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					 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
               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
 INSTITUTIONAL ARRANGEMENT
• 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
      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
            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
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
    CDM’s National Institutional Arrangement
                    Notification
Application                    Ministry of                              Exec. Board
for projects                    Science,                                  of CDM
                               Technology
                             and Environment
  Additional                                                            Submission
  information,         National CDM Committee
  clarification
                      Technical Recommendations
                      evaluation

 Technical Committee for Energy                  Technical Committee for Forest


                                  Ministry of Science, Technology and
                                      the Environment, Malaysia
     Approval Procedure For CDM Projects In Malaysia
                                     Project
                                    Developer

                                     Project
                                    Idea Note


                                     Fulfill
 National Committee on              National              No
         CDM                         Criteria
      (NCCDM)                                 Yes – On condition of
                                              OE validation of PDD
                                 Project Design
                                   Document


     Operational                      Fulfill           No
     Entity (OE)                   International
                                      Criteria


Designated National             Host Country Letter
 Authority (DNA)                   of Approval


       CDM
                                   Registration
   Executive Board
                         Ministry of Science, Technology and
                             the Environment, Malaysia
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
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
             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
PRIORITISED AREAs
• Energy Efficiency
• Renewable Energy
• Low Priority on
  LULUCF Projects




             Ministry of Science, Technology and
                 the Environment, Malaysia
PRIORITISED PROJECTS
    ENERGY EFFICIENCY
    AND RENEWABLE ENERGY

Emission reductions
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
    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
    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
THANK YOU




Ministry of Science, Technology and
    the Environment, Malaysia

				
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