173,000 tons of carbon credits recognized for lowering electricity consumption with energy-efficient refrigerators

LG Electronics has been recognized for 173,000 tons of carbon credits by the United Nations Framework Convention on Climate Change (UNFCCC) Executive Board through high-efficiency refrigerators produced and sold in India.

LG Electronics launched a high-efficiency refrigerator distribution project in India in 2013 after receiving approval from the Executive Board of the United Nations Framework Convention on Climate Change. By producing and selling energy-efficient refrigerators, the company received carbon credits in return for the reduction in electricity consumption.

The inverter linear compressor installed in LG refrigerators is cited as a key success factor in the high-efficiency refrigerator distribution project. The inverter linear compressor offers high efficiency and superior performance by combining a linear compressor, which allows for more precise control than a standard compressor, with inverter technology that operates the motor only as much as is necessary.

According to the 'Guidelines on External Project Feasibility Assessment and Reduction Amount Certification' recently announced by the Ministry of Environment, carbon credits acquired by domestic companies at overseas business sites since June 2016 can be sold domestically. Of the total 173,000 tons acquired by LG Electronics in India, 62,000 tons are eligible for domestic sale. This amounts to approximately 1.4 billion won.

LG Electronics plans to reduce a total of 1.6 million tons of greenhouse gases by 2023 by continuously distributing high-efficiency refrigerators in India. India not only suffers from an electricity shortage due to outdated power generation facilities, but also faces serious environmental pollution problems caused by carbon dioxide and other sources because it primarily produces electricity using fossil fuels.

LG Electronics plans to strengthen its eco-friendly management through a virtuous cycle of developing, producing, and selling high-efficiency products by reinvesting profits from the sale of emission allowances domestically into greenhouse gas reduction projects.

Lee Sang-jin, Chairman of the Korean Standards Association, stated, “This is an excellent example of a domestic company receiving recognition for greenhouse gas reductions through the production and sale of high-efficiency products overseas,” adding, “I hope that such achievements will be expanded to other domestic companies.” The Korean Standards Association is a verification body for greenhouse gas reduction projects designated by the United Nations (UN).

Lee Chung-hak, Executive Vice President and Head of Management Support at LG Electronics, emphasized, “We will actively fulfill our corporate social responsibility by continuing eco-friendly management that enables a virtuous cycle, such as using the profits from the sale of carbon credits for investments aimed at reducing carbon emissions.”