Korea Eco-Label Program and Green Supply Chain Related Activities
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1 2015/SOM2/CTI/DIA1/007 Korea Eco-Label Program and Green Supply Chain Related Activities Submitted by: Japan Dialogue on APEC Cooperation Network on Green Supply Chain Boracay, Philippines 11 May 2015
2 Korea Eco-Label Program and Green Supply Chain related Activities May 11, 2015 Contents 1
3 Operating Agencies Environmental Technology & Economy & Industry Division Division 1) Overall management including the enactment and revision of related laws 2) Public announcement of certification criteria 3) Other technical and administrative support Environmental Certification Department Eco-label Certification Office Environmental Analysis Center Sustainable Lifestyle Department Sustainability Strategy Office Sustainable Lifestyle Office 1) Development/revision of certification criteria 2) Certification & follow-up surveillance 3) Promotion and provision of information Definition of the Type-1 Ecolabelling Program (ISO 14024) Voluntary, multiple-criteria-based program by the third party Authorization of the use of environmental labels on products indicating overall environmental preferability of a product within a particular product category based on life cycle considerations Purpose To provide consumers reliable information on environment-friendly products To facilitate companies to develop and produce environment-friendly products Ecolabel All Over the World Global Ecolabelling Network (GEN) : Voluntary participations of 27 ecolabelling institutions in 47 countries 2
4 History of the Korea Ecolabelling Program History of Korea Eco Label Program Korea ecolabelling program Launched The act on Development and Support of Environmental Technology Recommend the Green Public Procurement (GPP) The Member of GEN (Global Ecolabelling Network) The act on Encouragement of the Purchase of Green Product Oblige State Agencies to submit Annual Plan and Performance Records on GPP to MOE Acquisition Of GENICES certification 153 categories, 13,313 certified products (as of Feb.2015) Logo & Legal Base Introduction of the Logo Implication of Design : The shape symbolizes the clear and clean environment The Act on the Development and Support of Environmental Technology Article 17 (Authentication of Environmental Mark) 1 The Minister of Environment may grant authentication of environmental mark for the products which may cause less environmental pollution or save resources compared with other products intended for the same use (including apparatus, materials, and services affecting the environment; hereinafter the same shall apply) 3
5 Incentives for Korea Eco Label Certified Products 1. KEITI promotes certified products and supports distribution to big box retailers, department stores, and etc. 2. Certified products become targets of obligatory purchase by public institutions Office of Supply grants credit upon qualification for bid of purchase of goods 3. KEITI supports registration to the Office of Supply as good products (comprehensive technological report) Ecolabeled product category Ecolabeled products at big box retailers E-shopping mall of the office of supply Giving prizes to companies which have made and distributed eco products Annual Status of Korea Eco-label Category Trends of development of Korea Eco Labelling Program 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Annual Certification Status 13,353 Number of certified products 인증제품 Number of certified companies 인증업체 10,436 9,140 7,904 7,777 6,531 6,005 4,639 5,105 2, ,175 1,369 1,455 1,632 1,636 1,841 2,025 2, Exceeded 10,000 certified products(in 2013) Number of certified products 326(in 2001) 13,353(in 2014) 4
6 Product Category(149) Service Category (4) Mixed-Use Products & Others :25 Office Equipment, Furniture & Supplies : 20 Hotel Services Industrial Goods & Machinery :15 Vehicles, Leisure & Culture : 12 House Building Materials & Machinery : 43 Automobile Insurance Car sharing Service Home Appliances & Furniture : 13 Housewares & Personal Care Products : 21 Condominium Services Certified Products by Categories Number of the certified products Total number of certified products : 13,313 including Service certification (2) Vehicles, Leisure & Culture : 30 Home Appliances & Furniture : 372 Industrial Goods & Machinery : 407 Mixed-Use Products & Others : 2,806 Office Equipment, Furniture & Supplies : 2,803 Housewares & Personal Care Products : 749 House Building Materials & Machinery : 6,144 5
7 Consumer Awareness of the Korea Ecolabel Consumer awareness of Korea Eco-Label (Research period & object : Oct11~Nov3 2013/ for 1,000 people in all over Korea ) Detailed Operating System of the Korea Eco Label <Eco Label Certification Office> Certification <Test & Inspection Authorities> Test and analysis on Environmental feasibility of products Criteria Development feedback Follow-up Management International Cooperation <Environmental Standard Management Office> KEITI Environmental Analysis Center Domestic and overseas test & inspection institutions conforming to ISO/IEC Test and inspection agency designated or authorized by a central administrative institution accordance with relevant laws 6
8 Act to Promote the Purchase of Eco-friendly Products (2005) Since 2005, public institutions have purchased eco-products The heads of public institutions shall purchase green products, when they intend to purchase any product Article 6 The heads of public institutions shall aggregate purchase records of green products pursuant and submit such purchase records to the Minister of Environment Article 9 Target Organizations : 879 government and public institutions (Total 30,000 institutions including affiliated organizations) Scope of Eco-Products : Eco-Label Products, Good Recycled mark products, Other eco-products satisfying criteria established by the MOE Act to Promote the Purchase of Eco-friendly Products (2005) Certified or Meet the criteria set either by the Korea Eco-Label or the Good Recycled Mark Meet other environmental standards set by MOE in consultation with the relevant ministries Korea Eco-Label Good Recycled Mark 153 target Products (Office equipment, Building materials, living necessities etc.) 13,313 Products by 2,419 companies (As of February 2015) Ministry of Environment / KEITI Product groups Number of Products Certification Authority Website 7
9 Communication strategies of GPP : GPP system Report the monitoring and evaluation results Provide direction and supervision Provide green products information Provide centralized GPP records via KONEPS Provide technical Assistance Submit Implementation Plan and Records via GPIS Execute GPP Over certain thresholds PPS(Public Procurement Service) Commission Procurement over certain thresholds Communication strategies of GPP : Cooperate with PPS(Public procurement Service) Online Shopping Mall operated by PPS 8
10 Communication strategies of GPP : Eco-friendly Bidding PPS green products bidding notice (ex : construction material) Eco-labeled construction materials Monitoring of GPP trends Korea s GPP recorded around 2 billion USD in 2013 which has increased 7 times since Total expenditure in green products (billion USD) % of GPP over the total domestic purchase executed by PPS 9
11 Key Success Factors & Future plan Success Factors Limitations Enacting the law to encourage purchase of green products Monitoring system in connection with PPS E-procurement system Evaluation of green performance Financial & reputational incentives Staff in charge of GPP in public agencies frequently changes Ineffective management of indirect procurement (e.g. construction) Shortage of green products criteria (especially, constructer materials) Stimulate public demands by diversifying product groups Strength training section of staff in charge of GPP Voluntary agreement on Business Green Procurement Introduce voluntary agreement on green procurement and guidelines for business green procurement (151 companies since 2005) Voluntary Agreement Procurement Records Workshop for Voluntary Agreement 10
12 Green Store Certification Program Certification scheme to indicate green stores that facilitate the distribution of green products to consumers and improve the environmental management of the stores (since 2011) 200 shopping malls and stores have been designated(march 2014) According to the Environment Improvement Expense Liability Act, tax breaks (20-50%) are offered on environment improvement charges paid by green retail stores Signboard Ecolabeled products at Green Stores Environment-friendly Construction Material Operate on-line information system for Environment-friendly Construction Material Material Info. E-catalogue Standard Info. Support for user - Electronic file download (MS Excel) - Casebook of Environment-friendly construction material procurement 11
13 Eco-Interior project : overview Demonstration project for small enterprises and eco-label certified companies (Since 2014) Objectives : Promote sales of eco-label certified products via small retailers in local neighborhood Activate supply of environment-friendly construction material through direct transaction Logo and target products LED Lamps Windows and Doors Finishing Materials Paints Products for Indoor Air Quality Finishing Materials Eco-Interior project : Supporting areas Education : eco-label program, harmful substances in living environment, etc. Marketing : bulletin board of local community service center, leaflet distribution, SNS channel, etc Improvement of business facility : renewal of signboard and display stand Before After <Signboard renewal> <Internal display stand> 12
14 Eco-Interior project : Supporting areas Direct transaction channel between small businesses and manufacturers for cost-saving Small businesses registration foam Manufacturers registration foam < information sheet for small businesses and manufacturers> Eco-Interior project : Sales increase of small businesses in 2014 Average sales growth rate of 20 small businesses Over 21% (2) Under 0% (2) Over 21% (8) Under 0% (4) 11~20% (3) 0~10% 0~10% (13) 11~20% (3) (4) Average overall sales growth rate : 10.5% Average sales growth rate of eco-labeled product : 30.5% 13
15 Thank you very much! Environmental Analysis Center Jeon, Seung-hwan, 14
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