1. Research Goal and Methods

❚ Research Background and Goal

￮ Climate response funds have been established to efficiently respond to the climate crisis and secure the necessary financial resources to achieve carbon neutrality and green growth goals. Jeonbuk State began operating one such fund in 2024. 

￮ The purpose of this study is to outline the role and improvement tasks of the Jeonbuk State Climate Response Fund, determine efficient and sustainable operation plans for the fund, and suggest specialized projects for achieving carbon neutrality and responding to the climate crisis.

❚ Research Scope and Methods

￮ An analysis is performed of domestic and international climate response fund operation cases at the government level, including cases of metropolitan governments, which may be utilized as reference cases when establishing the Jeonbuk State Climate Response Fund strategy.

￮ We analyze issues associated with climate response funds in order to identify basic directions for fund operation, and a SWOT analysis is conducted to support the development of Jeonbuk State’s strategy for activating its climate response fund.

2. Conclusions and Policy Recommendations

❚ Case Analysis and Issue Review

￮ Our case analysis highlights the importance of establishing the purpose of the climate response fund and differentiating it from other funds, securing stable financial resources, establishing a quantitative evaluation system, preventing duplication, promoting performance-oriented leading projects, and engaging in private sector cooperation and financing projects. 

￮ The challenges associated with local government climate response funds can be approached by dividing them into issues around securing financial resources, executing funds, and running specialized projects. 

￮ This study reviews considerations such as 1) the diversification of financial resources and financial policy linkage measures related to securing those resources, 2) the scope of fund use, which depends on the purpose established for the fund and the effectiveness of its execution system, and 3) the importance of a roadmap for specialized projects customized to the location in question—in this case, Jeonbuk State.

❚ Basic Direction of Climate Response Fund Operation

￮ The vision, goals, and basic directions for establishing a strategy to activate the Jeonbuk State Climate Response Fund were established as follows based on our SWOT analysis and issue review.

￮ D1) Securing stable fund resources: Establishing a diversified and stable funding system for the sustainable operation of the Climate Response Fund.

￮ D2) Establishing an efficient execution system: Outlining a step-by-step roadmap and building a transparent execution system to enhance the purpose and effectiveness of the fund.

￮ D3) Promoting systematic fund projects: Strengthening policy execution capabilities by establishing a structured business system designed to enact a climate response and initiating projects customized to the region.

❚ Policy Suggestions for Activating the Climate Response Fund of Jeonbuk State

￮ (D1) Diversification of fund sources: Seek ways to secure stable financial resources through national support, emission rights sales revenue (loca distribution), expansion of special account transfers, municipal and county contributions/transfers, and linkages with other funds.

￮ (D1) Fund investment management: When the fund size is above a certain level, the profits should be used as a source of income through the entrusted management of surplus funds or through fund investment in promising climate tech startups.

￮ (D1) Utilization of green finance: Review opportunities for the local issuance of green bond-type products, climate finance cooperation programs between policy finance institutions and local governments, etc.

￮ (D2) Stage-by-stage fund management roadmap: Stage 1 “foundation construction,” stage 2 “model development,” and stage 3 “area expansion” strategies—this framework supports stage-by-stage goals and systematic management plans for the fund business.

￮ (D2) Fund council operation: Establish a system to collect opinions on fund projects through the operation of the (tentative name) Climate Response Fund Council, bringing together 14 cities and counties, public institutions, experts, and private organizations.

￮ (D2) Fund project evaluation system: Through 11 items on planning, execution, and performance, ascertain the quantitative effects of greenhouse gas reduction and other qualitative effects, to complement the feedback system.

￮ (D3) Specialized projects (basic modules): As recipients of this statewide fund, 18 projects are proposed, which span 5 areas (modules) of climate response: greenhouse gas reduction, research and investigation, education and publicity, governance, and rewards.

￮ (D3) Specialized projects (additional modules): A further 16 projects are proposed, which span an extra 4 areas (modules) of climate response: securing funding resources, expanding beneficiaries, activating ESG, and responding to new government pledges, subject to an additional review of those modules.

￮ (D3) Specialized projects (14 cities and counties): Propose another 20 special projects for each city and county, to add to local governments’ basic plans for carbon neutrality and green growth, and initiate basic cooperation projects in the region with the support of the Climate Response Fund.

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