LG Electronics Launches Clean Development Mechanism Business in India
Seoul, Korea, July 12, 2009 - LG Electronics (LG) announced today that it will develop a Clean Development Mechanism (CDM) business in India that will help securing carbon credits. The CDM was developed under the Kyoto Protocol as a cost effective way to limit overall global greenhouse gas emissions.
Under the CDM, an industrialized nation participating in a project to reduce greenhouse gas emissions in a developing nation is entitled to receive carbon credits from the United Nations. LG’s Eco Strategy Team under the leadership of the company’s CTO teamed up with the local LG Electronics operation to develop a CDM business after determining through extensive research that India offered a unique environment to put certain theories to the test.
“As a leading company in electronic home appliances and information technology, we have a social responsibility to lead by developing solutions to today’s environmental challenges,” said Dr. Woo Paik, Chief Technology Officer at LG Electronics. “Through the Clean Development Mechanism business we will help reduce global emissions while also securing carbon credits. This will help us to be compliant with the UN Framework Convention on Climate Change scheduled after 2012.”
The power consumption of LG’s brand new high-efficiency refrigerators will be compared to 2008 models to determine the company’s carbon credits. In the case of India, the United Nations is offering 0.8kgs of carbon emission rights in exchange for a reduction in consumption equivalent to 1KWh of electricity.
Per UN requirement, LG Electronics invited stakeholders including local residents to the Taj Palace Hotel in New Delhi on July 11 to hold open forums and public hearings introducing the CDM business. The CDM methodology regarding the production and sale of high-efficiency refrigerators was registered with the UN in September 2008. CDM is the only broadly-approved global standard universally recognized by member governments. LG will begin the business of securing carbon emission rights once its business proposal is accepted by the Indian government in July this year and by the UN afterwards.
LG has set a goal to raise the energy efficiency of refrigerators produced in India by an average of five percent annually over the next ten years. Even as of now, LG refrigerators have the highest energy efficiency ratings in India. LG refrigerators also receive highest ratings from the Indian consumers as well as it has held number one market share position in India in recent years.
With the launch of the CDM business, LG is taking a leading position as a solution provider in dealing with India’s widespread shortage of electricity, primarily due to infrastructural issues. India’s high CO2 emissions and over-pollution due to excessive reliance on fossil fuels is also of concern for the developing nation. LG expects to benefit from credits generated by the CDM program as well as contributing to local employment as refrigerator production increases over the next decade. Moreover, through company-wide efforts, LG is working to reduce greenhouse gases by developing highly-efficient products and smart green technology. Earlier this year LG announced that it plans to reduce its greenhouse gas emissions by 30 million tons annually by 2020.
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About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units – Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world’s leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines. LG has signed a long-term agreement to become both A Global Partner of Formula 1™ and A Technology Partner of Formula 1™. As part of this top-level association, LG acquires exclusive designations and marketing rights as the official consumer electronics, mobile phone and data processor of this global sporting event. For more information, please visit www.lg.com.
About Clean Development Mechanism (CDM)
The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing industrialised countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries. If an industrialized nation helps reduce greenhouse gas emissions in developing nations, the United Nations grants an equivalent quantity of carbon emission credits to the industrialized nation in return.