NEW YORK, USA (AVING) -- <Visual News> LG Electronics announced today that it will develop a Clean Development Mechanism(CDM) business in India that will help securing carbon credits. The CDM was developed under the Kyoto Protocol as a cost effective way to limit overall global greenhouse gas emissions.
Under the CDM, an industrialized nation participating in a project to reduce greenhouse gas emissions in a developing nation is entitled to receive carbon credits from the United Nations. LG's Eco Strategy Team under the leadership of the company's CTO teamed up with the local LG Electronics operation to develop a CDM business after determining through extensive research that India offered a unique environment to put certain theories to the test.
The power consumption of LG's brand new high-efficiency refrigerators will be compared to 2008 models to determine the company's carbon credits. In the case of India, the United Nations is offering 0.8kgs of carbon emission rights in exchange for a reduction in consumption equivalent to 1KWh of electricity.
Per UN requirement, LG Electronics invited stakeholders including local residents to the Taj Palace Hotel in New Delhi on July 11 to hold open forums and public hearings introducing the CDM business. The CDM methodology regarding the production and sale of high-efficiency refrigerators was registered with the UN in September 2008. CDM is the only broadly-approved global standard universally recognized by member governments. LG will begin the business of securing carbon emission rights once its business proposal is accepted by the Indian government in July this year and by the UN afterwards.
LG has set a goal to raise the energy efficiency of refrigerators produced in India by an average of five percent annually over the next ten years. Even as of now, LG refrigerators have the highest energy efficiency ratings in India. LG refrigerators also receive highest ratings from the Indian consumers as well as it has held number one market share position in India in recent years.
With the launch of the CDM business, LG is taking a leading position as a solution provider in dealing with India's widespread shortage of electricity, primarily due to infrastructural issues. India's high CO2 emissions and over-pollution due to excessive reliance on fossil fuels is also of concern for the developing nation. LG expects to benefit from credits generated by the CDM program as well as contributing to local employment as refrigerator production increases over the next decade. Moreover, through company-wide efforts, LG is working to reduce greenhouse gases by developing highly-efficient products and smart green technology. Earlier this year LG announced that it plans to reduce its greenhouse gas emissions by 30 million tons annually by 2020.