Electronics Industry Embracing Green Growth, Reduce Greenhouse Gas Emissions

Measures Ahead of the 3rd Emissions Trading Phase

Samsung Electronics Gumi Plant exterior view.

[Asia Economy Reporter Dongwoo Lee] The electronics industry is actively working to reduce greenhouse gas emissions for low-carbon green growth.

According to the industry on the 16th, Samsung Electronics emitted 16.07 million tons of greenhouse gases domestically on a consolidated basis last year. This figure represents only a 0.06% increase compared to the previous year (15.97 million tons). Compared to the 17.9% increase in greenhouse gas emissions in 2018, the growth rate has significantly decreased.

Accordingly, the greenhouse gas emission liabilities, which reached 99.6 billion KRW at the beginning of last year, decreased to 18.4 billion KRW by the end of the year. However, Samsung Electronics is expected to secure additional emission allowances for the 2.3 million tons exceeding the free allocation of 14.06 million tons received from the government. Emission liabilities are amounts set aside as provisions when a company exceeds the emission allowances allocated by the government. The lower the emissions, the smaller the provision amount.

Samsung Electronics has been strengthening its self-help measures annually to reduce carbon emissions. Since 2018, it has installed solar and geothermal power generation facilities totaling 60,000㎡ at its Hwaseong, Suwon, and Pyeongtaek sites to save energy. Through these efforts, Samsung Electronics has reduced a cumulative total of 200 million tons of greenhouse gases over the past decade and aims to reduce a cumulative 250 million tons by this year.

LG Electronics recorded 1.19 million tons of greenhouse gas emissions last year, a decrease of 11.1% compared to the previous year (1.34 million tons). This marks two consecutive years of reduction following 2018. The company received a free allocation of 1.92 million tons of emission allowances from the government last year and did not purchase additional emission rights.

Since 2009, LG Electronics has been implementing a low-carbon green management strategy, including setting voluntary targets for greenhouse gas reduction?the first in the domestic industry. As a result, it was selected among the top 5 companies with excellent carbon reduction performance in Korea during 2014-2015.

Last year, the Science Park, an R&D center located in Gangseo-gu, Seoul, was certified as an 'Energy Excellent Workplace' by the Korea Energy Agency. The company also completed international energy management system certifications at seven domestic sites and four research institutes and produces products using eight green technologies it owns, including home appliances, TVs, and monitors.

The reason the electronics industry is continuously strengthening greenhouse gas reduction efforts is that the government is likely to significantly reduce the scale of free emission allowances allocated to companies ahead of the application of the 3rd Emissions Trading Scheme (2021?2025) starting next year. If companies fail to reduce greenhouse gas emissions, they may incur hundreds of billions of KRW in additional costs annually for purchasing emission rights.