LG Electronics (LG) has become the world’s first to receive Certified Emission Reduction (CER) credits in appliance industry, from the Clean Development Mechanism (CDM) project encouraged by the United Nations Framework Convention on Climate Change (UNFCCC).
Established at the Kyoto Protocol, the CDM awards emission-reduction projects in developing countries with CER credits, where each credit is equivalent to one ton of CO2. This cooperative mechanism allows the country or the private sector to meet their Kyoto Protocol targets while contributing to the sustainable development of developing countries through environmentally-friendly investments.
In the Indian market, LG acquired CER credits for its enhanced energy efficient refrigerators. It has been aggressively pushing ahead with the CDM project to acquire CER credits, as it has started producing and selling high efficiency refrigerators in India from Feb. 2013, reducing energy consumption.
LG India earned approximately 7,000 tons in CER credits. The company is also planning to eliminate an additional 5.8 million tons of CO2 over the next 10 years and contribute to the improvements in power shortages and environmental problems persisting in India. Credit of 5.8 million tons is expected to create EUR 3.1 million (3.9 billion won or US$3.37 million) in additional revenue.
“We are delighted to be able to actively respond to today’s environmental challenges with our innovative products and solutions,” said Choong-hak Lee, executive vice president and head of LG’s corporate social responsibility efforts. “LG is serious about its responsibility to the planet and as a leading global appliance company; we are committed to working with the UNFCCC.”
The company will donate a portion of the sale proceeds to support impoverished women and children in India.
Through the Clean Development Mechanism (CDM) project established in the Kyoto Protocol, each company will be awarded CER credits equivalent to the amount of reduced greenhouse gas emissions in developing countries by investing its technology and capital.
With old-fashioned power plants and inefficient energy consumption, India also has environmental challenges, including air pollution and CO2 emissions, since the nation generates power using fossil fuels, to cater this situation, LG Electronics constantly researches and introduces a full range of innovative, greener products and services, and continues to be a leader in developing green innovations. It always looks for innovative ideas and technologies which will support the efforts as, a leading company in practicing environmental management.