MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT, MALAYSIA

1. MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT, MALAYSIA Innovation for Green DevelopmentASEAN-China Environment Cooperation ForumOctober 22, 2011Conference Center, Liyuan Resort, Nanning, Guangxi Dr. Gary W. Theseira ENVIRONMENTAL MANAGEMENT AND CLIMATE CHANGE DIVISION

2. Outline • Current Status of Greenhouse Gas Emissions in Malaysia • Proposed GHG Mitigation Framework • Initiatives and Early Results • Transition to Green Growth Through Innovation • Delivering Innovation • Transparency and Emerging International Frameworks

3. GHG emissions and associated intensity of GDP from 1994 - 2020 Source: Second National Communications, 2010

4. Malaysia’s Voluntary Indicator Announced “voluntary reduction of up to 40% in terms of carbon emission intensity of GDP by the year 2020 compared to 2005 levels. ….conditional on receiving the transfer of technology and finance of adequate and effective levels from Annex 1 countries” Prime Minister YAB Dato’ Sri Mohd. Najib bin Tun Abdul Razak, 17th December 2009, during his address to the 15th Conference of the Parties to the UNFCCC

5. Target Reduction of Emission Intensity of GDP What potential mitigation options are available to achieve the 40% reduction? 40% less than BAU (0.414) 0.621 0.373 Source: NC2, 2010

6. Initiatives at the National Level • Endorsement of National Climate Change Policy and National Green Technology Policy • Integration of renewable, energy, energy efficiency and solid waste management in the 10th Malaysia Plan • Voluntary carbon offset scheme involving corporate sector • Provide Green Technology Financing Scheme (GTFS) • Formulated Low Carbon Cities Framework & Assessment System (LCCF)

7. Long-Term Roadmap Development • Spearheaded by NRE under the 10th Malaysia Plan • Collaboration with UNITEN and The Energy and Resources Institute of India (TERI) • Series of stakeholder consultations and workshops • Data collection exercises • Inception report produced in December of 2010 • Potential mitigation options identified • Final report due in mid-2012

8. Potential Mitigation by Sector

9. Malaysia Green Technology and Climate Change Council Chaired by Hon. Prime Minister Joint secretariat – Ministry of Energy, Green Technology and Water and the Ministry of Natural Resources and Environment Seven working groups Industry Research & Innovation Human Capital Promotion and Public Awareness Transportation Green Townships Adaptation

10. Directives and Initiatives • No government offices cooler than 24 degrees Centigrade • Cash rebates for purchasing five-star rated appliances • GBI accreditation for energy efficient buildings • National automobile company pilot-testing hybrid and full electric vehicles • Post-consumer edible oil and other oil recycling for bio-diesel production • Efforts to accelerate tree planting • Eco-labelling (SIRIM) • Renewable Energy Act (December) • Import and excise duty exemption for hybrids

11. Early results • Energy Efficiency – 4.544 million tons CO2eq • Renewable Energy (OP mesocarp) – 19 million tons CO2eq • Waste Mgt. (paper recycling) – 6.187 million tons CO2eq

12. Promoting the transition towards green growth through Innovation • Move to a knowledge-based economy ; • The private sector must be encouraged to take the lead; • Market-driven policies related to industry structure, upgrading and expansion, as well as product or process development and specialization; • Market to dictate the pace of technological innovation on the basis of sustainable demand trends; • Market to decide whether to utilize domestically-sourced or internationally-acquired innovative products or processes; • Improvements in physical and ICT infrastructure as well as human capacity to facilitate the location and development of knowledge and innovation investment platforms;

13. Delivering Innovation on green growth (rm100 million in 2012budget) • Develop innovation in schools and public institutions of higher learning as well as in rural areas; • Continue the Innovation Program by the Malaysian Foundation for Innovation (YIM) to encourage development of new ideas and commercialization of innovative products; • The Cipta1Malaysia Award (C1PTA) recognizes the most innovative inventions of students and youth at the national level; • Grow culture of innovation through reality programmes, documentaries on innovation and publication of articles; • Establish a Market Validation Fund managed by the Malaysian Technology Development Corporation together with the Malaysia Innovation Agency;

14. Delivering Innovation on green growth (rm100 million in 2012budget - continued) • Organize the World Innovation Forum 2012 (YIM); • Organize the Asia Business Angel Forum (Cradle Sdn. Bhd); • Give industrial design services Pioneer Status with income tax exemption of 70% for 5 years; • Continue to give priority to the development of the education system to produce talented, highly-skilled, creative and innovative workforce(RM50.2 billion in 2012); • Primary Objective - cultivate indigenous IP.

15. Transparency – the link to addressing emerging international frameworks in Durban and Rio+20 • Emerging international frameworks are calling for increased transparency on the part of developing countries; • Compliance with regulations and guidelines, communication and above all, transparency have become desirable commodities which add value and visibility to corporate brands; • Increasing numbers of educated, aware and informed consumers actively seek products that meet and even exceed the criteria for environment protection, social justice, health and safety; • Transparency in operations and product information are perceived more favourably by consumers, even though products may not be as environmentally friendly as those of a non-transparent competitor;

16. Thank you Gary W. Theseira gtheseira@nre.gov.my +603 8886 1131/+6012 205 8454