options in host countries...revision on national cdm criteria criterion 2 – implementation of cdm...

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

WG ON HUMAN CAPITAL

WG ON ADAPTATION

WG ON TRANSPORTATION

WG ON RESEARCH & INNOVATION

WG ON GREEN

NEIGHBOURHOOD

STEERING COMMITTEE

NATIONAL GREEN TECHNOLOGY AND CLIMATE CHANGE COUNCIL (MTHPI)

WG ON GREEN

DEVELOPMENT

NATIONAL KEY ECONOMIC AREA

WG ON PROMOTION &

PUBLIC AWARENESS

WG ON INDUSTRY

NATIONAL COMMITTEE ON CLEAN DEVELOPMENT MECHANISM (NCCDM)

NATIONAL GREEN TECHNOLOGY POLICY

NATIONAL CLIMATE CHANGE POLICY

WG = Working Group

6

• 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

Related Policies and Plans

CDM Institutional Framework

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

RESPECTIVE SECRETARIATENERGY – GREENTECH MALAYSIA

FORESTRY – FRIMAGRICULTURE - MARDI

TCFORESTRY

(NRE)

TCENERGY(MEGTW)

NATIONAL COMMITTEE ON CDM Chaired by Deputy Secretary General (I), NRE -DNA Members from Government sector and NGOs Secretariat: CEMD

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

TCAGRICULTURE

(MOA)

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; orb) Participation of an Annex I party as buyer and provider of equity; orc) 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.

Criterion 3 Project must provide technology transfer benefits and/or improvementof 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

Revision on National CDM Criteria

Proposed Indicator for SD Criterion

11

Proposed Indicator for SD Criterion (continued)

Further Requirements

Criteria 1 Show the Letter from State Department of Environment (EIA requirement, EQA 1974 complience)

Criteria 2 Show the Letter of Intent which signed by both parties (Buyer and Project Developer)

Criteria 3 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

Project Proponent

Project Idea Note

FulfillNationalCriteria

Project Design Document

Registration

No

No

Operational Entity (OE)

National Committee on CDM

(NCCDM)

Host Country’s Letterof Approval

CDM Executive Board

Designated National Authority (DNA)

FulfillInternational

CriteriaYes – On condition of OE validation of PDD

Project Proponent

Project Idea Note

Project Proponent

Project Idea Note

Project Proponent

Project Idea Note

Project Proponent


Project Idea Note

Project Proponent


Project Idea Note

Project Proponent



Project Idea Note

Project Proponent



Project Idea Note

Project Proponent


Criteria



Project Idea Note

Project Proponent


Criteria



Project Idea Note

Project Proponent



Criteria



Project Idea Note

Project Proponent



Criteria



Project Idea Note

Project Proponent

Registration



Criteria



Project Idea Note

Project Proponent

Registration



Criteria



Project Idea Note

Project Proponent

Registration



Criteria



Project Idea Note

Project ProponentApproval Process – Option 1

Project Proponent


Registration

No

Operational Entity (OE)

National Committee on CDM

(NCCDM)


CDM Executive Board

Designated National Authority (DNA)

FulfillNational & International

CriteriaYes – On condition of OE validation of PDD

Approval Process – Option 2

Type of Document Administration Fee (RM)

PIN 1,000

PDD 2,500 (Small Scale Project)

5,000 (Large Scale Project)

Malaysia CDM Administration Fee

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 (tCO2e)

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

596,254

158,639

1,784,37662,011

1,058,839

160,000104,800

552,545

2,041,948

203,052

2,042,000

660,6514,414,181

311,444

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

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

CER Issued Projects (as of June 2012)

CDM Application (Energy Project)

77 energy projects with estimated potential emission reduction amounting 5,286,332 tCO2-eq has been successfully registered with CDM EB.

27 CDM projects were issued CER, amounting to 2,940,464 tCO2-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

Designated National AuthorityEnvironmental Management & Climate Change DivisionMinistry of Natural Resources and EnvironmentLevel 6, Tower Block 4G3, Precinct 4Federal Government Administrative Centre62574 PUTRAJAYA

Contact Person: Dr. Lian Kok Fei Tel. No.: 603-8886 1126E-mail: [email protected]

Contact Person: Mr. Sharil Faizal Abdul JaniTel. No.: 603-88861137E-mail: [email protected]

Fax No.: 603-8888 4473Website: www.nre.gov.my

Contact for Further Information (DNA)

CDM Energy SecretariatMalaysian Green Technology CorporationNo. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 943650 Bandar Baru BangiSelangor Darul EhsanMalaysia

Contact person: Cik Sazalina Zakaria Tel. No.: 603-8921 0852E-mail: [email protected]

Fax No. :603-8921 0801Website: www.greentechmalaysia.my

Contact for Further Information (DNA)

CDM Forestry SecretariatForest Research Institute Malaysia (FRIM)52110 Kepong,Selangor Darul Ehsan, Malaysia

Contact person: Dr. Norini HaronTel. No.: 603- 6279 7540E-mail: [email protected] No. : 603-6280 4629 Website: www.frim.gov.my

CDM Agriculture SecretariatMalaysian Agricultural Research and Development Institute (MARDI) Ibu Pejabat MARDIPeti Surat 12301Pejabat Besar Pos50774 Kuala Lumpur

Contact person: Dr. Abd Jamil ZakariaTel. No.: 603- 8943 7390E-mail: [email protected] person: Mr. Shuhaimen Ismail Tel. No.: 603- 8943 7025E-mail: [email protected] No. : 603-8948 7639

28

MalaysianGreenTechnologyCorporation

No.2,Jalan 9/10,Persiaran Usahawan,Seksyen 9

43650BandarBaru Bangi,SelangorDarul Ehsan

Website:www.greentechmalaysia.my E‐mail:[email protected]

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

14,417

Landfill Gas Recovery and Utilization at BukitTagar Sanitary Landfill, Hulu Selangor in Malaysia

155,107

Bintulu Combined-Cycle Project STG-Unit No,9 TanjungKindurong, Bintulu, Sarawak

390,909


AMA08-W-24, Methane Recovery in Wastewater Treatment, Pahang, Malaysia

7,583

AMA08-W-25, Methane Recovery in Wastewater Treatment, Pahang, Malaysia

7,349

Methane Capture and On-site Power Generation Project at Syarikat CahayaMuda Perak (Oil Mill) Sdn. Bhd. in Tapah, Perak, Malaysia

14,102

Mensilin Holding Biomass Energy Power Plant 12,523

AMA08-W-23, Methane Recovery in Wastewater Treatment, Sarawak, Malaysia

14,749

AMA08-W-10, Methane Recovery in Wastewater Treatment, Kedah, Malaysia

11,445

Kuantan Jabor-Jerangau Integrated Landfill Management 4,582

CER issued projects (continued)


AMA08-W-21, Methane Recovery in Wastewater Treatment, Johor, Malaysia

28,320

AMA08-W-22, Methane Recovery in Wastewater Treatment , Johor, Malaysia

16,437

Landfill Gas Utilization at Seelong Sanitary Landfill, Malaysia 2,597

Taman Beringin Integrated Landfill Management Project, Kuala Lumpur, Malaysia

8,041

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

46,613

Methane Capture and On-site Power Generation Project at Sungai Kerang Palm Oil Mill in Sitiawan, Perak

10,419



Biomass Thermal Energy Plant- Hartalega Sdn. Bhd, Malaysia

181,300

Kim Loong Methane Recovery for Onsite Utilization Project at Kota Tinggi, Johor, Malaysia

93,360

Sungai Kerling Hydropower Plant 8,372

Total 2,940,464


options in host countries...revision on national cdm criteria criterion 2 – implementation of cdm...

Documents