cdminmalaysia_cdmawareness5oct2010
TRANSCRIPT
GreenTech MALAYSIA1
CLEAN DEVELOPMENT CLEAN DEVELOPMENT MECHANISM (CDM) IN MECHANISM (CDM) IN
MALAYSIAMALAYSIA:PROCESS AND :PROCESS AND PROCEDUREPROCEDURE
CDM AWARENESS WORKSHOP 2010CDM AWARENESS WORKSHOP 2010
5 OCTOBER 2010 5 OCTOBER 2010
bybyCDM ENERGY SECRETARIATCDM ENERGY SECRETARIAT
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Presentation OutlinePresentation Outline
• Introduction• CDM Institutional Framework• CDM Development in Malaysia
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Involvement in Climate Change ProcessInvolvement 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
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CDM in MalaysiaCDM in Malaysia
• Institutional Framework and Approval Procedure are in placed
• National CDM Criteria endorsed
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CDM Institutional ArrangementCDM Institutional Arrangement
• National Steering Committee on Climate Change (NSCCC) – established in 1994
• National Committee on CDM (NCCDM) established on 31 May 2002
• Designated National Authority (DNA) appointed in May 2003– Ministry of Natural Resources and Environment (NRE)
• Established 3 Technical Committees:– Technical Committee on Energy
(Chaired by Ministry of Energy, Green Technology and Water)– Technical Committee on Forestry (Chaired by Ministry of Natural Resources and Environment)– Technical Committee on Agriculture (Chaired by Ministry of Agriculture)
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CDM Institutional FrameworkCDM 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
TCFORESTR
Y(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
TCAGRICULTUR
E(MOA)
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CDM Project CycleCDM Project Cycle
Project Idea Note(PIN)
1
Initial project Idea
Conditional Letter of Approval
2
Carbon Contracting6
Project Design
Document (PDD)
3
Project Validation
4
Host Country Letter of Approval
5
Project Registration
7
Project Monitoring
8
Verification&
Certification9
Issuance of CERs10
Revenuefrom CERs
PROJECT DESIGN PHASE PROJECT REGISTRATION
PHASE
PROJECT IMPLEMENTATIONPHASE
Request for Registration-Small scale
4 weeks-Large scale
8 weeks
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APPROVAL PROCESS – OPTION 1
Project Proponent
Project Idea Note
FulfillNationalCriteria
Project Design Document
Registration
No
No
Operational Entity (OE)
National Committee on CDM
(NCCDM)
Host Country’s Letter of 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
FulfillNationalCriteria
Project Idea Note
Project Proponent
FulfillNationalCriteria
Project Idea Note
Project Proponent
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
Host Country’s Letter of Approval
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
Host Country’s Letter of Approval
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
Registration
Host Country’s Letter of Approval
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
Registration
Host Country’s Letter of Approval
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
Registration
Host Country’s Letter of Approval
FulfillInternational
Criteria
Project Design Document
FulfillNationalCriteria
Project Idea Note
Project Proponent
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APPROVAL PROCESS – OPTION 2
Project Proponent
Project Design Document
Registration
No
Operational Entity (OE)
National Committee on CDM
(NCCDM)
Host Country’s Letter of Approval
CDM Executive Board
Designated National Authority (DNA)
FulfillNational & International
CriteriaYes – On condition of OE validation of PDD
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Project Idea Note
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Additional Information Sheet
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Checklist for submission of PIN
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Checklist for submission of AIS
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Malaysia CDM Administration Fee
Type of Document Administration Fee (RM)
PIN 1,000
PDD 2,500 (Small Scale Project)5,000 (Large Scale Project)
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National CDM CriteriaNational 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
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Further Requirements
CRITERIA 1 Show the Letter of EIA exemption from State Department of Environment
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
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CDM Baseline 2008
Peninsular Malaysia
0.672 tCO2/MWh
Sabah 0.651 tCO2/MWh
Sarawak 0.825 tCO2/MWh
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CDM Application (Energy Project)CDM Application (Energy Project)As of September 2010As of September 2010
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 4,404,759
2008 50 4,342,384
20092010
2413
1,632,589286,809
TOTAL (PINs and PDDs) 192 17,216,262 18
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CDM Application (Project Type)CDM Application (Project Type)
Project Application by Project Type
Biogas - Palm Oil Mill Eff luent (POME), 3,803,599
Spent Bleaching Earth (SBE), 29,722
Biomass - Kenaf Waste, 30,833
Biomass - Wood Waste, 311,444
Biomass - Palm Kernel Shell (PKS), 135,358
Biomass - Empty Fruit Bunch (EFB), 4,261,709
Manufacturing Industries, 552,545Oil and Gas, 104,800
Chemical Industry, 160,000
Biodiesel - Transportation, 2,042,000
Mini Hydro, 185,852
Hydro, 2,041,948
Agriculture, 370,000
Animal Waste, 158,639
Municipal Waste, 596,254Landfill, 1,561,264Fuel Sw itch, 62,011 Energy Eff iciency (EE), 1,058,839
Biomass - Empty Fruit Bunch (EFB) Biomass - Palm Kernel Shell (PKS) Biomass - Wood Waste Biomass - Kenaf Waste
Spent Bleaching Earth (SBE) Biogas - Palm Oil Mill Effluent (POME) Energy Efficiency (EE) Fuel Switch
Landfill Municipal Waste Animal Waste Agriculture
Hydro Mini Hydro Biodiesel - Transportation Chemical Industry
Oil and Gas Manufacturing Industries
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Trend and Analysis of CDM Trend and Analysis of CDM ProjectsProjects
1. Malaysia CDM project associated with RE (70%), EE (7%), Landfill (8%) and others (15%)
2. More on small scale of the CDM projects3. 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
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CDM Application (Energy Project)CDM Application (Energy Project)
57 energy projects with estimated potential emission reduction amounting 4.2 mtCO2e has been successfully registered with CDM EB
Potential of energy generated (89.5 MWe and 300.2 MWth)
5 CDM projects were issued CER, amounting to 708,028 tCO2-eq @ USD7.1 mill (RM 24.1 mill)
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CERS IssuedCERS Issued
Project Name CERs Issued (tCO2eq)
Biomass Energy Plant-Lumut 76,716
Replacement of Fossil Fuel by Palm Kernel Shell Biomass in the Production of Portland Cement
366,260
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
37,914
TOTAL 708,028
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Bukit Tagar Sanitary Landfill
Heat Recovery Boiler & EnviroCycler in MASB Power Plant
Front view of MASB Power Plant
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Kina & Seguntor plants
BoilerFront view of the plant
Fuel treatment
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Monitoring Of CDM Projects
Issues raised• DOE validation process took longer time• Project monitoring is lengthy
– Calibration of equipment (for some of the equipment no “local calibrator”)
• Registration with CDM EB– Longer process (request for review and so
forth)• Methodology keep on changing every now and
then• More and more requirement or new guideline
from CDM EB• SREP: Agreement on the REPPA • No issues on local CDM process
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Potential CDM ProjectsPotential 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
Potential CDM ProjectsPotential CDM Projects
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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
Potential CDM ProjectsPotential CDM Projects
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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
• Total of 18 million tonnes CERs/yr estimated in 2010
• Opportunities to develop new markets for innovative, environmental friendly technologies
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Contact for Further Information (DNA)
Designated National AuthorityEnvironmental Management & Climate Change Division Ministry 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
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Contact for Further InformationCDM Energy SecretariatMalaysian Green Technology Corporation No. 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
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Contact for Further Information
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Thank You
Malaysian Green Technology Corporation
No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9
43650 Bandar Baru Bangi, Selangor Darul Ehsan
Website: www.greentechmalaysia.my E-mail: [email protected]