슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green...

33
Sept. 2012 Korea Environmental Industries & Technology Institute

Transcript of 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green...

Page 1: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Sept 2012

Korea Environmental Industries amp Technology Institute

contents

Background I

Korearsquos Policy Instrument II

Evaluation III

Conclusion amp Proposal IV

Green Products amp Services for Green Economy

I Background

Sustainable

Production and

Consumption

International

Concerns

Preparation for UN Sustainable Development

Meeting 2012(Rio+20)

Rio Summit

Meeting(1992)

amp Rio+10(2002)

Defining ldquoSustainable Consumptionrdquo

as a code of environmental conduct

in shifting to sustainable

consumption and production pattern

Discussing Green Economy

and Institutional Framework

in the context of sustainable

development and anti-poverty

International Concerns

- 3 -

International Background

Sustainable Consumption amp Production

2003 UNCSD Marrakech Process for SCP

2002 Rio +10 Sustainable Production amp Consumption

Product Environmental Policy

Promotion Green Purchasing Integrated Product Policy

Regulation WEEE RoHS ELV EURO PPW REACH etc

Emerging Green Markets

Organic NA 12 Billion UDS EU 11 Billion USD (10 growth)

LOHAS 30 of US Consumers (300 Billion USD 2005)

Ecolabel German US Canada China Japan etc

International Concerns

Establishment of Green Value Chain from green production to

consumption for the transition into a green economy

Green Economy amp Green Value Chain

Green Producer(Supply side) Green Consumer(Demand side)

Subcontractor Final Producer

Production

of Green

Product

Development o

f Green

Technology

Green Market

Green Product

amp Service

Capital

Green

Purchase

LOHAS

Public Sector

Industrial

Sector

Private

Sector

Formation of green market promoting green consumption with

the extension of green distribution and production

- 5 -

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 2: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

contents

Background I

Korearsquos Policy Instrument II

Evaluation III

Conclusion amp Proposal IV

Green Products amp Services for Green Economy

I Background

Sustainable

Production and

Consumption

International

Concerns

Preparation for UN Sustainable Development

Meeting 2012(Rio+20)

Rio Summit

Meeting(1992)

amp Rio+10(2002)

Defining ldquoSustainable Consumptionrdquo

as a code of environmental conduct

in shifting to sustainable

consumption and production pattern

Discussing Green Economy

and Institutional Framework

in the context of sustainable

development and anti-poverty

International Concerns

- 3 -

International Background

Sustainable Consumption amp Production

2003 UNCSD Marrakech Process for SCP

2002 Rio +10 Sustainable Production amp Consumption

Product Environmental Policy

Promotion Green Purchasing Integrated Product Policy

Regulation WEEE RoHS ELV EURO PPW REACH etc

Emerging Green Markets

Organic NA 12 Billion UDS EU 11 Billion USD (10 growth)

LOHAS 30 of US Consumers (300 Billion USD 2005)

Ecolabel German US Canada China Japan etc

International Concerns

Establishment of Green Value Chain from green production to

consumption for the transition into a green economy

Green Economy amp Green Value Chain

Green Producer(Supply side) Green Consumer(Demand side)

Subcontractor Final Producer

Production

of Green

Product

Development o

f Green

Technology

Green Market

Green Product

amp Service

Capital

Green

Purchase

LOHAS

Public Sector

Industrial

Sector

Private

Sector

Formation of green market promoting green consumption with

the extension of green distribution and production

- 5 -

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 3: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Green Products amp Services for Green Economy

I Background

Sustainable

Production and

Consumption

International

Concerns

Preparation for UN Sustainable Development

Meeting 2012(Rio+20)

Rio Summit

Meeting(1992)

amp Rio+10(2002)

Defining ldquoSustainable Consumptionrdquo

as a code of environmental conduct

in shifting to sustainable

consumption and production pattern

Discussing Green Economy

and Institutional Framework

in the context of sustainable

development and anti-poverty

International Concerns

- 3 -

International Background

Sustainable Consumption amp Production

2003 UNCSD Marrakech Process for SCP

2002 Rio +10 Sustainable Production amp Consumption

Product Environmental Policy

Promotion Green Purchasing Integrated Product Policy

Regulation WEEE RoHS ELV EURO PPW REACH etc

Emerging Green Markets

Organic NA 12 Billion UDS EU 11 Billion USD (10 growth)

LOHAS 30 of US Consumers (300 Billion USD 2005)

Ecolabel German US Canada China Japan etc

International Concerns

Establishment of Green Value Chain from green production to

consumption for the transition into a green economy

Green Economy amp Green Value Chain

Green Producer(Supply side) Green Consumer(Demand side)

Subcontractor Final Producer

Production

of Green

Product

Development o

f Green

Technology

Green Market

Green Product

amp Service

Capital

Green

Purchase

LOHAS

Public Sector

Industrial

Sector

Private

Sector

Formation of green market promoting green consumption with

the extension of green distribution and production

- 5 -

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 4: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Sustainable

Production and

Consumption

International

Concerns

Preparation for UN Sustainable Development

Meeting 2012(Rio+20)

Rio Summit

Meeting(1992)

amp Rio+10(2002)

Defining ldquoSustainable Consumptionrdquo

as a code of environmental conduct

in shifting to sustainable

consumption and production pattern

Discussing Green Economy

and Institutional Framework

in the context of sustainable

development and anti-poverty

International Concerns

- 3 -

International Background

Sustainable Consumption amp Production

2003 UNCSD Marrakech Process for SCP

2002 Rio +10 Sustainable Production amp Consumption

Product Environmental Policy

Promotion Green Purchasing Integrated Product Policy

Regulation WEEE RoHS ELV EURO PPW REACH etc

Emerging Green Markets

Organic NA 12 Billion UDS EU 11 Billion USD (10 growth)

LOHAS 30 of US Consumers (300 Billion USD 2005)

Ecolabel German US Canada China Japan etc

International Concerns

Establishment of Green Value Chain from green production to

consumption for the transition into a green economy

Green Economy amp Green Value Chain

Green Producer(Supply side) Green Consumer(Demand side)

Subcontractor Final Producer

Production

of Green

Product

Development o

f Green

Technology

Green Market

Green Product

amp Service

Capital

Green

Purchase

LOHAS

Public Sector

Industrial

Sector

Private

Sector

Formation of green market promoting green consumption with

the extension of green distribution and production

- 5 -

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 5: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

International Background

Sustainable Consumption amp Production

2003 UNCSD Marrakech Process for SCP

2002 Rio +10 Sustainable Production amp Consumption

Product Environmental Policy

Promotion Green Purchasing Integrated Product Policy

Regulation WEEE RoHS ELV EURO PPW REACH etc

Emerging Green Markets

Organic NA 12 Billion UDS EU 11 Billion USD (10 growth)

LOHAS 30 of US Consumers (300 Billion USD 2005)

Ecolabel German US Canada China Japan etc

International Concerns

Establishment of Green Value Chain from green production to

consumption for the transition into a green economy

Green Economy amp Green Value Chain

Green Producer(Supply side) Green Consumer(Demand side)

Subcontractor Final Producer

Production

of Green

Product

Development o

f Green

Technology

Green Market

Green Product

amp Service

Capital

Green

Purchase

LOHAS

Public Sector

Industrial

Sector

Private

Sector

Formation of green market promoting green consumption with

the extension of green distribution and production

- 5 -

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 6: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Establishment of Green Value Chain from green production to

consumption for the transition into a green economy

Green Economy amp Green Value Chain

Green Producer(Supply side) Green Consumer(Demand side)

Subcontractor Final Producer

Production

of Green

Product

Development o

f Green

Technology

Green Market

Green Product

amp Service

Capital

Green

Purchase

LOHAS

Public Sector

Industrial

Sector

Private

Sector

Formation of green market promoting green consumption with

the extension of green distribution and production

- 5 -

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 7: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Green Products amp Services

What is Green Products

Products and services which use less resource andor energy emit less pollution andor less hazardous effects to human and ecosystem throughout the whole lifecycle when compared with other conventional products and services Green Product Eco-Product Cleaner Products EPPs etc

Ecolabelling Certification for Green Products

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 8: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Ecolabelling in the World

Ecolabelling in the World

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 9: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Consumersrsquo low level of understanding amp implementation

Information Market channel Incentives

(KOREA consumer)

34

16

12

11

Do not know

green

product

Does not

vary that

much

No

purchase

motivation

Too

expensive

KETIT Green Consumption Survey 2010 BCG Global Green Consumer Survey 2008

(EU consumer)

33

23

14 13

Do not know

where green

product is

Too

expensive

Does not

vary that

much

Do not know

green

product

Major Obstacles

- 8 -

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 10: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Survey on Climate Change amp Green Life

Awareness of Climate Change 90

Green Consumption

Climate Change

Green Life

Awareness

- Inconvenient - Bothering

middot Green Life

middot Green Product

- Expensive - Lack of Stores

middot 30 of respondents practice green life style

middot 645 of respondents say eco-friendly products are pricey

Reality

ldquoAffordablerdquo ldquoIncentivesrdquo

Strategy

Sustainable Consumption amp Production

Green Consumption rarr Green Distribution rarr Green Production

Peoplersquos Awareness

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 11: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

II Green Products amp Services

Green Products amp Services for Green Economy

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 12: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Recycled Products 1

Aggregate made of blast furnace slag

Insulation material made of waste wool

Refuse-Derived Fuel amp Waste Woodchip

Blocks made of Construction waste

Pipelines made of Waste plastic

Paving Blocks made of waste rubber

Soil Conditioner Made of Food Waste

Fiberboard made of waste wood

Green Products amp Services

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 13: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Energy Saving Products 2

LED Lighting Energy Storage

Solar Lighting Wind Power

Condensing Boiler Heat Pump Air Conditioner Electric Vehicle LED Monitor

Green Products amp Services

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 14: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Water Saving Products 2

Water-Saving Showerhead Water-Saving Faucet

Water-Saving Toilet Water-Pressure Reducers

Green Products amp Services

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 15: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Health-Care Products 3

Natural Paints Asbestos-free Insulation No-VOCs Furniture

No-VOCs Wallpaper Lead-free Water Pipeline Water Purifier Air Cleaner

Green Products amp Services

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 16: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Eco-Services 4

15

Home Energy Grid Organic Distribution Eco-Tourism

Furniture Rental Eco-Housing Eco-Hotel

Green Products amp Services

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 17: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

III Korearsquos Policy Instrument

- 16 -

Green Products amp Services for Green Economy

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 18: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Korearsquos Green Product Policy

Eco-Labelling Scheme

Carbon Footprint Labelling Scheme

Green Store Designation System

No purchase motivation

Too expensive

Do not know green product

Do not vary that much

Green Public Procurement

Green Credit Card Initiative

- 17 -

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 19: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Eco-Labelling Certification for high-quality and environmentally

excellent products (since 1992)

Production amount of certified products(trillion KRW)

2004 2005 2006 2007 2008 2009 2010

16

33

85

125 128

198

25

Certified Products

Certified Companies

1992 1995 1998 2001 2004 2007 2008 2009 2010

37 82

108 186 126

85

326 182

1536

445

1175

5105

1369 1455 1636

6005 6531

7879

Enactment of Green Purchase Act

Eco-Labelling Scheme is intended to

middot Provide consumers with better information and raise their awareness

middot Promote the production and consumption of green products

- 18 -

Ecolabelling Program

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 20: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

The amount of GHG from the entire process of production is labelled

on the product

Raising the public awareness of climate change as well as green

consumption

Certified Products

2009

111

301

434

2010 20118 2011 12

500

- 19 -

Carbon Footprint Labelling

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 21: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Eco-Label Cabon FootprInt

Label

General

durable

goods

Production

Goods

amp Service

Energy Use

Product

Electric Appliance

amp Electronic Goods

Furniture amp

Building

Materials

Daily

Consumables

amp Others

Office Machine

amp

Consumables

General

non-durable

goods

- 20 -

Certified Green Products

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 22: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

(Unit KRW billion 1USD = 1174 KRW)

255

2004

787

2005

862

2006

1343

2007

1584

2008

1630

2009

1641

2010

Green Purchasing Law enforced

The scale of public procurement 9~16 of GDP

Green purchase obligation according to ldquoLaw on green product

purchase promotionrdquo in 2005

- total of 28642 organizations are included

Green procurement purchase contributes green market

- Growth in green market 65times to KRW 164trillion in 2010

- 21 -

Green Procurement Act

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 23: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

The role of big companies and SMEs is crucial in the spread of

culture on green production and consumption

168

2006

205

2007

239

2008

271

2009

300

2010

(Unit KRW billion 1USD = 1174 KRW)

Conclusion of Voluntary Agreement between the government and

companies to promote green production distribution and purchase

(rsquo05~ 138 companies)

1680 2050

2390 2705

3000

1080

7000

9000 10000

11000

rsquo06 rsquo07 rsquo08 rsquo09 rsquo10 rsquo11 rsquo12 rsquo13 rsquo14 rsquo15

- 22 -

VA for Green Purchasing

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 24: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Retailer plays as hub for the PR and Sale of Green Products

Green Store (since April 2010)

Eco-friendly designed stores to promote the publicsrsquo green

consumption by providing green products

Assessment on the whole processes from construction to

operation including energy and waste reduction

Pilot project in 11 green stores

Power saving(4596kWh) Water Saving(3675)

Waste Reduction(1156t) GHG Reduction(2322t CO2)

- 23 -

Green Store Designation Program

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 25: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Starting with the issuance of the

first Green Credit Card to President

Lee Myung-Bak (20 July 2011)

200000 cards issued (14 Oct 2011)

ltPresident Lee Myung-Bak receives Green Cardgt

Government awarding points to each home according to the reduction of electricity water and gas

Manufacturer providing 1~5 green points with purchase of green products

Local governments discount their public facilities to green card holder Accumulating 100~200 points with use of public transportation

- 24 -

Green Credit Card Initiative

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 26: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Major Incentives for Green Credit Card

Local government

Manufacturing company

Distributor (affiliate)

Green living service

Financial company

Accumulate carbon points

discount on museum and public service

When purchasing green product

Point accumulation

When purchasing goodsservice

Point accumulation

When using mug cup and having an eco-tourism

Point accumulation

When making a card payment including public transportation fare etc

Point accumulation

Green Card System

Green Credit Card

Purchase of Green Product

Payment of local taxes

Cinema ticket

Hotel voucher

Donation for environment and welfare

Payment of Apartment Expenses

Conversion into frequent flyer miles

Restaurant voucher

- 25 -

Green Credit Card Initiative

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 27: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Green Card PR in Distribution Stores

Hanging Banner in store

Green product warbler

Green Card

banner in store

Green Card PR

on counter

Green Payment System

Demonstration by the Minister of Environment

- 26 -

Green Credit Card Initiative

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 28: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

IV Evaluation

Green Products amp Services for Green Economy

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 29: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

The market power stemming from the

enlargement of green procurement

purchase influenced the private

consumption to increase at the same

time

2004

2009

2010

16

189

40

25

2015

Expansion of Green Product Market Scale

This ultimately lead to a extension of

green production

(Unit KRW trillion 1USD = 1174 KRW)

Green Product Market

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 30: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

The public institutions have reduced GHG by 276 million tons and created 585 jobs for 5 years through green purchase (KRW 48 trillion)

Job creation Cited Employment inducement Coefficient (14 personsKRW 1B) announced by the Bank of Korea

GHG Reduction GHG reduction with purchase and use of 19 items such as computer office machine furniture etc

2005 2006 2007 2008 2009 2010

22 67 105

127 132 113

16

48

75 91 94

81 108

316

495

601

620

538

GHG reduction(1000tons)

Economic benefits (KRW 100 million)

Jobs(persons)

- 29 -

Green Procurement Effects

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 31: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

For a Green Economy-Koreas Green Card Scheme

V Conclusion and Suggestions

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 32: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Conclusion and Suggestions

Korearsquos Green Product Policy Boosts Green ProductionDistribution Leading to a Green Economy

Green consumption motivates green production technology development and green

distribution channel

Follow Global Recommendations in Green Consumption and Production and Increase Cooperative Efforts

Exploit Korearsquos experiences with green consumption in establishing green growth model

for Asia Pacific region

Co-host global conferences on green consumption and production (Rio+20(June 2012))

UNESCAP UNEP Consumer International etc

Seek opportunities for policy exchange regarding green consumption guidelines and

green product DB

Green value chain Consumption rarr Distributionrarr Production

Thank You

Korea Environmental Industries

amp Technology Institute

Page 33: 슬라이드 1 - 綠色貿易資訊網 Seok.pdfBCG Global Green Consumer Survey, 2008 KETIT Green Consumption Survey, 2010 (EU consumer) 33 % 23 % 14 % 13 % Do not know where green

Thank You

Korea Environmental Industries

amp Technology Institute