Samsung Electronics has received approval from United Nations Framework Convention on Climate Change (UNFCCC) for UN Clean Development Mechanism (CDM) business based on sales of its highly energy efficient refrigerator range. The increased usage of the energy efficient refrigerator range reduces electricity consumption and earns the Company CER units as much as the amount of reduction.
The CDM business is based on tradable permit system authorised by the UN. Once a company or country voluntarily reduces greenhouse gas emissions and submits its projects, it is subject to third party scrutiny with the final approval being given by UN which also accords the CER credits.
Samsung India initiated its CDM project in India in September 2010 and received the Indian governments approval in July 2011. The Company then applied for the UN CDM approval and received clearance in September 2012. This is the first time that a Home Appliances project has earned CER credits from the UN.
According to Samsung's emission reduction projects, the difference in electricity consumption between the energy efficiency levels of the total market and Samsungs two-door refrigerators sold in India since 2010, will be deemed as a criterion to determine CER units.