3.1 Raising Awareness and Participation of Manufacturers and Consumers: Energy Winner Award Programme of the Citizens’ Alliance for Consumer Protection of Korea
by Ms. Jai-Ok Kim, President (Domestic Affairs), Citizens’ Alliance for Consumer Protection of Korea, Seoul, Republic of Korea
In many parts of the world, limitations on the availability of energy services create barriers to socio-economic development. Worldwide, approximately two billion people use traditional solid fuels for cooking and heating, and almost as many lack electricity. Without access to modern forms of energy for lighting, cooking, heating and cooling, refrigeration, pumping, transport, communications and productive purposes, people must spend much of their time and physical energy on basic subsistence activities. Lack of energy services is correlated with many elements of poverty, such as low education levels, inadequate health care, and limited employment possibility. At the United Nations Millennium Summit, which was convened in New York in September 2000 with nearly 150 Heads of State or Government attending, governments committed themselves to halving the number of people living in poverty by 2015 requires all stakeholders to work towards reducing by half the number of people who lack access to modern energy services.
In 1999, the total world commercial primary energy consumption amounted to more than 8.5 trillion metric tons of oil equivalent
(mtoe). Petroleum (crude oil and natural gas products) continued to be the world's dominant primary energy source, accounting for almost 40.6 per cent of the total. Coal ranked second as a primary energy source, accounting for 25 per cent of world primary energy consumption. Dry natural gas ranked third as a primary energy source, accounting for about 24 per cent. Electric power generation from nuclear and from hydro and other renewable sources (including solar, wind, biomass, and geothermal) accounted for 7.6 per cent and 2.8 per cent, respectively
Total world commercial primary energy consumption during the 25-year period from 1975 to 1999 registered an average annual growth rate of about 1.6 per cent. During this period, nuclear power exhibited the highest annual growth rate, about 8.4 per cent, followed by natural gas, about 2.6 per cent; hydro, about 2.5 per cent; crude oil, about 0.96 per cent; and coal, about 0.89 per cent.
The fact that improving energy conversion and end-use efficiency can lead to reduction of the energy consumption per unit product or activity provides a compelling basis for policy initiatives and actions. Making the energy system more efficient contributes to improving local air quality and health, as well as to reducing regional acidification, and offers considerable potential for greenhouse gas reduction. Energy efficiency improvements also reduce the investment requirements of the energy sector for any given level of gross domestic product (GDP).
Energy efficiency can be a win-win solution both for developed and developing countries. Currently, however, energy efficiency has not reached its potential and current functioning of markets does not lead economic actors to choose energy efficient products and services -- institutional barriers discourage energy institutions from promoting energy efficiency. Barriers to optimizing the energy efficiency potential involve market-related and institutional issues as well as lack of access to technology, capacity-building and financial resources.
Energy efficiency is one of the main technological drivers for sustainable development. However, the benefits of end-use efficiency for society, environment and economic growth are often underestimated. Barriers to utilizing significant energy efficiency potential are related to both institutional and market mechanisms. While some of the market-related challenges are a weak enabling environment for private sector investments and a lack of information on energy use and options. Institutional challenges include lack of explicit national policies for end-user energy efficiency.
Governments are encouraged to strengthen public awareness programmes to mobilize all stakeholders to:
- develop, as appropriate, at the country and regional level, energy
efficiency programmes and policy options;
- strengthen capacity-building, including education and training to
improve the performance of energy and materials use; and
- increase the efficiency of technologies used in the production and
consumption of energy.
3.1.2 Situation in the Republic of Korea
With the rapid economic growth of the past 20 years, energy consumption in the Republic of Korea has increased more than four-fold, from 43.9 million tonnes of oil equivalent (TOE) in 1980 to 181.2 million TOE in 1999. This makes the country the tenth largest energy-consuming country in the world.
But, poor in indigenous energy resources, Republic of Korea has to rely almost entirely on imports to meet its energy needs. In 1999, 97.2 per cent of energy needs are imported. Government policymakers are focused on ways of reducing consumer energy use. In the electricity sector, household electricity accounts for nearly one-fifth (18.8 per cent) of total electricity use. Oil consumption by the Republic of Korea has grown every year except during the period of economic crises in 1997 to 1999.
Despite nationwide efforts driven by the Government to encourage energy conservation and higher energy efficiency, the high rate of increase in energy demand is expected to persist in the future because further economic growth is also expected. This situation has led consumer organizations to launch the Sustainable Energy Campaign in Korea. Moreover, the financial crisis and the decision at the Kyoto Conference on Climate Change to decrease carbon dioxide levels has made energy conservation an urgent task in Republic of Korea.
Table 3.1.1 Major economic energy indicators in the Republic of Korea
Table 3.1.2 Electricity consumption by sector in the Republic of Korea
3.1.3 Implementation of the Energy Winner Award
The Sustainable Energy Campaign of Citizen’s Alliance for Consumer Protection of Korea
(CACPK) began in 1994. CACPK initiated research on “Consumer attitudes and practice of energy conservation” in 1994, which revealed that young consumers are unaware of energy conservation. In 1995, CACPK organized nationwide education programmes with considerable outreach to 3,900 young consumers.
In 1996, CACPK initiated the Republic of Korea’s first signing of an agreement with four major household electrical appliance manufacturers to increase the energy efficiency of their products. That year CACPK carried out a consumers’ campaign to “promote energy efficiency product consumption and production” by testing and publicizing the energy efficiency of washing machines, refrigerators, rice cookers, irons, and other appliances.
CACPK has urged the Government to expand its energy efficient grade program. It has also sought ways to practice “Factor 4”
by forming the “Korea Factor 4 Committee”.
In 1997, CACPK organized an effective nationwide campaign initiative through the National Energy Efficiency Award programme (locally known in Republic of Korea under the name “Energy Winner”) as a culmination of these activities. The “Energy Winner Award” is an annual prize to encourage manufacturers to continually produce better energy-efficient products and develop new technology to conserve energy.
The purpose of the Energy Winner Award programme is to:
- alleviate a nationwide energy inefficiency crisis;
- ease the economic and environmental burdens caused by energy waste;
- increase the production and consumption of energy-efficient products;
- increase the distribution of energy-conserving products and systems; and
- promote an energy efficiency movement in the market, thereby ensuring
the promise of sustainable energy.
Under the sponsorship of Ministry of Commerce, Industry and Energy
(MOCIE), Ministry of Environment, and Korea Energy Management Corporation
(KEMCO), CACPK carries out the Energy Winner Award campaign with the cooperation of a major daily newspaper
(Hankuk-Ilbo). ESCAP has also supported the Energy Winner Award programme for the past four years. The Energy Winner Award is now considered an exemplary model among consumer organizations in the Asia and Pacific region.
184.108.40.206 Purpose of energy winner awards
The Energy Winner Award is granted to producers who conserve energy by minimizing its use and maximizing its efficiency. Awardees are allowed to use the award logo on their products or in their advertisements. This attracts consumers and creates energy efficiency awareness in the market.
Each year, private and public sector entities are invited to submit products and projects for an independent, professional assessment and competitive review by the CACPK Energy Advisory Committee. Selected products and distinguished projects are awarded non-monetary rewards, including permission to mark their products with designated energy-efficiency labels that can attract consumers while also creating awareness of energy efficiency in the market place.
Each year, CACPK culminates its Annual Energy Award winner programme with a highly publicized official awards ceremony. Each year the campaign attracts more attention and recognition from the private sector.
220.127.116.11 CACPK Energy Advisory Committee
The CACPK Energy Winner Award campaign is guided by an independent Energy Advisory Committee which comprises 25 distinguished experts and energy professionals.
This honorary Advisory Committee evaluates applications for the Award and provides guidance to the energy efficiency campaign as a whole. There is also a strong participation of media representatives in the Committee.
18.104.22.168 Categories of the energy winner award
There are three categories for the Energy Winner Award: “Grand Prize of the Year”; “Energy Award of the Year”; and “Carbon Dioxide Reduction Award”. The “Energy Award of the Year” has three subcategories: “Energy Efficiency Award”; “Energy Innovation Award”; and “Energy Conservation Award”. The “Carbon Dioxide Reduction Award” was launched in 2001.
Candidate products are considered in five different product and activity categories. These are the following:
- Green Appliances Division;
- Green Lighting Division;
- Energy Efficient Cars Division;
- Sustainable (Green) Buildings Division; and
- General Energy Efficiency Activities Division (organized in 2000).
Table 3.1.3 Energy Winner Award product categories
22.214.171.124 Major evaluation indices
The major evaluation indices for winning an Energy Winner Award are:
- comparative energy efficiency (rating weight: 30 per cent);
- comparative environmental impacts (rating weight: 30 per cent);
- new technology applications (rating weight: 20 per cent); and
- other aspects (rating weight: 20 per cent )
126.96.36.199 Review process
The review process consists of two rounds. The first round involves documentation reviews, product presentation by the applicants, and site evaluation by the committees responsible for each division. Each division recommends candidates for the Energy Winner Award.
The second round involves a comprehensive evaluation. In this round, committee members select the final winners based on marks they received in the first round.
In the experience of the organizers the selection of winners has always been difficult because given the generally high overall quality of the applications.
188.8.131.52 Process for the Energy Winner Award 2002
To prepare for the Grand Prize of the Year and Energy Winner Award 2002, CACPK convened a screening committee in May and June 2001, to adjust award classification, award winner, and award division. The committee also discussed the evaluation basis.
The public announcement and acceptance of applications for the grand prize of the year and the other Energy Winner Awards for 2002 started in June 2001. Applications were accepted until August 2001. CACPK encouraged enterprises and organizations to participate in the award programme by distributing application requirements and promotional posters to 1,200 different places including 500 enterprises, 200 schools, 160 apartments, and 150 public organizations as well as to the press.
A total of 39 enterprises and organizations applied. The numbers of products nominated for each division were as follows: 18 products in the Green Appliances Division; nine products in the Green Lighting Division, six buildings and products in the Green Building Division; one product in the Energy Efficient Cars Division; and five enterprises and organizations in the Energy Efficiency Activities Division.
Applications were evaluated from 13 September to 17 October. The first step was carried out by evaluation of documents coupled with field investigation.
CACPK evaluated the products for the Green Appliances Division based on prescribed application letters that all the participants submitted. Then CACPK had briefing sessions to investigate the energy efficiency of each product. For the Energy Efficiency Cars Division, CACPK executed an 8-day driving test to measure fuel expenses. For the Green Building Division, CACPK visited each building and confirmed its energy saving system. For the Energy Efficiency Activities Division, CACPK also had a briefing session with each participant about their activities and effects. Based on these evaluation processes, 25 products and activities were selected as winners of Energy Winner Awards.
On 17 October 2001, the entire screening committee selected the Grand Prize of the Year from the 25 winners of the Energy Winner Award 2002. The Grand Prize of the Year was selected through voting from a short list of candidates from each division. The list included Seoul Singa Elementary School, the amorphous transformer of Cheryong Industry, and Samsung Life Insurance Office Building of Sam-Woo Consultants. The Grand Prize of the Year went to Singa Elementary School. The Carbon Dioxide Reduction Award, newly added in 2002, was given to Hyundai Motor Company.
Table 3.1.4 Energy Winner Award recipients for 2002
Grand Prize of the Year The Improvement of Energy Saving Attitudes Activity Seoul Singa Elementary School
Energy Efficiency Award Amorphous Cast Resin Transformer Cheryong Industrial Company Limited
Energy Innovation Award Samsung Life Insurance Building Innovation Samoo Mechanical Consultants, Incorporated
Energy Conservation Award Energy Service Company (ESCO) Activities Doosan Heavy industries and Construction Company Limited
Carbon Dioxide Reduction Award "Santa Fe 2.0 Diesel (HTI)" Four-Wheel Drive Sport Utility Vehicle Hyundai Motor Company
184.108.40.206 Grand Prize: Seoul Singa Elementary School
Seoul Singa Elementary School received the Grand Prize for developing its own teaching aids and teaching methods to encourage energy saving, with about 1,800 students and their parents participating in these activities. Despite a small budget, the school installed “energy-saving simulation equipment” and with the help of this equipment it has been providing effective and enthusiastic energy-saving education.
Winning this award has enabled Singa Elementary School to promote the importance of energy-saving to about 6,000 schools and 130,000 students nationwide. It will also contribute to the education and awareness of future energy-consumers, a goal pursued by consumer organizations.
The energy saving educational activities of the school include:
Activity 1 - Prepare the educational situation for energy saving
- abstract elements from the units of curriculum, devising a yearly
- prepare the educational situation through school broadcasts every
- establish and open educational facility for energy saving
- reinforce teacher training activities on the second Tuesday of each
- support the audiovisual aides of TP,VCR, etc. and manufacturing
Activity 2 - Develop quest activities centered on instances of energy consumed
- publish and use workbooks about quest activity of energy consumption
- hold open discussions about energy saving at extra curriculum times
- develop various experience learning activities related to energy saving
Activity 3 - Practice energy saving through the guidance relating to community
- guide the community through the monthly newspaper published by Singa
- organize and manage leading service groups for energy saving activities
- manage the parents association regarding instruction and information on
- hold various events and open classes
Table 3.1.5 Results of educational activities at Singa Elementary School
Section Questions First (2000.3) Second (2001.7) Improvement
Students Students use water gotten beforehand in buckets 31.3% 61.5% 20.2%
Parents Parents turn off the top water tightly after using it 28.3% 61.7% 33.4%
Teachers Teachers give the energy saving education systematically 35.5% 79.1% 43.6%
220.127.116.11 Energy Innovation Award: Samsung Life Insurance Building
The increased energy efficiency of this building was achieved by innovations in the building components and the heating, ventilation and air-conditioning system (HVAC) system. The architects used extra insulation to dramatically reduce infiltration loads and solar heat gain.
Heating and cooling loads are diminished from the building components. This allows for a reduction in the size of the air-conditioning equipment and in operating costs. The other approach is an improved variable air volume
(VAV) system adapted to the air-conditioning requirements for each room. This avoids unnecessary energy consumption while improving energy efficiency with proper control strategies for the VAV system. These energy-saving innovations have reduced the building's energy consumption by 45 per cent.
3.1.4 Results of the energy winner campaign
The “Energy Winner” energy efficiency award programme has continually proven successful for many years. Companies develop and produce energy efficient technologies and products with the Energy Winner Awards in mind. The energy winner logos on products coupled with media coverage inform consumers about energy-efficient products. Thus, an NGO, the government, the media, and consumers together successfully spread the use of energy-efficient products. The award campaign has stimulated the national energy efficiency movement.
The energy award has emerged from initial voluntary agreements arranged by CACPK between the major household electronic appliance manufacturers
(LG Electronics, Samsung Electronics, Daewoo Electronics, and Hyundai Electronics) and the Government. From the viewpoint of the consumer movement, voluntary agreements to produce energy-efficient products and the award campaign show a cooperative effort between consumers and producers. This campaign suggests that the solution to the issue of energy is for corporations and consumers to work together to increase the manufacture and use of energy-efficient products. The corporations are obliged to try their best to produce energy efficient products while the Government supports such efforts with appropriate policies. Consumers ought to support energy-efficient products through adjustments to their consumption habits and lifestyles.
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Traditional energy conservation campaigns are often limited in focus attempting to address consumers only. However, giving the right incentives to manufacturers is also important. The efficiency of products can be stimulated by the creation of greater demand for energy efficient products. CACPK believes simultaneous efforts by the Government, corporations, and consumers alike are required and can have a considerable impact on reducing energy intensity of economic activity in the intermediate and long term.
CACPK, “Sustainable energy and Factor 4 movement in Korea”, 1999
CACPK, “5th Energy Winner of the Year and Energy Winner Awards”, 2001
Eugenie Bietry & John Donaldson, “Decentralized energy alternatives” Columbia School of Business, 2000
International Energy Agency, “World Energy Outlook 2000”, 2000
Republic of Korea, Ministry of Commerce, Industry and Energy, “Annual Report”, 2001
United Nations, “Energy and sustainable development: options and strategies for action on key issues”, United Nations Economic and Social Council, December 2000
United Nations Commission on Sustainable Development “Report on the ninth session”, United Nations Economic and Social Council, 2001
United Nations Development Programme, “Generating opportunities”, 2001
1 In 1997,
E.U. von Weizsacker and A. and H. Lovins in their report to the Club of Rome propagated the “Factor 4” paradigm, explaining the global sustainable development goals of economic growth and environmental protection can be reconciled, provided that resource and energy efficiency is dramatically increased. In their report, the authors illustrate with 50 selected examples that significant progress is achievable in many areas of consumption and economic activity.