Legal And Policy Options and Best Practices In Host Countries NOOR AKMAR SHAH GREENTECH MALAYSIA
Presentation Outline Involvement in Climate Change Process CDM Institutional Framework National CDM Criteria CDM Projects Statistic Involvement in Climate Change Process United Nations Framework Convention on Climate Change Signed on 9 June 1993 Ratified on 13 July 1994 Kyoto Protocol Signed on 12 March 1999 Ratified on 4 September 2002 Entered into force on 16 February 2005
The Framework NATIONAL CLIMATE CHANGE POLICY NATIONAL GREEN TECHNOLOGY AND CLIMATE CHANGE COUNCIL (MTHPI) NATIONAL GREEN TECHNOLOGY POLICY STEERING COMMITTEE WG ON INDUSTRY WG ON GREEN NEIGHBOURHOOD WG ON RESEARCH & INNOVATION WG ON TRANSPORTATION WG ON GREEN DEVELOPMENT WG ON ADAPTATION WG ON HUMAN CAPITAL WG ON PROMOTION & PUBLIC AWARENESS NATIONAL COMMITTEE ON CLEAN DEVELOPMENT MECHANISM (NCCDM) NATIONAL KEY ECONOMIC AREA WG = Working Group Related Policies and Plans National Energy Policy Five Fuel Policy National Roadmap to Reduce the Emission Intensity of GDP Green Technology Roadmap Green Township and Green Buildings Initiatives National Strategic Plan for Solid Waste Management, NSP National Biofuel Policy National Renewable Energy Policy 6
CDM Institutional Framework NATIONAL STEERING COMMITTEE ON CLIMATE CHANGE Set up in 1994 by Cabinet Chaired by Secretary General, NRE Members from Government, private sector and NGOs Secretariat: CEMD NATIONAL COMMITTEE ON CDM Chaired by Deputy Secretary General (I), NRE - DNA Members from Government sector and NGOs Secretariat: CEMD TC ENERGY (MEGTW) TC FORESTRY (NRE) RESPECTIVE SECRETARIAT ENERGY GREENTECH MALAYSIA FORESTRY FRIM AGRICULTURE - MARDI TC AGRICULTURE (MOA) DNA: Designated National Authority CEMD: Conservation and Environmental Management Division MEGTW: Ministry of Energy, Green Technology and Water NRE: Ministry of Natural Resources and Environment MOA: Ministry of Agriculture TC: Technical Committee FRIM: Forest Research Institute Malaysia MARDI: Malaysian Agricultural Research and Development Institute National CDM Criteria 1. Project must support the sustainable development policies of Malaysia and bring direct benefits towards achieving sustainable development; 2. Project must involve participation of Annex 1 Party/Parties as CER buyer. In addition, they are encouraged to participate as equity or technology providers; 3. Project must provide technology transfer benefits and/or improvement of technology; including enhancement of local technology; 4. Project must fulfill all conditions underlined by the CDM Executive Board; and 5. Project proponent should justify the ability to implement the proposed CDM project activity * Where flaring is used in methane abatement project, the project developer is required to utilize at least 10 percent of biogas for energy utilization
Revision on National CDM Criteria Criterion 2 Implementation of CDM projects must involve participation of Annex I Party/Parties An Annex I Party is considered to participate in a project in any of the following cases: a) Participation of an Annex I party as buyer, provider of equity and technology; or b) Participation of an Annex I party as buyer and provider of equity; or c) Participation of an Annex I party as buyer and technology provider This criterion has revised to: Project implementation must involve participation of Annex-1 Party/Parties as CER Buyer. In addition, they are encouraged to participate as equity or technology providers. Revision on National CDM Criteria Criterion 3 Project must provide technology transfer benefits and/or improvement of technology This criterion has revised to: Project must provide technology transfer benefits and/or improvement of technology, including enhancement of local technology Additional requirement on 10% Utilisation of biogas for energy utilisation Where flaring is used in methane abatement project, the project developer is required to utilise at least 10% of biogas for energy utilisation
Proposed Indicator for SD Criterion 11 Proposed Indicator for SD Criterion (continued)
Further Requirements Criteria 1 Criteria 2 Criteria 3 Show the Letter from State Department of Environment (EIA requirement, EQA 1974 complience) Show the Letter of Intent which signed by both parties (Buyer and Project Developer) Validation Report Criteria 5 MAA, FORM 9, 24, 49 and MAA Extra Documentation SREP approval letter Malaysia CDM Information Handbook Content: Introduction CDM Project Formalization National CDM Criteria Procedure for CDM Projects Contacts
Approval Process Option 1 National Committee on CDM (NCCDM) Project Proponent Project Idea Note Fulfill National Criteria No Operational Entity (OE) Designated National Authority (DNA) CDM Executive Board Project Design Document Fulfill International Criteria Host Country s Letter of Approval Registration No Yes On condition of OE validation of PDD Approval Process Option 2 National Committee on CDM (NCCDM) Project Proponent Project Design Document Operational Entity (OE) Designated National Authority (DNA) Fulfill National & International Criteria Host Country s Letter of Approval No Yes On condition of OE validation of PDD CDM Executive Board Registration
Malaysia CDM Administration Fee Type of Document Administration Fee (RM) PIN 1,000 PDD 2,500 (Small Scale Project) 5,000 (Large Scale Project) Support for CDM Implementation Tax Incentive for Reduction of GHG Emissions Fiscal Incentives for Renewable Energy (RE) Fiscal Incentives for Energy Efficiency (EE) Feed-in-tariff (FiT)
CDM Application (Energy Project) as of June 2012 Year No. of Projects Estimated ER (tco 2e ) 2002 3 124,987 2003 2 62,190 2004 9 918,275 2005 25 2,823,171 2006 21 2,621,098 2007 45 4,404,588 2008 50 4,342,384 2009 24 1,632,589 2010 14 946,162 2011 27 1,858,370 2012 24 3,871,937 TOTAL 244 23,605,922 CDM Application (Project Type) Estimated ER by project type 2,042,000 160,000 104,800 552,545 660,651 4,414,181 203,052 2,041,948 311,444 158,639 596,254 1,784,376 62,011 1,058,839 3,897,187 Empty Fruit Bunch (EFB) Wood Waste Palm Oil Mill Effluent (POME) Energy Efficiency (EE) Fuel Switch Landfill Municipal Waste to Energy Animal Waste Hydro Mini Hydro Biodiesel - Transportation Chemical Industry Oil and Gas Manufacturing Industries Others ( Rice Husks, Palm Kerne
CER Issued Projects (as of June 2012) No. Type of Project No. of Project CERs Issued (tco2 eq.) 1. Biomass ( i.e. EFB) 9 1,084,248 2. Biogas ( i.e. POME, landfill ) 15 500,038 3. Fuel Switch 1 572,668 4. Hydropower 1 8,372 5. Energy Efficiency 1 775,138 TOTAL 27 2,940,464 CDM Application (Energy Project) 77 energy projects with estimated potential emission reduction amounting 5,286,332 tco 2-eq has been successfully registered with CDM EB. 27 CDM projects were issued CER, amounting to 2,940,464 tco 2-eq @ amounting to USD 29.40 million (RM 93.33 million).
Trend and Analysis of CDM Projects 1. Malaysia CDM project associated with RE (70%), EE (7%), Landfill (8%) and others (15%) 2. More on small scale of the CDM projects 3. More projects on Methane Avoidance, Methane Recovery, Off-grid electricity generation, Landfill and little on Energy Efficiency 4. CERs value and prices varies depends on project agreement 5. Issues: - Uncertainty of Second CP of Kyoto Protocol - Fluctuation of CER price - Buyer of CER Conclusion Current CDM potential in Malaysia associated with energy biomass, biogas, hydro and waste management landfill gas, MSW, Composting Future potential transport sector, biofuel, oil and gas, various industrial sectors and agriculture sector CDM : tool to turn economically unattractive projects into attractive investments Opportunities to develop new markets for innovative, environmental friendly technologies
Contact for Further Information (DNA) Designated National Authority Environmental Management & Climate Change Division Ministry of Natural Resources and Environment Level 6, Tower Block 4G3, Precinct 4 Federal Government Administrative Centre 62574 PUTRAJAYA Contact Person: Dr. Lian Kok Fei Tel. No.: 603-8886 1126 E-mail: drlian@nre.gov.my Contact Person: Mr. Sharil Faizal Abdul Jani Tel. No.: 603-88861137 E-mail: faizal@nre.gov.my Fax No.: 603-8888 4473 Website: www.nre.gov.my Contact for Further Information (DNA) CDM Energy Secretariat Malaysian Green Technology Corporation No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9 43650 Bandar Baru Bangi Selangor Darul Ehsan Malaysia Contact person: Cik Sazalina Zakaria Tel. No.: 603-8921 0852 E-mail: sazalina@greentechmalaysia.my Fax No. :603-8921 0801 Website: www.greentechmalaysia.my
CDM Forestry Secretariat Forest Research Institute Malaysia (FRIM) 52110 Kepong, Selangor Darul Ehsan, Malaysia Contact person: Dr. Norini Haron Tel. No.: 603-6279 7540 E-mail: norini@frim.gov.my Fax No. : 603-6280 4629 Website: www.frim.gov.my CDM Agriculture Secretariat Malaysian Agricultural Research and Development Institute (MARDI) Ibu Pejabat MARDI Peti Surat 12301 Pejabat Besar Pos 50774 Kuala Lumpur Contact person: Dr. Abd Jamil Zakaria Tel. No.: 603-8943 7390 E-mail: zajamil@mardi.gov.my Contact person: Mr. Shuhaimen Ismail Tel. No.: 603-8943 7025 E-mail: aimen@mardi.gov.my Fax No. : 603-8948 7639 Malaysian Green Technology Corporation No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9 43650 Bandar Baru Bangi, Selangor Darul Ehsan Website: www.greentechmalaysia.my E mail: info@greentechmalaysia.my 28
CER issued projects Project Name CERs Issued (tco2 eq) Biomass Energy Plant-Lumut 116,620 Replacement of Fossil Fuel by Palm Kernel Shell Biomass in the Production of Portland Cement 572,668 SEO Biomass Steam and Power Plant in Malaysia 130,079 LDEO Biomass Steam and Power Plant in Malaysia 97,059 Sahabat Empty Fruit Bunch Biomass Project 72,380 Jenderata Steam & Power Plant 15,888 Methane Recovery in Wastewater Treatment, Project AMA07- W-01, Perak, Malaysia Landfill Gas Recovery and Utilization at Bukit Tagar Sanitary Landfill, Hulu Selangor in Malaysia Bintulu Combined-Cycle Project STG-Unit No,9 Tanjung Kindurong, Bintulu, Sarawak 14,417 155,107 390,909 CER issued projects (continued) Project Name CERs Issued (tco2 eq) AMA08-W-24, Methane Recovery in Wastewater Treatment, Pahang, Malaysia AMA08-W-25, Methane Recovery in Wastewater Treatment, Pahang, Malaysia Methane Capture and On-site Power Generation Project at Syarikat CahayaMuda Perak (Oil Mill) Sdn. Bhd. in Tapah, Perak, Malaysia 7,583 7,349 14,102 Mensilin Holding Biomass Energy Power Plant 12,523 AMA08-W-23, Methane Recovery in Wastewater Treatment, Sarawak, Malaysia AMA08-W-10, Methane Recovery in Wastewater Treatment, Kedah, Malaysia 14,749 11,445 Kuantan Jabor-Jerangau Integrated Landfill Management 4,582
CER issued projects (continued) Project Name CERs Issued (tco2 eq) AMA08-W-21, Methane Recovery in Wastewater Treatment, Johor, Malaysia AMA08-W-22, Methane Recovery in Wastewater Treatment, Johor, Malaysia 28,320 16,437 Landfill Gas Utilization at Seelong Sanitary Landfill, Malaysia 2,597 Taman Beringin Integrated Landfill Management Project, Kuala 8,041 Lumpur, Malaysia Seguntor Bioenergy 11.5MW EFB Power Plant 99,757 Kina Biopower 11.5MW EFB Power Plant 85,296 MY08-WWP-26, Methane Recovery in Wastewater Treatment, Pahang, Malaysia Methane Capture and On-site Power Generation Project at Sungai Kerang Palm Oil Mill in Sitiawan, Perak 46,613 10,419 CER issued projects (continued) Project Name CERs Issued (tco2 eq) Biomass Thermal Energy Plant- Hartalega Sdn. Bhd, Malaysia Kim Loong Methane Recovery for Onsite Utilization Project at Kota Tinggi, Johor, Malaysia 181,300 93,360 Sungai Kerling Hydropower Plant 8,372 Total 2,940,464