❍ Countries around the world are introducing various green financing systems to respond to the climate crisis, the greatest threat that the human faces. The Korean government is also introducing the ‘Greenhouse Gas(GHG) Reduction Cognitive Budget System’ from the 2023 fiscal year budget and settlement of accounts.

❍ The GHG reduction cognitive budget system is a policy tool that transforms the budget structure so that the government and local governments can achieve GHG reduction goals by evaluating in advance the impact on GHG emissions and reduction at the budgeting and spending stage.

❍ Before the full-scale introduction of the system, it is necessary to establish a customized system through the promotion of a pilot project by local governments to minimize problems that may occur in the early stage and to establish itself as an effective policy tool.

❍ In particular, the budget system can be a driving force for the transition to carbon neutrality as it is a system in which policy makers and administrators need to change their perception more than anyone else.

❍ In this issue briefing, the budget type analysis results for GHG reduction cognition based on Jeollabuk-do total budget were presented and basic direction for pilot introduction of Jeollabuk-do GHG reduction recognition was suggested.

❍ As a result of classifying budget project types for GHS reduction cognition based on 2022 Jeollabuk-do budget expenditures ‘Reduction Projects’ accounted for 4.1% of the total budget, ‘Emission Projects’ for 15.2%, ‘Complex Projects’ for 7.8%, and ‘Neutral Projects’ for 72.9%.

❍ In the case of implementation of the budget-system pilot project propulsion for GHG reduction recognition, it is necessary to implement the project by which GHG reduction effectiveness can be enhanced for a short period rather than apply total budget from the first. Afterwards, the project can be expanded.

❍ For the core process of GHG reduction impact assessment, ‘Checklist’ and ‘Reduction Unit’ methods can be used, and detailed manuals are needed in the future. In addition, the directions to writing the budget book for each project type and the review items for efficient introduction of the system were presented.

❍ The GHG reduction cognitive budget system is expected to contribute to the evaluation and monitoring of the effectiveness of climate crisis policy projects, improving the cognition of those in charge, and strengthening cooperation among departments.