Ministry of Science, Technology and the Environment, Malaysia 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 13 th July 1994 Signed Kyoto Protocol on 12 th March Ratified the Protocol on 4 th 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 Application for projects Ministry of Science, Technology and Environment National CDM Committee Technical Committee for Energy Additional information, clarification Technical evaluation Recommendations Notification CDM’s National Institutional Arrangement Technical Committee for Forest Exec. Board of CDM Submission

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

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