CLEAN DEVELOPMENT MECHANISM: MALAYSIA’S EXPERIENCES

1. CLEAN DEVELOPMENT MECHANISM:MALAYSIA’S EXPERIENCES BY DR NADZRI YAHAYA DEPUTY DIRECTOR CONSERVATION AND ENVIRONMENTAL MANAGEMENT DIVISION Ministry of Science, Technology and the Environment, Malaysia

2. INTRODUCTION • Malaysia signed the United Nations Framework Convention on Climate Change on 9 June 1993 and subsequently ratified the Convention on 13th July 1994 • Signed Kyoto Protocol on 12th March 1999. Ratified the Protocol on 4th September 2002. Ministry of Science, Technology and the Environment, Malaysia

3. INSTITUTIONALARRANGEMENT • National Steering Committee on Climate Change- MOSTE, 1994 • National Committee on CDM established on 31 May 2002 • Established 2 Technical Committees • Technical Committee on Energy- Chaired by Ministry of Energy, Communication and Multimedia • Technical Committee on LULUCF (afforestation & reforestation) - Chaired by Ministry of Primary Industries Ministry of Science, Technology and the Environment, Malaysia

4. TOR of National Committee on CDM • Chairman – Deputy Secretary General MOSTE • Members – MECM, MPI, MOT, EPU, MOSTE, • Secretariat is at Conservation & Environmental Management Division, MOSTE • Provides policy direction to the Technical Committee • Evaluate and Endorsed the Recommendations made by Technical Committees • Forward Project Proposal to CDM Exec. Board • Monitor the Progress of Projects & Report the Status to the NSC on Climate Change Ministry of Science, Technology and the Environment, Malaysia

5. TOR of Technical Committees • To identify and define national CDM projects • To design selection criteria of CDM projects • To define sustainable development in the context of CDM projects • To seek and provide clarification if any from applicants of CDM projects • To accredit and register CDM service companies • To monitor on-going CDM projects • To recommend to the National CDM Board on selected or approved CDM projects Ministry of Science, Technology and the Environment, Malaysia

6. Members of Technical Committee on Energy • Malaysia Energy Centre (Secretariat) • Centre for Energy Studies, Sultan Iskandar Institute, Universiti Teknologi Malaysia • TNB, PETRONAS, SIRIM, others (as and when required) Ministry of Science, Technology and the Environment, Malaysia

7. CDM’s National Institutional Arrangement Notification Application for projects Exec. Board of CDM Ministry of Science, Technology and Environment Additional information, clarification Submission National CDM Committee Technical evaluation Recommendations Technical Committee for Energy Technical Committee for Forest Ministry of Science, Technology and the Environment, Malaysia

8. Approval Procedure For CDM Projects In Malaysia Project Developer Project Idea Note Fulfill National Criteria National Committee on CDM (NCCDM) No Yes – On condition of OE validation of PDD Project Design Document Fulfill International Criteria No Operational Entity (OE) Designated National Authority (DNA) Host Country Letter of Approval CDM Executive Board Registration Ministry of Science, Technology and the Environment, Malaysia

9. National Criteria For Selection of CDM Projects • In Accordance with Sustainable Development Policies • Transfer of Technology • Emergence of new technology instead of conventional one • Improvement of existing technology • Direct benefits towards achieving sustainable development. • Conform to conditions as laid down by CDM Executive Board Ministry of Science, Technology and the Environment, Malaysia

10. NATIONAL CRITERIA FOR SMALL-SCALE CDM ENERGY PROJECTS • in accordance with one or more of the sustainable development strategies of the energy sector • conform to the environmental regulation • utilises the best available technologies, including local technologies • must justify their ability to implement the proposed project based on the following: • locally incorporated company • minimum paid up capital of RM 100,000 • likely sources of financing for the project Ministry of Science, Technology and the Environment, Malaysia

11. Selection Priorities • Bilateral in Nature • Address mitigation Issues • Provide additional energy resources • Emergence of new technology instead of conventional one • Improvement of existing technology Ministry of Science, Technology and the Environment, Malaysia

12. PRIORITISED AREAs • Energy Efficiency • Renewable Energy • Low Priority on LULUCF Projects Ministry of Science, Technology and the Environment, Malaysia

13. PRIORITISED PROJECTS ENERGY EFFICIENCY AND RENEWABLE ENERGY Emissionreductions Energy efficiency - fuel switching, boiler, motor replacements Biofuels, biomass combustion Landfills - harnessing methane gas, better management of landfill sites - Waste management Ministry of Science, Technology and the Environment, Malaysia

14. Malaysia’ Energy Policy • Aims to ensure the provision of an adequate, secure and cost-effective energy supply in the country; • To provide a more optimum energy mix in the country, • Renewable Energy was announced as the fifth fuel in the new Five Fuel Strategy in the energy supply mix, • RE will contribute 5% of the country's total electricity demand by the year 2005 • Utilization of renewable resources, such as biomass, biogas, solar and mini-hydro, for energy generation Ministry of Science, Technology and the Environment, Malaysia

15. Malaysia’s concerns with CDM activities • Many prospectors but no real investors • Depressing CDM market • Assisting developing countries to achieve sustainable development or procuring CERs at low price • High cost of accreditation of operating entities • Registration Fees Ministry of Science, Technology and the Environment, Malaysia

16. THANK YOU Ministry of Science, Technology and the Environment, Malaysia