Distribution of High-Efficiency Cookstoves: The "Cookstove" Project
Companies Claimed 9.74 Million Tons of Greenhouse Gas Reduction
Actual Reduction Only 530,000 Tons... Effect Exaggerated by 18.3 Times
Profits Earned by Companies Through Inflated Results
A Kenyan resident looking at a low-carbon cookstove. Photo by Samsung Electronics
There have been claims that the environmental initiative "cookstove" projects conducted overseas by many South Korean companies, including Samsung Electronics, have been exaggerated by more than 18 times compared to their actual effectiveness. These companies have been recognized for overseas emission reductions through these projects and have even generated profits by trading greenhouse gas emission credits.
On April 22, the climate and environmental organization Plan 1.5, together with a research team from UC Berkeley and the European carbon market think tank Carbon Market Watch, released the results of a comprehensive investigation into 21 cookstove projects carried out by South Korean companies.
The cookstove project refers to activities that replace traditional cooking appliances with high-efficiency equipment in developing countries to reduce greenhouse gas emissions. Because these projects are recognized as overseas greenhouse gas reductions, South Korean companies such as Samsung Electronics and Korea East-West Power have actively participated.
According to the investigation, South Korean companies claimed to have reduced 9,740,302 tons of greenhouse gases through cookstove projects, but the actual reduction was only 531,979 tons. This means that the reported greenhouse gas reduction performance was inflated by 18.3 times compared to the actual effect. Projects conducted by Samsung Electronics and Ecoeye were inflated by 9.6 times, while those by Korea East-West Power and CRPD were exaggerated by 16.1 times. The Myanmar cookstove project by the Climate Change Center, which received investment from SK Group and others, was also overstated by 14.4 times.
The gap between reported and actual reduction amounts stems from methodological issues. For example, in developing countries, some households continue to use traditional cooking appliances even after the introduction of cookstoves. The more such households there are, the less effective the greenhouse gas reduction. According to the UC Berkeley research team, about 68% of households continued using traditional appliances, but companies reported this figure as only 4%. There were also issues with the usage rate indicators. Companies conducted surveys and recorded the usage rate as 100% if a cookstove was used even once. However, empirical studies showed that the average usage rate was only about 52%.
Companies gained economic benefits based on these inflated reduction results. When a company reduces greenhouse gases overseas, it can receive "offset credits" for up to 5% of its total emissions. Of these offset credits, 80% came from cookstove projects. The credits obtained can be used directly to comply with regulations or sold to other companies for profit. Most of the emission credits earned by carbon credit companies through cookstove projects were reportedly sold to large corporations.
Internationally, there have been ongoing concerns that cookstove projects are excessively overstated. Last year, the journal Nature published a study showing that international cookstove projects were overestimated by 9.2 times. The article also pointed out that the calculation methods set by international organizations are not accurate. The European Union (EU) has completely excluded cookstove projects from the implementation of "Nationally Determined Contributions (NDC)" for greenhouse gas reduction targets. This is because EU companies generated 3 billion euros (about 4.9 trillion won) in profits over 12 years by selling so-called "junk credits" for emission reductions that barely occurred.
Environmental groups have expressed concern that there is a high possibility of junk credits being used in Korea as well. According to the current Basic Plan for Carbon Neutrality, international reductions are expected to account for 13% (37.5 million tons) of Korea's total reduction obligation by 2030. The plan includes at least 13 cookstove projects. The proportion of offset credits, currently at 5%, is also expected to rise to 10% in the future. A representative from Plan 1.5 emphasized, "If the government purchases junk credits with taxpayers' money, the actual greenhouse gas reduction effect will be minimal," adding, "This could be criticized as a violation of the polluter pays principle."
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