Press Release

Board View

Ministry of Environment Budget for 2021… Leading Green New Deal and Enhancing Environment Safety Network


▷ The Ministry of Environment's budget and fund compilation for 2021 are planning total KRW 11.777 trillion

▷ The budget for the Green New Deal is about KRW 4.5 trillion, taking more than half of the total budget for the Green New Deal of KRW 8 trillion

▷ Expanding the budget to create a public-safe environment including safety management of tap water, prevention of floods and disasters as well as reduction of fine dust

[The compilation outline]  

The Ministry of Environment (Minister Cho Myung-rae) announced that the total expenditure of the budget and fund proposal of 2021 under the Ministry will compile KRW 11.777 trillion and submit it to the National Assembly on September 3rd.

The budget proposal is KRW 10.735 trillion, which is an increase of KRW 1.5036 trillion (17.5%) from the previous year's KRW 8.5699 trillion. The fund proposal is KRW 1.42 trillion, which is an increase of KRW 34.8 billion (3.6%) from the previous year's KRW 969.4 billion. 

As the department in charge of the Green New Deal, the Ministry of Environment will implement the Green New Deal project in a full-scale, which was began in this year with a revised supplementary budget, to accelerate the green transformation.  

Next year's Green New Deal budget proposal of the Ministry of Environment compiles KRW 4.5 trillion, taking more than half (about 56%) of the government's total Green New Deal budget of KRW 8 trillion.  

As the green mobility such as future vehicles, smart green city, green convergence cluster building project and damaged city area restoration are fully started to implement, transition into a carbon-neutral society will be accelerated. 

In addition, the Ministry focused on fiscal investments to enhance the environment safety net in order to prevent the climate crisis. 

From tap water safety to stable management of waste and fine dust reduction, the Ministry will continue to expand the safe environment for people in areas that are closely related to everyday lives.

[Key investment areas in the 2021 budget]

[Green New Deal] Implementing a full-scale Green New Deal project to accelerate the green transition  

The Ministry of Environment will invest KRW 4.5 trillion in the Green New Deal financial prject. 

The main financial projects and budget compilation of the Green New Deal led by the Ministry of Environment are as follows. 

< Expanding the supply of green mobility >

The Ministry of Environment continuously increase the supply of green mobility to build a sustainable eco-friendly traffic system without worrying about greenhouse gases and fine dust. 

The Ministry will focus on supplying electric vehicles and building charging infrastructure next year in order to supply 1.33 million future vehicles by 2025. 

※ Supplying electric vehicle·building charging infrastructure: (2020) KRW 800.2 billion → (2021) KRW 1.1120 trillion 

※ Supplying hydrogen vehicles: (2020) KRW 349.5 billion → (2021) KRW 440.8 billion  

Through this, the so-called future vehicle popularization era will unfold in a full-scale where one in 10 new automobile buyers will choose future vehicles in 2022 and one in five will choose future vehicles in 2025.

Also, the Ministry continues its utmost efforts to supply future vehicles for bus. taxi, truck, delivery two-wheeled vehicle and other various vehicle models.

※ Electric vehicle (2020→2021): 65,000→75,000 passenger vehicles, 13,000→25,000 trucks, 650→1,000 buses

※ Hydrogen vehicle (2020→2021): 10,100→15,000 passenger vehicles, 5 test trucks, 180 busses

The Ministry will continue to invest in the early scrapping of old diesel vehicles to reduce fine dust and the conversion of trucks and children's commuting vehicles into a liquified petroleum gas (LPG) vehicle. By doing so, zero deteriorated diesel vehicle (zero vehicles without low emission system) will be achieved by 2024.

In particular, the liquefied petroleum gas (LPG) vehicle conversion support project will support 135,000 one-ton trucks and 88,000 children's school commuting vehicles from next year to 2025.

As the volume of parcels increases due to COVID-19, the project expects to significantly decrease carbon emission from old diesel vehicles in everyday life and commuting vehicles for children.

※ Early scrapping of old diesel vehicles: (2020) KRW 289.6 billion → (2021) KRW 316.8 billion 

※ LPG conversion: (2020) KRW 15 billion, 10,000 trucks, 6,000 vans for children's commuting → (2021) KRW 30 billion, 20,000 trucks, 12,000 vans for children's commuting

< Smart Green City >

The Smart Green City project that supports enhancement of urban climate resilience will be implemented in 25 regions in the country. 

The Smart Green City project includes reduction of greenhouse gas emissions and improvement of water circulation to strengthen climate resilience. It also includes building eco-friendly vehicle charging stations for low emissions and resource recycling infrastructure.     

The contest for selecting project target areas are planned to start in September and make final selections in December. The selected target areas will be provided with customized climate change response and environment improvement solutions by investing a total of KRW 290.7 billion (the government subsidy of KRW 174.9 billion) until 2022.

※ Smart Green City: (2020년) KRW 1 billion (establishing a comprehensive plan) → (2021) KRW 52.6 billion 

As climate change intensifies floods and heat waves, which cause continuous public anxiety and concerns, the Smart Green City project will be the first step toward the solution of such issues through urban green transformation led by the region.

< Creating a green convergence cluster >

Among the five leading green convergence clusters, establishment of hydrothermal energy, clean atmosphere and biological material clusters, which were initiated through a revised supplementary budget of this year, will also begin to accelerate in 2021.

The hydrothermal energy* cluster (supply scale of 16,500RT) is scheduled to be established in Chuncheon, Gangwon-do by 2027. This year, its pilot projects (3 locations, 2020-2021) through a revised supplementary budget will be initiated to induce early settlement of the use of hydrothermal energy. 

* This energy is used for air conditioning and heating using physical characteristics of water which are cooler than the atmosphere in summer and warmer than the atmosphere in winter

※ The hydrothermal energy pilot projects: (a revised supplementary budget in 2020) KRW 2 billion (3 locations)→(2021) KRW 5.2 billion (3 locations)

The pilot projects are being conducted by the "Han River Flood Control Office (using wide-area raw water)", "Korea Environment Corporation, Incheon (using Ara stream)", "Han River Environment Research Center, Yangpyeong, Gyeonggi-do (using Bukhan River)". 

The "clean atmospheric industry cluster" and "biomaterial growth cluster", which started with a revised supplementary budget of this year, will be launched in a full-scale in 2021 and completed in 2022.

※ Creating clean atmospheric industry cluster: (a revised supplementary budget in 2020) KRW 2 billion→(2021) KRW 14.6 billion

※ Creating biomaterial growth cluster: (a revised supplementary budget in 2020) KRW 1.6 billion→(2021) KRW 5.7 billion

By creating clusters in the fields of clean atmosphere and biomaterial, the related green industry innovation as well as regional job creation can be achieved.

On the other hand, customized supports for each step will be strengthened for companies from start-ups to commercialization and innovation leaps to foster green industries in five areas in addition to the cluster creation.

※ Supporting eco-startups: (a revised supplementary budget in 2020) KRW 6 billion→(2021) KRW 11.25 billion

※ Supporting innovative facilities and commercialization: (a revised supplementary budget in 2020) KRW 36 billion→(2021) KRW 49.5 billion

※ Supporting green innovation companies: (a revised supplementary budget in 2020) KRW 20.27 billion→(2021) KRW 35.47 billion

< Green restoration of land and ecosystem >

The urban ecological axis restoration project, which allows everyone in the city to enjoy natural ecological services, will be expanded from two locations this year to eight locations in 2021 with the implementation of six new projects. 

※ Restoration of urban ecological axis: (2020) KRW 1.3 billion (2 locations)→(2021) KRW 11.6 billion (8 locations)

The fragmented urban ecosystem (wetlands, habitats, etc.) is connected and restored while native species habitats are also expanded to create a healthy ecosystem environment in city spaces.

For the conservation and sustainable use of national parks that represent Korea's nature and ecosystem, a conservation project on core protected areas will be significantly expanded. 

※ Conservation project on core protected areas of national parks: (2020) KRW 13.8 billion→(2021) KRW 55 billion

Also, a project to create high-quality and eco-friendly ecological exploration infrastructure (2021, KRW 30 billion) focusing on the national park lowlands will be promoted.

※ Promoting six national park characteristic projects (sky observation platform, forest experience center, marine eco experience training center, etc.)

[Water management safety] Securing drinking water safety and enhancing disaster prevention management 

Total KRW 141.1 billion will be invested from 2021 to 2022 to prevent accidents such as the tap water larvae in the Incheon area in July of this year. Also, additional KRW 26.2 billion is newly organized for next year.

Blocking the source of inflow and outbreak of larvae as well as strengthening sanitation management* will be implemented for 100 water purification plants in 60 municipalities with high priority.

* Improving insect-proof facilities such as activated carbon filter as well as purification and drainage basins, lower catchment, etc.

In addition, the public will drink and use water with less worries by organizing nearly KRW 1 trillion in water and sewage pipe network management innovation. 

The project for the improvement of old facilities for local water supply system was originally scheduled to be completed by 2028, but it will be completed early by 2024. 

※ Improving old facilities including local water supply system: (2020) KRW 489 billion → (2021) KRW 461.5 billion 

By 2022, there will be no setbacks in establishing a smart pipe network management system* (completion in 44 local governments and initiating the establishment in 77 local governments in 2021) in all local water supply system (161 local governments). 

※ Smart management of local water supply system: (2020) KRW 271.6 billion → (2021) KRW 452.6 billion 

* Using technologies such as IoT and AI, monitor water quantity and quality from dam and reservoir to faucet as well as supply clean tap water without setback through real-time water leakage detection and response

KRW 236.8 billion is established to effectively respond to disasters caused by climate crisis such as rains for the longest period of time and localized heavy rain. 

Proactive and rapid flood forecasting are enabled by automating flood prediction based on big data collected through flood sensors (water level and precipitation).

※ (Flood forecast) KRW 72.8 billion for the installation and operation of rainfall radar and hydrological observation station, utilization of AI flood forecast and flood disaster satellite research and development (R&D)

On the other hand, research and development (R&D) for a geostationary satellite payload for water disasters will be started so that it can be launched in 2027.

[Waste] Conversion of the entire resource circulation process 

As the use of disposable items and packaging materials has increased rapidly due to COVID-19, it is imperative to change the fundamental system (paradigm) of resource circulation. First, it is necessary to focus on creating a stable domestic recycling system. 

In particular, the public stockpiling, which is being promoted since the beginning of this year, will be expanded with two more recyclable stockpiling warehouses in 2021 to operate total six warehouses in order to stabilize the recyclable market. 

※ Recyclable stockpiling: (2020) KRW 9.4 billion → (2021) KRW 26 billion 

In order to reduce the source volume of disposable items and packaging materials, a new budget required for the support project of the establishment of collection, washing and reuse system for materials such as multi-use packaging materials and multi-use tableware has also been established.

※ KRW 440 million (new) for two multi-use box delivery locations and two locations of using multi-use containers for funeral halls

On the other hand, installation of a national wide-area public waste treatment facility and energy convergence and complex treatment facility will also be promoted in order to transform the waste treatment facility, which is usually considered as an unwanted facility, into a resident and environment-friendly facility. 

A national wide-area public waste treatment facility resolves public anxiety caused by illegal waste by stably disposing urgent wastes at the national level such as illegal dumping as well as harmful and disaster wastes.

The "Special Act on the Installation, Operation and Resident Supports of Public Waste Resource Management Facility" will be implemented in June of next year without any intereference.

※ Building a national wide-area public waste treatment facility: (2020) KRW 2 billion (basic plan) → (2021) KRW 1.5 billion (investigation on the location candidates)

The energy convergence waste treatment facility* is not a simple waste treatment facility but an energy production base (electricity, heat, hydrogen, etc.) that shares profits with residents and seeks to transform into a local attraction by linking with residents' preferred facilities.

※ KRW 2.3 billon for one energy convergence waste treatment facility and three biogas hydriding facilities (new)

* Integration between a waste incineration facility and cogeneration plant which produces hydrogen energy from biogas generated from food waste treatment. This allows construction of a convenient facility such as shopping mall on the ground after the waste treatment facility is installed underground  

[Air, health, etc.] Enhancing prevention management of fine dust and environmental health 

Efforts to protect peoples health from fine dust are also continued, such as scientific fine dust measurement and monitoring using advanced equipment and intensive management of vulnerable areas from fine dust. 

From 2021, the budget for the operation of environmental satellite from a ground station will expand to enable a real-time analysis and utilization of fine dust generation and movement paths using fine dust information from the satellite Cheollian 2B. (launched in February of this year)

※ Operation of the geostationary environmental satellite ground center: (2020) KRW 2.2 → (2021) KRW 8.3 billion

In addition, remote surveillance to prevent COVID-19 are promoted such as implementation of drone, UAV and other next generation remote monitoring equipment, 3D tracking management of fine dust emission source and support of IOT implementation at small workplace. 

※ Implementation of next generation remote equipment and 3D tracking management: (2020) KRW 9 billion → (2021) KRW 17.4 billion 

※ Support of IOT implementation at small workplace: (2020) KRW 640 million → (2021) KRW 1.9 billion

On the other hand, the budget for intensive management of areas vulnerable to fine dust is also newly implemented such as IoT measurement, creating a shelter from fine dust and installation of air curtain for protecting people's health from everyday fine dust.

※ Intensive management of areas vulnerable to fine dust: (New in 2021) KRW 3 billion 

As interest in public health has increased more than ever, an anticipative management of health damage in areas vulnerable to environmental pollution will be enhanced.

Before the residents make an appeal on their health damage, 21 vulnerable areas of environmental pollution will be directly visited and preemptively evaluation of health impact survey will be performed in order to continuously guarantee the environmental rights of the environmentally vulnerable people.  

※ Enhancing a preemptive management of health damage in areas vulnerable to environmental pollution: (New in 2021) KRW 2.8 billion

[The budget scale of 2021]

As above, the total expenditure of the Ministry of Environment in 2021, focusing on the implementation of the Green New Deal and water safety, was KRW 11.777 trillion, which is an increase of 16.1% from the previous year.

The budget proposal is KRW 10.735 trillion, which is an increase of 17.5% from the previous year's KRW 8.5699 trillion. The fund proposal is KRW 1.42 trillion, which is an increase of 3.6% from the previous year's 969.4 billion. Both of them are the largest amount ever.

< The trend of total expenditure and importance of the Ministry Environment /> Scale (trillion)  The total expenditure of Ministry of Environment  The trend of total expenditure scale and importance of the government

[The future plan]

The budget and fund proposals of the Ministry of Environment in 2021 will finalize by December 2nd, 2020 after going through deliberation and resolution of the National Assembly.

"Next year's budget proposal of the Ministry of Environment is planned to create a healthy natural environment and a safe living environment even in the face of climate crisis while establishing a green industry as a future growth engine," said Lee Byung-hwa, Policy Planner of the Ministry of Environment.

He added, "if the plan is finalized after the deliberation of the National Assembly, we will do our best to prepare the project so that the maximum effect can be achieved at the execution stage."