Eco-mileage Program to cut Greenhouse Gas Emissions
Seoul Metropolitan Government

The Problem

1. The growing need for the voluntary participation of citizens to lower greenhouse gases
Reducing greenhouse gas emissions is currently a global challenge. Countries and cities worldwide are now responding to this challenge in many ways, such as promoting research on new renewable energy sources and delivering electric cars. However, such approaches take a significant amount of time and involve large budgets.
Research shows that in Seoul, households and buildings account for 64% of greenhouse gas emissions while transportation accounts for 27%. These two main emitters are responsible for more than 90% of Seoul’s emissions, with the level of emissions continuing to rise. Therefore, the quickest and most effective way to cut emissions is to encourage citizens to voluntarily save energy in their daily lives.

2. Obstacles to voluntary participation – inconvenience and limits of energy saving
Most Koreans are aware that they need to save energy because Korea lacks energy resources. The government has also been introducing policies to support people in their voluntary activities to cut emissions. However, the problem is that such efforts often involve huge inconveniences, and it is even more challenging to encourage citizens who have already received incentives to continue their energy conservation efforts. Although citizens who have saved energy receive incentives, they may reach a point when further energy can no longer be saved. This may lead the voluntary participation rate to fall. Also, the efforts to raise the public’s awareness of greenhouse gases have not led to tangible results.

3. Problem with the incentive system –money spent leading to no result
The incentive system provides households and institutions with incentives for energy conservation to reduce greenhouse gas emissions. However, the problem is that money has been spent on incentives without the projected fall in greenhouse gas emissions. In other words, people receive incentives for saving energy once and then use more energy afterwards. Thus, greenhouse gas emissions remain unaltered while money is spent by the government.

4. The problem in participating for people without internet access
To become a member of the Eco-mileage Program, one must register through the internet. However, it was pointed out that people without internet access can’t join the program.

Solution and Key Benefits

 What is the initiative about? (the solution)
1. Voluntary participation led to significant greenhouse gas reductions
Since the Eco-mileage Program was launched on September 15, 2009, 350,000 households, 839 schools, 1,197 apartment complexes, 2,372 public institutions, and 20,964 commercial buildings/sites have taken part in this project - cutting carbon dioxide emissions by 92,001 tons. Converted into carbon credits and energy cost savings, this is equivalent to around 15,861 million won in cost savings, and it has contributed to environmental improvement.
The Eco-mileage Program provided incentives to the 13,800 households that marked a higher than 10% reduction over the past six months compared to their average energy expenditure of the previous two years. The incentives were environmentally-friendly products expected to contribute to energy conservation efforts. The top 70 institutions (20 schools, 20 apartment complexes, and 30 commercial buildings), with the highest level of greenhouse gas reductions, received support worth 10 million Korean won for the creation of more green areas and the installation of high-efficiency facilities.

2. Creating long lasting results and raising environmental awareness through eco-friendly incentives
The Eco-mileage Program provides incentives based on the amount of energy saved by the citizens when they take their first step towards energy conservation efforts. But to make sure that citizens continue their energy saving efforts, the program plays the role of a citizen’s partner by providing incentives that can be reinvested in greenhouse gas reduction efforts. As a result, households and institutions have been finding it easier to continue their energy saving efforts, and benefit economically, thanks to the eco-friendly incentives. In addition, active participation from students and faculties has resulted in incentives for schools, which has provided the opportunity for students to learn about the importance of environmental activities. This program is expected to lead to significant greenhouse gas reductions, if implemented worldwide.

3. Savings and economic benefits to participants in the Eco-mileage Card Program
The Eco-mileage Program’s scope was expanded from its initial energy saving activities to include the purchase of eco-friendly products, the use of public transportation and other everyday activities. The ‘Eco-mileage Card Program’ was developed to meet the increasing budgetary requirements due to the expansion of the scope of the program and growing participation. The Seoul Metropolitan Government, card companies and financial institutions, and manufacturers and retailers are cooperating to provide points (or mileage) to citizens for their eco-friendly actions. Citizens are benefitting economically from this scheme while the Seoul Metropolitan Government is able to effectively operate this program within a lower budget.

4. Providing support through tailored interactive information sharing to address the inconveniences and overcome the limitations of energy saving
The two main pillars of the Eco-Mileage Program are incentives and interactive information sharing. Conservation tips, expert advice and other types of information provided by citizens are shared through the Eco-mileage homepage. Efforts were also made to provide customized information that responded to the needs of citizens, such as ‘energy clinics service’ that diagnose energy consumption patterns by visiting specific households.

5. Community center employees and student volunteers support people without internet access
People without computers or who are not familiar with using the internet can register for the membership through their local community center. The community centers utilize center employees and student volunteers to help such people register so that everyone can join the Eco-mileage Program.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
1. Reflect of ideas from citizens, civil groups, academia, industry, research centers and the Seoul Metropolitan Government
Many civil groups requested that the Seoul Metropolitan Government set up a system to support citizens’ energy conservation efforts, and in response, Mayor Oh Se-hoon (the CEO) developed the Eco-mileage Program Action Guidelines in April 2008. In January 2009, the greenhouse gas reducing program went into pilot operation under the leadership of the Assistant Mayor of Environmental Protection Headquarters. During the pilot operational period, 12 advisory committee meetings were held to gather the opinion from academia, research centers, civil groups, and energy related institutions. In addition, eight rounds of workshops were held to collect the opinions of working level managers at the district offices and to improve the program.

2. Participation of 25 district offices under the leadership of the Environmental Protection Headquarters
The Environmental Protection Headquarters is in charge of the overall operation of the program, including development of the operational guidelines, while 25 district offices in Seoul are responsible for the citizen educational programs and public relations activities. The Seoul Metropolitan Government held regular workshops to collect feedback from the district offices and use it to improve the Program.

3. Governance system composed of civil groups, industry, the Office of Education, and the Seoul Metropolitan Government
Civil groups, businesses, the Seoul Metropolitan Office of Education, and the Seoul Metropolitan Government established a governance system that included regular discussions and seminars to increase citizen participation and address the necessary issues.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
1. Seoul Metropolitan Government established the ‘Eco-mileage Program’
The Climate Change Division in the Environmental Protection Headquarters of the Seoul Metropolitan Government tried to identify strategies to encourage long-term energy conservation efforts through strengthened relations with citizens, civic groups, academia, research centers, and related governmental bodies. The division reached the conclusion that there were limits to what citizens could do on their own and that in order to continuously conserve energy the Seoul Metropolitan Government had to act as a partner and support citizens in their energy saving efforts. In order to encourage long-term energy saving and greenhouse gas reduction activities by the public, the Seoul Metropolitan Government approached the problem from two directions – it provided incentives and established an interactive information sharing system.

2. Energy consumption data provided by energy suppliers
As part of the energy saving efforts, energy suppliers (the Korea Power Electric Corp. or KEPCO, City gas companies, Office of Waterworks) have provided two-year energy consumption data for individual households and companies. This data is automatically sent through a secured network to the Eco-mileage System where registered users can check their monthly energy consumption.

3. Sponsorship by companies
The Seoul Metropolitan Government signed MOUs with 20 large and medium-sized companies, including Samsung Electronics, Hyundai Motors, and LG Chemical, which manufacture high-efficiency appliances or environmentally-friendly products, with the aim of providing environmentally-friendly incentives instead of cash incentives. These companies offered their products to households that had demonstrated outstanding energy conservation.

4. MOUs with BC Card and six commercial banks
For the implementation of the Eco-mileage Card Program, a program giving points (or mileage) for activities such as conserving energy, buying eco-friendly products, or using public transportation, Seoul joined hands with six financial institutions, including BC Card, Woori Bank, SC First Bank, and Nonghyup, and the manufacturers and retailers of eco-friendly products, to develop a citizen participation model for a low carbon mileage system.

5. MOUs between the Seoul Metropolitan Government, a telecommunications company and commercial banks
Also, KT, a telecommunications service provider, gives incentives to Eco-mileage Program participants when they visit the program’s homepage to post energy conservation information, report cases of energy waste or engage in any kind of eco-friendly activity on the web to encourage more citizens to visit and take part in the web based activities.

6. Cooperation with the Office of Education
The Seoul Metropolitan Government signed an MOU with the Seoul Metropolitan Office of Education to encourage all schools to launch energy conservation programs. Of the 1,317 primary, middle and high schools in Seoul, 819 schools have now joined the program and are carrying out on-site educational programs on energy conservation.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
(2008)
In line with the growing demand of citizens, the Eco-mileage Program was developed in April 2008 as a “program for the direct participation of citizens in energy conservation activities to cut greenhouse gases.” A dedicated task force was organized within the Environmental Protection Headquarters and a system and program providing energy consumption data was developed after a series of meetings with the Korea Electric Power Corporation, five gas companies, including Seoul City Gas, and the Office of Waterworks. In October 2008, an MOU was signed with these energy suppliers to set the basic framework for the execution of the program. Further, a security check by the National Intelligence Service was completed in December 2008 to ensure that the program could offer the necessary protection of the personal data it would collect. (2009)
The Eco-mileage Program, which provides cash incentives for reducing greenhouse gas emissions, was put on a test run by 25 district offices in February 2009. During the pilot period, 12 advisory committee meetings and eight district office staff meetings were held to collect feedback. The program was modified to provide eco-friendly incentives to those who had cut their emissions and it was officially launched in September 2009. In October 2009, the website was improved to provide an interactive communications service by which citizens can post their recommendations and receive helpful conservation tips and customized solutions to various problems.

(2010)
In January 2010, the Seoul Metropolitan Government signed an MOU with BC Card (six million subscribers) to launch the Eco-mileage Card Program, which extended the current mileage program to recognize not only energy conservation activities but also green consumption and the use of green transportation. The new cards were issued in December 2010. In March 2010, an MOU was signed with 21 manufacturers of high-efficiency and eco-friendly products, including Samsung Electronics, who agreed to donate their products as eco-mileage incentives. Also, in October 2010, an MOU was signed with KT to start an online mileage program. As of November 2010, 360,000 households, organizations and institutions are participating in the program.

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
First, difficulty in developing an automatic system to verify individual carbon emissions
Energy suppliers were at first reluctant to share energy consumption data because it was considered to be private customer information. Thus, a new system and program needed to be developed to ensure information security. In response to this challenge, a series of working level meetings were held with KEPCO and five city gas companies to devise measures to protect customer information. The system was finally completed after the security of the program had been verified by the National Intelligence Service.

Second, conflicts arising due to districts’ reluctance to participate in the Eco-mileage Program
Twenty five districts initially refused to implement the program due to a lack of financial resources to pay for the cash incentives. They also demanded improvements in the operational methods and asked for the right to manage their individual websites. To overcome these challenges, incentives were not given to all participants but only to those who could demonstrate a 10% or greater reduction in energy consumption. Also, separate websites were developed to provide administrator status to the district offices. Financial resources to support the incentives were mobilized by attracting the participation of 20 companies. In the long term, the Seoul Metropolitan Government hopes that the implementation of the Eco-mileage Card Program will help the city to free itself of the current monetary burden by making the program self-sustainable through promotion.

Third, low awareness about climate change and low voluntary participation
Voluntary participation in the program was low due to a lack of awareness about climate change. To solve this problem, a cooperative body consisting of representatives from the district offices, schools, civil groups and companies was organized, during the preparatory stages, to raise public awareness about climate change. The Seoul Metropolitan Government toured the 25 district offices and held 394 training sessions in which 24,257 people participated, including community leaders, professional organizations, building managers, environmental teachers, managers, and representatives from women’s groups.

Fourth, difficulty in reducing greenhouse gases
It is important that large buildings, by far the biggest consumers of energy, join the program to produce a tangible reduction in greenhouse gases. To tackle this problem, energy conservation and program awareness training sessions were held for the owners and managers of large buildings and universities. The mayor also awarded 40 households and 70 institutions with plaques and certificates in a ceremony that was publicized by the media.

Fifth, the participation of people without internet access
The elderly, low income groups and those without internet access are able to register for the program at their nearest community center with the help of the district office staff.

Sixth, difficulty in mobilizing the budget for incentives
It was difficult to mobilize the financial resources necessary to pay for the incentives as more people joined the program. To address this issue, Seoul took advantage of the eco-friendly marketing efforts of certain companies by providing products donated by these companies as incentives. Money was saved through the Eco-mileage Card Program, a collaborative effort between the Seoul Metropolitan Government, card and financial companies, and manufacturers/retailers to provide mileage to the participants.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The planning for the Eco-mileage Program was concluded in April 2008.
A dedicated task force was organized within the Environmental Protection Headquarters to build the system and program for the Eco-mileage Program. After a pilot run and a series of advisory committee meetings and feedback sessions with district offices, the program was officially launched in September 2009.

Financial resources
With the support of company sponsorship, a budget of 1.2 billion won was used for incentives and 2.5 billion won was spent on building the homepage and system, covering the costs related to paying the incentives, and subsidizing projects implemented by district offices. The implementation of the Eco-mileage Card Program has contributed to the sustainable operation of the Program. Thus, government support is not required as it receives financial aid through company donations.

Human resources
The Seoul Metropolitan Government allocated three of its staff members to a dedicated task force, while district offices allocated one person to take care of the administrative work related to planning and operating the consultation group. BC card also allocated dedicated staff for the implementation of the Eco-mileage Card Program.

Technical resources
A system and program to automatically check energy consumption levels while ensuring credibility and protecting personal information was developed.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The Eco-mileage Program is an exemplary low carbon incentive program that provides mileage for eco-friendly activities, such as conserving energy and buying eco-friendly products, based on collaboration between the government, card and financial companies, and manufacturers and retailers. The card and financial companies donate 50% of their related profits to the Seoul Metropolitan Government, which is then used to finance the city’s energy conservation mileage. Also, this program has created a virtuous cycle that has increased the benefits enjoyed by citizens and the profits of the participating companies.

Any initiative aimed at increasing citizen participation in reducing greenhouse gas emissions requires the cooperation of not only governmental agencies but civil groups, too. The Seoul Metropolitan Government, district offices, civil groups, schools, and businesses have together built a governance system that promotes citizen participation. Also, the legal groundwork, including the incentive guidelines, was set in the Seoul Green Growth Basic Ordinance to ask for the support of citizens.

As the first greenhouse gas emissions reduction program to have been implemented by a local government and which involves direct citizen participation, the Eco-mileage Program has been benchmarked by other regional governments. The Ministry of Environment began to develop its own system, based on Seoul’s system, to be applied to other regional governments across the country. The Eco-mileage Program was selected as a government-industry collaborative model that induces direct citizen participation, and it is now being applied nationwide.

The Ministry of Environment opened a workshop aimed at expanding the Eco-mileage Card Program, which will be launched in December 2010, to other regional governments. The program will be implemented after the governmental system has been refined in the first half of next year.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
The key success factors of the Eco-mileage Program can be summarized in three points. First is the strong and consistent commitment from the highest level of policy maker in the city government – the mayor. To reach Seoul’s emissions target (40% reduction from the 1990 levels by 2030), it will take more than just measures executed by the city government, such as promotion of new renewable energy sources and improvement of energy efficiency in buildings, but an overall transformation in the daily lives of citizens, including purchases of environmentally-friendly goods and the use of green transportation. The Seoul Mayor regularly checks the progress of the program and listens to the feedback from various departments and ‘citizen customers’ through presentations and public debate sessions. The Assistant Mayor of the Environmental Protection Headquarters is leading the task force that monitors the problems and presents solutions in the course of implementing the program.

Second, the program was able to succeed thanks to the strong support of the 25 district offices. The district offices established a special task force that promoted citizen participation through PR activities aimed at apartment complex managers, the managers of large buildings, and women’s groups. Training programs were held to ensure that the citizens participating in the program were proud to be engaged in such environmental activities. The district offices also support those without internet access at their community centers.

Lastly, the active participation of schools contributed greatly to the success of the program. Newsletters with information about greenhouse gas reductions were regularly sent to students, who are the future leaders in the fight against climate change. Also, after school activities or special activity sessions were organized at schools to emphasize the importance of energy conservation and to raise student awareness about the program.

Contact Information

Institution Name:   Seoul Metropolitan Government
Institution Type:   Government Department  
Contact Person:   Hosung Kim
Title:   Manger  
Telephone/ Fax:   82-2-2115-7792
Institution's / Project's Website:   82-2-2115-7799
E-mail:   hosung@seoul.go.kr  
Address:   Deoksugung-gil 15(Seoul City Hall), Jung-gu
Postal Code:   100-110
City:   Seoul
State/Province:  
Country:  

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