LG has become the first company to receive Certified Emission Reduction (CER) credits in the appliance industry, from the Clean Development Mechanism (CDM) project encouraged by the United Nations Framework Convention on Climate Change (UNFCCC).
Choong-hak Lee, LG executive vice president and head of corporate social responsibility efforts:
“We are delighted to be able to actively respond to today’s environmental challenges with our innovative products and solutions. LG is serious about its responsibility to the planet and as a leading global appliance company, we are committed to working with the UNFCCC.”
Established at the Kyoto Protocol, the CDM awards emission-reduction projects in developing countries with CER credits, with each credit equal 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 India, LG acquired CER credits for its energy-efficient refrigerators. The project received 700 tons in CER credit earlier this month. LG expects to cut 5.8 million tons of CO2 for the refrigerator project over the next decade. Credits earned through this effort expect to create as much as $3.4 million more revenue, of which a part will go to aid impoverished women and children in India.