GHGs Emission Program in Household Carbon Bank in Gwangju

Comments from the Technical Committee 

Can a government-initiated program to spark voluntary carbon-saving steps by citizens actually generate significant returns? Gwangju’s Carbon Bank system indicates a strong “yes”. Initiated five years ago, it has expanded participation by some 330,000 households, representing 1.5 million Gwangju citizens or 62 percent of the city’s population. While the city paid for educational and operating costs, a Green Star Network was responsible for implementing the education and promotion activities. Greenhouse gas (GHGs) emissions have decreased each year, most recently by 135,000 tons.

Background Information

In order to improve the awareness of citizens and guide them to take an active part in GHGs emission reduction activities, on April 10, 2008, Gwangju city signed the Agreement on Model City of Climate Change with the Ministry of Environment, with the view of reducing the GHGs emission to 661 tons, 10 percent of that in 2005 (6,615 tons) as of 2015. It also introduced in the Carbon Bank System, where carbon dioxide reduced by families through saving energies (power, gas, and water-supply line) is converted to points and paid-out to the involved families. With this system, families can also gain points and save the earth while reducing charges for water, electricity and gas. This low-carbon policy achieves three goals in one stroke. In the Carbon Bank System, the reduction of energy consumption in this year in comparison with that of last year is converted to points, and annually paid to holders of a Carbon Green Card by Kwangju Bank.

Goals of the Initiative

To create a model city for adapting to climate change, Gwangju strategically adopted the Carbon Bank System to reduce greenhouse gas emissions by 10 percent (661 tons) until 2015 compared to 6,615 tons in 2005.

The system calculates reduced amounts of carbon dioxide through voluntary energy-saving efforts by households (taking into account electricity, gas, and water) and turns them into points. Then it provides those points to participating households. This helps households save money on daily expenses. Kwangju Bank issues participating households with a Carbon Green Card through which households receive points on.

Through the system, the city can analyze and evaluate reduced amounts of GHGs emissions each year and expand the system through continual monitoring in the years ahead.

Outcomes and Assessments

The initiative, as an efficient way to reduce greenhouse gases emitted from households has been introduced to local governments around the world. Nationally, the system laid the foundation for introducing the Carbon Point system across South Korea.

Locally, the system prepared for Gwangju to become a “carbon neutral city” adapting to climate change, which is a general trend worldwide for environment-friendly local governments. It helped Gwangju citizens strengthen their capacity to deal with climate change. The “good governance” surrounding the system has also contributed to cementing cooperation among various groups in the city. Lastly, the circulation of points across the city has no doubt stimulated the local economy.

Strengths of the Initiative and Innovation

Cities play critical roles in adapting to climate change. But there have been few city programs to reduce GHGs emissions effectively. The initiative introduced by Gwangju has been an effective public policy inducing voluntary citizen participation to reduce GHGs emissions.

A GHGs emission reduction program in the non-industrial sector is critical as part of CDMs in a city. Premised upon systemic, credible data, the initiative by Gwangju can expand to an emission trading system in the non-industrial sector. Operated by collaborative governance, the initiative helps stimulate cooperation among local communities for their revitalization.

The involvement of a local bank can also lead to accomplishing green banking, stimulating the local economy, and reducing GHGs emissions.

The effective combination of voluntary citizen participation and local resources is the most critical factor for the success of the initiative. Once that condition is met, the initiative can be an important institution for city innovation.