The government has increased the Ministry of Environment's budget for next year by more than 7% compared to this year. The Ministry of Environment has established a new electric vehicle conversion subsidy that supports up to 1 million won per vehicle for carbon-neutral transition and secured the largest-ever water management expense of 7.3 trillion won in preparation for extreme heavy rain.
On the 2nd, the Ministry of Environment announced that next year's budget will increase by 7.5% to 15.916 trillion won compared to this year. By institutional sector, ▲5.5 trillion won for promoting carbon-neutral policies ▲5.8 trillion won for rapid creation of social safety mats ▲4 trillion won for coexisting communities of people, nature, and regions have been allocated.
The Ministry of Environment noted that the budget for technology development in the environmental sector has increased by 19.8% compared to this year, reaching a record-high of 418 billion won. Most of the increased budget (43.7 billion won) has been concentrated on developing climate-responsive technologies.
First, regarding the promotion of carbon-neutral policies, the Ministry of Environment decided to maintain the purchase subsidies for electric and hydrogen vehicles at the same rates as this year for all vehicle types. The rates were gradually reduced from 15 million won to 3 million won from 2011 to this year, but there will be no further reductions next year. Consequently, the purchase subsidy rate for next year remains at 3 million won.
The Ministry of Environment has established a new electric vehicle conversion subsidy that provides additional support beyond the basic subsidies when replacing or scrapping internal combustion engine vehicles and purchasing electric vehicles. The electric vehicle conversion subsidy is up to 1 million won per vehicle. As a result, the maximum support amount when purchasing an electric vehicle is 4 million won. The Ministry of Environment is also introducing an electric and hydrogen bus purchase loan program (73.7 billion won) to reduce the initial vehicle purchase burden on transportation operators.
A new electric vehicle stress insurance (2 billion won) that covers the amount exceeding the existing insurance compensation limit in the event of an electric vehicle fire will also be established. The private sector will be allowed to design related insurance, with the government partially investing in it.
To transition businesses from fossil fuel-based operations to renewable energy, an air-source heat pump distribution project (9 billion won) will also be promoted. This initiative focuses on reducing greenhouse gas emissions through electrifying heating by utilizing the heat in the air. A community-led solar pension project (4.9 billion won) will also be introduced in water source management areas. This project involves installing solar energy systems in community buildings such as village halls and warehouses to sell electricity and share the revenue generated among local residents.
In addition, various other projects will be conducted, including future environmental industry nurture loans (423.5 billion won), green transition guarantees (150 billion won), and reusable container distribution projects (15.7 billion won).
Regarding the rapid creation of social safety mats, the Ministry of Environment focused on expanding the foundation for responding to climate disasters. The water management budget in preparation for extreme heavy rain has been allocated at a record high level of 7.3 trillion won. The national river maintenance budget (86.1 billion won) for flood prevention in tributaries and small rivers has been increased by 25.2%. The sewage pipeline will be maintained (385.5 billion won) mainly in areas prone to chronic flooding, and large-scale rainwater tunnels will be installed (19.9 billion won).
A total of 207,000 new manhole fall prevention facilities (11.04 billion won) will be installed, and aging water and sewage systems will be upgraded (77.29 billion won) to prevent ground subsidence (sinkholes). The budget for implementing measures against green algae, including contamination source management, will be increased by 19.6% to strengthen drinking water safety (203.7 billion won).
In relation to the coexisting community of people, nature, and regions, the government will contribute 10 billion won to resolve the issue of humidifier disinfectants. The Ministry of Environment explained, "This is significant as it expresses the government's willingness to actively address the problem along with fulfilling national responsibilities following last year's Supreme Court ruling."
A project for weddings in the National Park forest (3.5 billion won) will be established, and 500 million won has been allocated to identify the causes of insect outbreaks, such as the lovebug. A bird strike prevention project for aircraft (2.2 billion won) will also be initiated.
Vice Minister Geum Han-seung stated, "Next year's Ministry of Environment budget has been organized to support a sustainable future based on the transition to carbon-neutral green civilization, expansion of safety infrastructure in preparation for the climate crisis, and coexistence of people and the environment." This budget for the Ministry of Environment will be finalized around December this year after review and approval by the National Assembly.