development facility: (2020 supplementary budget) 1.6 billion KRW→(2021) 5.7 billion KRW

※ Loan for nurturing future-oriented green industry: (2020 supplementary budget) 200 billion KRW → (2021) 311.1 billion KRW

※ Nurturing professionals in green convergence technology: (2020 supplementary budget) 9.4 billion KRW → (2021) 39.6 billion KRW

○ (Land and ecosystem green recovery) There will be large increases to protect core nature reserves for recovering of urban ecosystem axes to implement natural ecology services and for the preservation and sustainability projects of national parks. 

※ Recovery of urban ecosystem axes: (2020) 1.3 billion KRW (2 regions)→(2021) 11.6 billion KRW (8 regions)

※ Preservation projects of national parks' core natural reserves: (2020) 13.8 billion KRW→(2021) 55 billion KRW

② Creating a foundtaion to achieve the 2050 carbon neutrality goal 

○ During National Assembly budget delibrations, 12.5 billion KRW were newly set aside to establish and launch implementation action plans for the LEDS to be submitted late this year.

○ (Public sector plan for achieving 2050 carbon neutrality) There will be renewable energy installations and carbon nutrality demonstration projects in 6 public bulidings and environmental infrastructures will be launched in order to encourage entry into the private sector.

※ Support project for discovery of public sector 2050 Net-Zero models: (Newoly established in 2021) 6 projects, 1.8 billion KRW

○ (Implementation of carbon neutrality goal) We will create specific scenarios for the future through analysis of emission reductions by industry sector. We will create the basis for legislative changes and sectoral emission reduction plans through analysis of socioeconomic damages and costs from climate change.

※ We will create specific scenarios for implementing 2050 carbon neutrality, and conduct research into socioeconomic impact due to climate change (2021), 2.5 billion KRW

○ (Supporting local municipalities' carbon neutrality action plans) We will support local municipalities' efforts to respond to climate change and accelerate their carbon neutrality action plans.

※ Support project for local municipalities' carbon neutrality implementation: (newly established in 2021) 3.43 billion KRW

○ (Shoring up public support and international cooperation) We will create social consensus around carbon neutrality and encouraging the spread of climate-friendly action in daily life through participation campaigns. We will also strengthen international cooperation.

※ Nationwide campaign for carbon neutrality: (newly established in 2021) 1.2 billion KRW

※ International climate change response cooperation: (2020년) 1.8 billion KRW → (2021) 2.6 billion KRW

○ (Support for GHG direct regulation companies) We will support emission trading energy intensive companies when shifting to high efficiency facilities in order to encourage industries to actively transition to carbon neutrality.

※ Support for GHG direct regulation companies: (newly established in 2021) 5 billion KRW

③ Secure safe drinking water and reinforce flood prevention measures

○ The budget for establishing an environment for safe and anxiety-free use of water resources and for responding effectively to climate change crises has been increased.

○ (Reinforcement of flood response) We will make improvements to anti-flooding measures in order to establish fundamental and permanent responses to climate crises.

- We will preempt and respond quickly to floods by creating flood forecasting systems through use of Big Data collected by sensors, automated analysis and prediction of floods, expanded installations of water level observation posts and small rainfall observation radar.

※ Comprehensive study on water resources: (2020) 12.3 billion KRW → (2021 goverment bill) 10.8 billion KRW → (2021 final budget) 12.3 billion KRW 

※ Floodgate installment and improvment project: (2020) 28.6 billion KRW → (2021) 49.9 billion KRW

○ (Smart water management) Throughout the entire water management process from dams to water supply to sewage treatment, we wil implement smart water management systems* based on AI and IT to ensure the supply of safe and clean water. 

* IoT and AI technologies will be used to automate observation of water volume and quality in dams and reservoirs as well as the household tap. Also, we will ensure the supply of clean tap water through real-time leak detection and responses.

※ Smart safety management of dams: (newly established in 2021) 15 billion KRW

※ Metropolitan waterworks smart management system: (2020 supplementary budget ~ 2023 total of 235.6 billion KRW): (2021) 18.9 billion KRW

※ Regional waterworks smart management system: (2020) 381.6 billion KRW → (2021) 426.4 billion KRW 

※ Establishment of smart sewage management system (2020 supplementary budget ~2024 total of 372.2 billion KRW): (2021) 20.4 billion KRW

○ (Reinforcing purification plant hygiene management) In order to prevent reoccurence of larvae in tap water, 72 water service providers (local municipalities and waterworks) will fundamentally block the influx and proliferation of larvae in 123 purification plants, and continue to reinforce hygiene management.

※ Hygiene improvement in purification plants (2021~2022, total project expenses 229.7 billion KRW): (newly established in 2021) 41.2 billion KRW

④ Expansion of financial investment to respond to current environmental issues such as fine dust and resource circulation

○ (Reducing fine dust) We have set aside budget for the smooth implementation of the 2nd Fine Dust Seasonal Management project and reinforced sector-based emission reduction responses.

- Also, we will redouble our efforts to protect our peoples' health through scientific gauging and observing fine dust with state-of-the-art equipment and by focused management of vulnurable regions.

※ Service vehicle emission reduction project: (2020) 602.7 billion KRW → (2021 final approval) 628.2 billion KRW

※ Electric excavator procurement assistance project: (2020) 1 billion KRW → (2021 final approval) 4 billion KRW

※ Next generation remote equipment introduction and 3 dimensional tracking and management: (2020) 9 billion KRW → (2021) 17.4 billion KRW 

※ IoT systems installation in small and medium sized businesses project: (2020) 640 million KRW → (2021) 1.9 billion KRW

※ Focused management of fine dust vulnerable regions: (newly established in 2021) 3 billion KRW 

○ (Wholesale transition to resource circulation) The prolonged COVID-19 situation has increased the use of disposable items and packaging. Therefore, we have increased the necessary budget for reinforcing recycling, fundamentally reducing waste, and shoring up public accountability of illegal waste. 

- We have also allocated necessary budget to showcase a model example of waste disposal facilities, which are considered unwanted public facilities.

※ Recycled product quality improvement support project: (2021) 2.6 billion KRW

※ Recycled material stockpiling project: (2020) 9.4 billion KRW → (2021) 25.9 billion KRW 

※ Multiple use packaging, tableware and collection, cleaning, and reusing system establishment support project: (newly established in 2021) 5.4 billion KRW

※ Nationwide public waste disposal facility establishment: (2020) 2 billion KRW (basic plan) → (2021) 1.5 bilion KRW (site survey)

※ One energy convergence and integrated treatment facility and Three biogas hydriding facilities: 2.3 billion KRW (2021)

[Follow up plan]

□ Kim Beop-Jeong Director of the Planning and Coordination Office, Ministry of Environment said, "the 2021 Ministry of Environment budget focuses on creating a safe living environment during these times of climate crisis. Also, the budget reflects our determination to achieve carbon neutrality and propel the Green New Deal forward."

○ He added, "We have made sturdy advance preparations and are doing our utmost in order for all our people to feel the tangible effect of our efforts."