1. Korea Carbon Footprint Labelling and Its Activities June 2009

2. 1 About KEITI  Vision and Mission  Major Functions 1

3. 2 Survey Results on Climate Change Issue 2

4. 3 Korea Carbon Footprint Labelling Overview  Purpose - The purpose of Carbon footprint labelling is to promote a consumer- led purchasing pattern of low carbon goods and to encourage enterprises to develop technologies toward low-carbon goods, thus ultimately contributing to the international efforts to reduce greenhouse gases  History - Pilot project for 10 target products (May~Dec., 2008) - Launching of Korea Carbon footprint labelling (Feb. 2009) - Public notice on carbon footprint labelling in MOE (Feb. 2009) - Publishing of PCRs (Feb. 2009)  Features - Korea Carbon Footprint labelling is a voluntary program and is operated market based program under government support. - It only considers GHG emissions among environmental issues. - It consists of two steps certificate: carbon footprint emission label and low carbon product label.  Benefits - Promotion and provision of points when goods are sold at large stores that are participants in the Carbon footprint labelling certificate program. - Recommendation for government awards related to climate change - Inclusion of ‘low carbon product certificate’ goods in government- led procurement 3

5. 4  Overall Procedure of certificate program - Companies requesting a Carbon footprint labelling Certificate should submit the application form and a report of product carbon footprint results in accordance with PCRs - It consists of verification and certification in accordance with ISO 14025. - Surveillance check is conducted 2 times during certificate period. Korea Carbon Footprint Labelling Framework 4

6. 5  Types of PCR documents - There are 3 types of product category rules (PCRs), including Class1, Class2, and Class3. - Class1: for general product categories: production goods, durable goods that does not use energy, nondurable goods, and service - Class2: for energy using products (in use phase of product’s life cycle) - Class3: detailed use scenario of consumer per energy using product  System boundary by product categories - All products in Class 1 should not consider CO 2 emission in use phase. - Production goods and service in Class 1 should not consider CO 2 emission in end-of life phase. - All products in Class 2 should not consider CO 2 emission in 1 st order material production phase. Korea Carbon Footprint Labelling PCR document 5

7.  Step 1: Carbon footprint certificate - Greenhouse Gas Emission Certificate is certification of carbon foot print for products and can be referred to as carbon emission baseline for the product. - Product certified greenhouse gas emission can have below certificate mark.  Step 2: Low carbon product certificate - The Low Carbon Certificate certifies that the greenhouse gas emission certified goods satisfy the minimum reduction target presented by the government based on the Carbon footprint labelling of the good concerned. - Accordingly, a carbon discharge certificate for the good concerned is a necessary prerequisite to a low carbon goods certificate. 6 Korea Carbon Footprint Labelling Certificate 6

8. 7  The number of Certificate: 16 companies, 37 products - Non-durable goods : 24 - Energy-non-using durable goods : 5 - Production goods : 1 - Service : 1 - Energy-using durable goods : 6 Korea Carbon Footprint Labelling Certified goods 7

9.  Future Plans - Launching pilot project for low carbon product certificate(2 nd step) next year - Promoting certified low carbon product through green procurement law the end of next year which purchase low carbon products, developing benefits (12. ’09) - Launching low-carbon products certificate (early 2011) 8 Promotion & Future plans  Promotion - MOU contract between Ministry of Environment and 3 major retailers for promoting Korea carbon footprint labelling. - with E-Mart (Nov. 2008), TESCO (Jan. 2009), Lotte-Mart (Jun. 2009) - MOU contract between MOE and Foreign & Commonwealth Office, UK for supporting carbon footprint labelling of SM&E (Apr, 2009) - Funding: UK SPF(strategic programme fund), MOE (2009~2011 ) 8

10. Min-Seok Seo Carbon management team Korea Environmental Industry & Technology Institute Tel: +82-2-3800-673 E-mail: advanceseo@keiti.re.kradvanceseo@keiti.re.kr Homepage: www.edp.or.kr/carbon/englishwww.edp.or.kr/carbon/english