carbon trading through clean development … · landfill (8%) and others (15%) • more on small...

Copyright Reserved GreenTech Malaysia

CARBON TRADING THROUGH CLEAN DEVELOPMENT MECHANISM

MALAYSIAN GREEN TECHNOLOGY CORPORATION


OUTLINE

228/6/13

Introduction

CDM Energy Projects

CDM Potential


INTRODUCTION

National GT Policy

GreenTech Malaysia is the nation’s lead corporation catalysing Malaysia’s growth as a global hub for green technology

•Birth-National Green Technology Policy (2009)

•Position Malaysia as a world hub for green technology• Our Strategies:−Awareness and promotion−Competency and capacity development−Policies and financing mechanism

Inception: 12 May 98 Rename: 07 Apr 2010

Focus:CENTRE for EE, RE, Technological R&D and Demo


United Nations Framework Convention on Climate Change

(UNFCCC)

A global legal instrument (international agreement) to protect the climate system and stabilise GHG emissions

Adopted in 1992, entered into force in 1994

Status of participation: 189 Parties

Kyoto Protocol Adopted at third Conference of Parties (COP) to the UNFCCC in Kyoto in 1997

Required ratification of > 55 countries representing > 55% of GHG emissions

Entered into force on February 16th, 2005 after ratification of the Russian Federation

Now 163 countries covering 61.6% of global emissions have ratified the protocol

CLIMATE CHANGE ACTION


WHAT ANNEX I COUNTRIES CAN DO?

Limitations of CO2 emissions in developed countries (Annex I)

4 options for companies

1/ Pay expensivefines.

2/ Carry out carbon reduction through processes improvement.

3/ Buy emissions credits on the CO2 market (ETS).

4/ Carry out carbon reduction through technology transfers in CDM or JI project.


FLEXIBLE MECHANISMS

ET - Emissions TradingAAU (Assigned Amount Units) are exchanged between Annex I countries

JI - Joint ImplementationAnnex I investors receive ERUs (Emission Reduction Units) by investing in a project in another Annex I nation which reduces GHG emissions

CDM - Clean Development MechanismAnnex I investors receive CERs (Certified Emission Reductions) by investing in a project in a non-Annex I nation which reduces GHG emissions


WHY CDM?

Emission reductions more expensive in developed than developing countries Two objectives:

Help Annex 1 countries meet their objectives in a cost-effective wayContribute to sustainable development of the host country (Non-Annex)


HOW THE CDM WORKS


INVOLVEMENT OF MALAYSIA

United Nations Framework Convention on Climate Change (UNFCCC)

- Signed on 9 June 1993

Kyoto Protocol

- Signed on 12 March 1999


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


NATIONAL CDM CRITERIA

1. Project must support the sustainable development policiesof 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


CDM ENERGY PROJECTS


13

CDM APPLICATION (BY YEAR)

*as of Sept 2013*total application = 250


CDM APPLICATION (BY PROJECT TYPE)

14*as of Sept 2013


CDM APPLICATION (ENERGY PROJECT)

• 101 energy projects with estimated potential emission reduction amounting 6,957,831 tCO2e/yr has been successfully registered with CDM EB.

• 37 CDM projects were issued CER, amounting to 6,131,320 tCO2-eq


•KUB-Berjaya Enviro Sdn. Bhd.; CER issued: 371, 068 tCO2e

LANDFILL GAS RECOVERY AND UTILIZATION AT BUKIT TAGAR SANITARY LANDFILL, HULU SELANGOR


KINA & SEGUNTOR 11.5 MW BIOMASS POWER PLANTS

• By Seguntor Bioenergy Sdn. Bhd & Kina Biopower Sdn. Bhd.; CER issued: 1,315, 672 tCO2e


TREND AND ANALYSIS OF CDM PROJECTS

• Malaysia CDM project associated with RE (70%), EE (7%), Landfill (8%) and others (15%)

• More on small scale of the CDM projects• More projects on Methane Avoidance, Methane Recovery,

Off-grid electricity generation, Landfill and little on Energy Efficiency

• CERs value and prices varies depends on project agreement

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POTENTIAL CDM PROJECTS

1. Palm Oil Industry with the highest renewable energy source and potential- Energy generation from biomass and biogas- More than 400 palm oil mills operating all over the

country which produces 30 million m3 of POME every year

- 85% of the mills use solely open ponds using anaerobic digestion

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2. Wastewater sector- Domestic wastewater accounted for a small portion of

methane inventory of the waste sector- Centralized sewerage treatment plants will increase

the amount of methane for CDM viability- At the moment, no application on CDM project

related to domestic wastewater



3. New focus area/sector for local CDM projects - Energy intensive sector e.g. iron and steel, cement etc. –

utilisation of renewable energy and energy recovery- High GHG emission contributor e.g. transport sector – NGV

vehicles- Energy efficient in electricity generation e.g. fuel cells

power plant and conversion of open cycle gas turbine to combined cycle gas turbine

- Conversion of solid waste to biofuels



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

• Opportunities to develop new markets for innovative, environmental friendly technologies


THANK YOU

M a l a y s i a n G r e e n Te c h n o l o g y C o r p o r a t i o n

N o . 2 , J a l a n 9 / 1 0 , P e r s i a r a n U s a h a w a n , S e k s y e n 9 ,4 3 6 5 0 B a n d a r B a r u B a n g i , S e l a n g o r D a r u l E h s a n , M A L AY S I A

T: + 6 0 3 - 8 9 2 1 0 8 0 0F : + 6 0 3 - 8 9 2 1 0 8 0 1 / 0 8 0 2

E : i n f o ( a ) g r e e n t e c h m a l a y s i a . m yw w w. g r e e n t e c h m a l a y s i a . m y

“Catalysing green technology deployment as a strategic engine for Malaysia’s economic growth”

carbon trading through clean development … · landfill (8%) and others (15%) • more on small...

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