CURRENT STATUS AND UPDATED ISSUES OF CARBON FOOTPRINT IN KOREA

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1 Product s carbon footprint ; current status on Thailand and Republic of Korea CURRENT STATUS AND UPDATED ISSUES OF CARBON FOOTPRINT IN KOREA February 27 th, 2013 Carbon Management Office

2 CONTENTS I II III IV

3 I INTRODUCTION OF ORGANIZATION

4 I-1. History of KEITI I. Introduction of Organization Commenced Korea Eco-labeling Program (notified by Ministry of Environment) Established legal base of Korea Ecolabeling Program (Act on Environmental Technology Development and Support) Joined GEN (Global Ecolabelling Network) Restructured KELA into KOECO (Act on the Promotion of the Purchase of Environment- Friendly Products) Establishment of KEITI( , public organization) Merge KOECO & KIEST Launch Carbon Footprint Labeling Scheme(carbon emission certificate) (2009.Feb) Launch Low Carbon Product certificate (2011.Nov) 4

5 I-2. Vision of KEITI Mission I. Introduction of Organization Contribute to national sustainable development through green life and advancement in environmental technology/industry Vision Core value A leading environmental institute that pursues environmental and economic sustainability for the green powerhouse Korea Challenge Change Communication Goal Develop global top notch environmental technology Strengthen foundation for environmental industry Strengthen competiveness of ecolabeling and technology verification Cope with climate change, and spread green consumption and lifestyle Work 1-1. Upgrade ondemand env. policy projects 1-2. Support env. technology development 1-3. Disseminate successful technologies 2-1. Support env. industry policy and business setup 2-2. Support Korean env. Business abroad 2-3. Build infrastructure for env. Knowledge into ecosystem 3-1. Increase service capacity of ecolabeling scheme 3-2. Increase technology verification and global recognition 4-1. Reduce carbon emissions both in the public and private sectors, while laying a foundation for climate change response 4-2. Encourage green consumption, life cycle and business management 4-3. Design SCP projects and relevant systems 5

Establishment/revision of certification criteria Operation of the

6 I-3. Organizational Structure I. Introduction of Organization 5 Departments / 23 Offices / 1TF Establishment/revision of certification criteria Operation of the Certification Follow-up surveillance of certified products Promote distribution of certified products 6

7 II CURRENT STATUS

8 II-1. International Status of Carbon Footprint Labeling II. Current status?????? U.K. Carbon Reduction Label Sweden Climate Declaration Taiwan Product Carbon Footprint Korea Carbon Footprint Label U.S.A Climate Conscious Carbon Label Canada Carbon Counted Carbon Label Environmental footprint is upcoming in EU (incl. France) France Indice Carbon Switzerland Climatop Australia Carbon Reduction Label Thailand Product Carbon Footprint Japan Product Carbon Footprint China Product Carbon Footprint 8

9 II-2. Overview of Carbon Footprint Labeling II. Current status DEFINITION A measure of greenhouse gases in units of CO2 emission, produced throughout the entire life cycle of products such as raw material acquisition, production, transportation and distribution, use, and end-of-life stages. LEGAL BASE Support for Environmental Technology and Environmental Industry Act [Act No.10615, MOE] The fundamental law for Low Carbon Green Growth Regulations on Carbon Footprint Labeling [Notice No , MOE] Purpose Promoting a consumer-led purchasing pattern of low carbon products Encouraging enterprises to develop green technologies toward low carbon products 9

products) [Step 1] Carbon Emissions Certificate [Step 2] Low-Carbon Product

10 II-2. Overview of Carbon Footprint Labeling II. Current status Carbon Footprint Labeling Scheme Target products : All products and services (excl. agricultural, fishery, livestock products, medical products, and exported products) [Step 1] Carbon Emissions Certificate [Step 2] Low-Carbon Product Certificate Be issued when a carbon footprint product delivers its GHG reduction target The Low-Carbon product certificate will be started from October,

11 II-3. Operation system II. Current status 11

12 II-4. System boundary II. Current status 12

13 II-5. Product Category Rules II. Current status Korea Carbon Footprint Labeling s PCR is called KOCFP PCR : Product Category Rules Energy-non-using durable product, production product, service Incl. use phase of product s life cycle (43) 13

14 II-6. Low-Carbon Product Certificate II. Current status Criteria for Low-Carbon Product Certificate Criteria 1 : Average Carbon Emissions Meet average value of carbon Emissions among previous Carbon Emissions certified products in the same product category Criteria 2 : Carbon Reduction Rate Meet 4.24% carbon reduction rate per 3years which generated from Target scheme for energy and greenhouse gas emission Average Carbon Emissions Carbon Reduction Rate (4.24%/3yrs) Pa Pb Pc Pd Pa Pa+ Shall meet two criteria (Criteria 1 & Criteria 2) from Jan. 1 st 2015 Before that time, if product meets one of criteria, it can be certified before that time 14

15 II-6. Low-Carbon Product Certificate Criteria for Low-Carbon Product Certificate II. Current status ( ) General products (NICE category) EuP (NICE category) Services (NICE category) Product subcategory( 202) Class I Class II Class III Class I Class II Class III Class I Class II Class III (455 products) (203 products) (17 products) i.e.) Reference value of General products Sub category Reference unit Average carbon emission Carbon Reduction Rate(%) Shampoo gco 2 /100mL Body wash gco 2 /100mL Semi conductor (Flash memory) gco 2 /16GB Wall paper gco 2 /m

16 II-6. Low-Carbon Product Certificate II. Current status Criteria for Low-Carbon Product Certificate i.e.) Reference value of EuP Class III Reference unit Average carbon emission Carbon Reduction Rate(%) Washing machine kgco 2 /ea Desktop PC kgco 2 /ea Refrigerator (700L~800L) kgco 2 /ea Water purifier kgco 2 /ea Automobile (1000cc~1600cc) Automobile (1600cc~2000cc) kgco 2 /ea kgco 2 /ea i.e.) Reference value of Service Class III Reference unit Average carbon emission Carbon Reduction Rate(%) All services

17 II-7. Certificate status Carbon Emission Certificate (756 products) II. Current status Low-Carbon Product Certificate (75 products) NDP : Non-durable product NEUDP : Non-energy-using durable product EUP : Energy using product 17

18 II-7. Certificate status Food and beverage II. Current status 18

19 II-7. Certificate status Daily necessities II. Current status 19

20 II-7. Certificate status Electrical and electronic products II. Current status 20

21 II-7. Certificate status Automobiles II. Current status 21

22 III UPDATED ISSUES

23 III-1. Low Carbon Product and Green Technology III. Updated issues Reduce material use Ecomaterial Process improvement Increase energy efficiency in use 23

9% carbon reduction Closet (company R) Application of flush board instead of PB, MDF Application of knock-down furniture(reduction of

24 III-1. Low Carbon Product and Green Technology III. Updated issues Case 1 : Eco-material Laundry detergent (company A) Use vegetable surfactant instead of petroleum-based 6.9% carbon reduction Closet (company R) Application of flush board instead of PB, MDF Application of knock-down furniture(reduction of packaging weight and volume) 6.4% carbon reduction Flush board : wood cores placed horizontally and is covered with face veneers know-down furniture : a form of furniture that is purchased in multiple pieces and requires assembly (ready-to-assemble furniture) 24

rice(company C) Introduction of energy reduction technology (e.g. adjustment of cooling water temp.

25 III-1. Low Carbon Product and Green Technology Case 2 : Process improvement Cooked rice(company C) Introduction of energy reduction technology (e.g. adjustment of cooling water temp., utility improvement) Change of energy source(lng waste heat recovery) 27.5% carbon reduction III. Updated issues Tap water(company K) Reduction of the amount of water-intake (e.g. increase the water-intake facility, introduction of zero discharge system) 5.3% carbon reduction 25

26 III-1. Low Carbon Product and Green Technology Case 2 : Process improvement TFT-LCD glass (company S) Application of recycling technology of waste glass cullet Increase of power and utility efficiency 23.5% carbon reduction III. Updated issues Semi-conductor (company S & H) Increase of production yield, reduction of raw materials 13.4~19.3% carbon reduction 26

27 III-1. Low Carbon Product and Green Technology Case 3 : Improvement of energy efficiency in use Refrigerator (company D & L) Change of compressor and coolant Reduction of heat insulation material 12.5~23.8% carbon reduction Automobile (company H) Application of hybrid technology Product weight reduction by design change 27~29.2% carbon reduction III. Updated issues Laptop, LED TV(Company S), water purifier(company W) Improvement of standby power, Reduce the number of LED and heat insulation material 8.6~33.7% carbon reduction 27

28 III-1. Low Carbon Product and Green Technology Case 4 : Reduce material use Organic tofu (company P) Packaging weight reduction and improvement of production yield 1.7% carbon reduction III. Updated issues Coca-cola(company C) Packaging weight reduction 5.1% carbon reduction 28

29 III-2. System certification for Carbon Footprint Outline of System certification III. Updated issues Definition : System certification gives a company the authority and responsibility to calculate and verify the carbon emissions of its products. Target : Product family and a product for carbon emissions certification Evaluation(screening) items : organization, human resource, calculation and verification of carbon emissions, management Valid period : 3years Auditors : 2 auditors (one Senior auditor for carbon labeling and one auditor for environmental management system) Launched from Oct 22,

30 III-2. System certification for Carbon Footprint Process comparison III. Updated issues Current certification process System certification process Company KEITI Company KEITI Application Application of system certification Document review & on-site auditing S-certification Document review Document review On-site auditing Deliberation On-site auditing Application of p-certification * Document review Deliberation P-certification P-certification 30

31 III-2. System certification for Carbon Footprint Certification fee III. Updated issues System certification fee : US$ 10,000 * basis : one product family and one on-site ** US$ 2,300 / product family added, US$ 1,100/on-site added Product certification fee : US$2,300/a product * derivative products : US$600~1,250 60% certification fee saving (current p-certification fee : US$ 6,000) 31

32 IV INCENTIVES & PROMOTION

33 IV-1. Incentives IV. Promotion Use carbon labeled construction materials Get 2 add points Sales promotion with Greencard Consumers get Ecomoney General bidding system Evaluate environmental value with carbon labeling 33

34 IV-2. Promotion IV. Promotion World Conservation Congress 2012 Period : ~15 Place : Jeju International Convention Center 34

35 IV-2. Promotion Low Carbon Green Growth Expo 2012 Period : ~11.2 Place : COEX, Seoul 2012 World Environment Day Period : Place : Han-river IV. Promotion 35

36 IV-2. Promotion IV. Promotion Mobile messenger(kakao talk) promotion Period : ~7.31 Eco-stamp campaign - Present 5 carbon labeled products to friends, get free beverage coupon & gift - Sales : 45,000 products (47,000,000 won, US$43,500) 36

37 IV-2. Promotion IV. Promotion SNS(facebook & Twitter) promotion 37

38 IV-3. Website IV. Promotion Web address : 38

39 THANK YOU FOR YOUR ATTENTION Toward Green Consumption & Production Carbon Management Office In-Tae Jeong, Ph.D. intae.jeong@keiti.re.kr Tel. : Fax :

Carbon Footprinting Activities in Korea

Carbon Footprinting Activities in Korea Dec. 15, 2011 Approaches by Asian companies for Carbon Footprint of Products GYU-SOO JOE 1 1 About KEITI 2 Korea Carbon Labeling 3 Low-carbon product certification