ABOUT W GREEN PAY
W Green Pay ("WGP") is an ERC20-compliant token that operates on the Ethereum blockchain. The aim of W Green Pay is to increase the public’s participation in GHG (Greenhouse Gas) reduction. W Green Pay will provide the means of incentivizing the public for their GHG reduction efforts.
The HOOXI App will serve as the platform for users to be rewarded by completing GHG reduction tasks.
Following the Korean government’s pledge made at Copenhagen Accord in 2009, the country aims to reduce GHG emission by 37% by 2030.
The Korean government selected W-Foundation to lead the “Nation-wide Public Movement to Reduce GHG Emission (HOOXI Campaign)”.
To support the government’s GHG emission reduction efforts, W-Foundation will launch a mobile application called HOOXI App that monitors and rewards the effort of individuals and the public to reduce GHG emissions.
The most innovative social carbon credit platform to be launched.
W Green Pay (WGP), the blockchain from HOOXI, Korea's government-backed Greenhouse Gas (GHG) reduction campaign, is issued to reward general public's contribution to reducing GHG emissions under Korea's KETS (Korea's Emissions Trading Scheme) market.
WGP is a reward method to GHG reduction efforts on the anticipated HOOXI app. Users will be able to:
- Exchange mission points gained from the completed tasks to W Green Pay
- Spend W Green Pay at internet shopping malls (partners of W-Foundation)
- Use W Green Pay as a payback system on their credit cards
An international non-profit organization established in 2012 and a designated donation organization entitled by the Ministry of Strategy and Finance of Korea, is the philanthropic foundation behind the HOOXI campaign. Using the anticipated HOOXI mobile application, individuals can perform GHG reduction missions to collect mission points, which can be exchanged for WGP.
HOOXI App will track and aggregate individuals’ GHG reduction data, based on which W-Foundation will be allocated National Emission Permits (NEPs) - carbon emission units traded in the Korean market. Through HOOXI campaign, financial incentives of NEP-based carbon trading will no longer remain as the sole domain of corporations and institutions and will be open to individuals.
W Exchange, under the Korea Electric Power Corporation (KEPCO) approval, will be launched in March 2019. W Exchange is expected to be a KETS-eligible business entity. The allocated NEPs of HOOXI App are expected to trade at KRX using W Exchange.
HOOXI CAMPAIGN SPONSORS
NongHyup Financial Group, NongHyup Life Insurance Co., Ltd., NH Investment Securities Co., Ltd., KB Kookman Bank, YG Entertainment, Hotel Lotte DFS Co., Ltd., Lotte Homeshopping, Philip Morris Korea Ltd., Korea Management Association, Wumart Stores, Inc. (China), Hansol Chemical, Hansol Oak Valley, Borim CS, FnGuide Inc., Sungdo Engineering & Construction, Korea Business News Co., Ltd., YJM Games Co., Ltd., Cleantopia, NET TV Co., Ltd.
More than 300 Korean celebrities, including K-pop stars, support HOOXI Campaign as honorary ambassadors of W-Foundation.
Infinite, Lydia Ko, Ailee, Jang Hyuk, Kim Tae-Woo, IOI, Eddy Kim, Shim Hyung-Tak, Max Changmin, Choi Si-Won, Donghae, Kim Yu Jung and Alberto are several of the major ambassadors. There are many more Korean celebrities working with W-Foundation as honorary ambassadors.
KETS (KOREA’S EMISSIONS TRADING SCHEME)
In 2009, Korea made a pledge at the Copenhagen Accord to participate in the global movement to reduce GHG. By 2030, the Korean government aims to reduce GHG emissions by 37% from its business-as-usual scenario. In 2015, Korea launched its Emission Trading Scheme (KETS), which is the second largest in scale after the European Union Emission Trading Scheme at the point of writing.
Korea’s Cap-and-Trade system mitigates GHG emissions through market mechanisms. It applies to approximately 600 companies that account for over 68% of Korea’s GHG output (Korea Carbon, 2018). A cap that determines the maximum emission level that companies are permitted was set by the government. When a company exceeds the cap, the company has to purchase additional National Emissions Permits (NEP) from the market at market price or has to pay a penalty to the government.
The penalty for non-compliance with the KETS is three times the average market price per unit of tCO2e. The maximum penalty is capped at KRW 100,000 per tCO2e (approximately US $93/tCO2e equivalent).
NEP (NATIONAL EMISSIONS PERMIT)
The Ministry of Environment validates Korea’s NEP, and the NEP is exchanged at the prevailing market price. Despite the increasing demand for NEP in the market, the allocation of NEP by the Ministry of Environment is limited. The price of NEP per ton is high at approximately KRW 22,000 (US $20) as of April 14, 2018. This is higher than EU’s CER that is priced at approximately Euro 13.84 (approximately KRW 17,700) as of April 16, 2018.
NEP Market Size
Approximately 600 companies participate in carbon emission trading in Korea. The market size of NEP rapidly increased from a baseline of KRW 57.3 billion in 2015 when KETS started to KRW 194.6 billion in 2016 and KRW 438.5 billion in 2017 (validated data from January to October, 2017) (The Ministry of Strategy and Finance of Korea, 2017). The Korean government expects the NEP market to continue to grow in the coming years.