CB BureauLG Electronics (LG) has become the world’s first to receive Certified Emission Reduction (CER) credits in the appliance industry, awarded by the Clean Development Mechanism (CDM) project encouraged by United Nations Framework Convention on Climate Change (UNFCCC).
Established at the Kyoto Protocol, the CDM recognizes emission-reduction projects in developing countries with CER credits, with each credit equivalent to one tonne of CO2. This cooperative mechanism allows the country or the private sector to meet their Kyoto Protocol targets while contributing to sustainable development through environment-friendly investments.
In India, LG acquired CER credits for its enhanced energy-efficient refrigerators. The refrigerator project was awarded CER credits equivalent to the amount of reduced energy consumption. LG, which earned approximately seven thousand tons in CER credits, expects to eliminate 5.8 million tonnes of CO2 for the refrigerator project over the next 10 years. Credits earned through this effort are expected to create about US$3.4 million in additional revenue, of which a portion will be donated to assist impoverished women and children in India.