FIRST STAKEHOLDER CONSULTATIVE WORKSHOP

30TH JANUARY 2019

KRYSTAL BALLROOM, HOLIDAY VILLA,

SUBANG JAYA

PRESENTED BY:

TRI ECOEDGE SDN BHD

What is the Kigali Amendment?

1. An Agreement for reduction in the manufacture and

use of Hydrofluorocarbons (HFCs) which contribute

to global warming

2. Reduction is aimed at between 80-85% from their

respective baselines, by 2040s

3. Phase-down is projected to arrest global temperature

rise by about 0.50C of average global temperature

rise by 2100

4. Phase-down is needed to keep global temperature

rise to below 20C

Target Year Reduction Remarks

Date for Agreement coming into force: 1st January 2019

Baseline Years 2020, 2021 & 2022

Calculation Average production/consumption of HFCs for baseline

years plus 65% of HCFC baseline production/

consumption

Freeze date 2024 No additional

production/consumption

Step 1 target 2029 10% reduction

Step 2 target 2035 30% reduction

Step 3 target 2040 50% reduction

Step 4 target 2045 80% reduction

Article 5 Parties: Group 1 Phase-down Obligations

1. Project is commissioned by the World Bank in collaboration

with the Government of Malaysia (GOM)

2. The Department of Environment (DOE) Malaysia, is the

agency tasked by the GOM to oversee the implementation

of the project

3. The consultants appointed by the World Bank to undertake

the project is Tri EcoEdge Sdn Bhd

4. The DOE is represented by the National Ozone Unit (NOU)

who will assist the consultants in the project

Project Ownership and Responsibility

Principal Project Objectives

1. To develop a national inventory of HFCs that are imported,

used and banked in Malaysia, and to estimate current and

projected levels of HFC use and emissions

2. To estimate the baseline consumption based on the projected

consumption for years 2020, 2021 and 2022

3. To make recommendations for the technology pathway as well as

policies and strategies for Malaysia to comply with obligations of

the Kigali Amendment

Stages of Project Development

1. Establish by survey past HFCs consumption for years

between 2015 and 2018

2. Project HFC consumption to future years, 2020, 2021 and 2022

by applying growth scenario of “business as usual or BAU”

3. Calculation of Baseline consumption = Average

production/consumption of HFCs for 2020, 2021 & 2022 plus

65% of HCFC baseline production/consumption

4. Development of phase-down strategies and programs for

Malaysia to comply with phase-down taking into account

availability of alternatives, technology options, economic

impacts and other criteria to be determined

The Sectors to be Surveyed

No Sectors for Survey Comments

1. Air-conditioning (domestic,

commercial, industrial, mobile)

Manufacturing &

servicing

2. Refrigeration (domestic, commercial,

industrial, transport)

Manufacturing &

servicing

3. Fire protection Fixed & portable

4. Foam PU, XPS

5. Aerosol Medical, technical,

consumer

6. Solvent Metal, precision,

electronic cleaning

7. Chemical importers and suppliers

8. Customs records

The Project Schedule

N° ActivityMonths

1 2 3 4 5 6 7

1 Study Inception Stage

a. Kick Off Meeting with World Bank/ DOE

b. Review & confirmation of work scope, outputs, program of

work & other contractual matters with World Bank/ DOE

c. Preliminary data collection and collation, secondary database

build-up, information requirement confirmation

d

.

Listing exercise - identify and contact stakeholders and target

groups, preparation of survey list

e

.

Drafting survey questionnaire

f

.

Stakeholder engagement, 1st Consultative Workshop all

stakeholders (authorities, manufacturers, chemical suppliers,

service & technology providers)

Inception Report preparation for submission

2 Study 1st Stage

a. Continue with secondary data mining & collection

b Finalise survey questionnaires, do pilot testing, make

amendments & complete listing exercise

c Finalised survey plans and FGDs

d Start of primary survey

e. Progress Report preparation for submission - stakeholder

listing, survey plans, findings from consultative workshop,

assessment of data collected

1

The Project Schedule (cont’d)

N° ActivityMonths

1 2 3 4 5 6 7

3 Study 2nd Stage

a. Continuation of Primary survey

b. Survey data collection, collation, quality assurance

.c Verification and analysis of data from survey

d. Preparation of Survey Report

e. Policy & regulatory framework review

f. Technology options review

g. Interim Report preparation and submission (past consumption

& projections of HFC use, proposed baseline)

4 Study 3rd Stage

a. Review of Interim & Survey Reports with Bank/ DOE

a. Policy & regulatory framework report, technology options

review report submissions and review

a. Draft Report preparation and submission

5 Study Final Stage

a. Engagement with World Bank and DOE on Draft Report

a. Stakeholder engagement, 2nd Consultative Workshop

a. Revisions & finalisation of Final Report

a. Final Report preparation for submission

Timeline for Project

No Project Stage Timeline

1. Start date for contract 3rd January 2019

2. Completion date for Project 31st July 2019

3. Inception report – revised project

schedule and work programme

February 2019

4. Progress report March 2019

5. Interim report May 2019

6. Draft Final report June 2019

7. Final report July 2019

THE CHEMICAL

IMPORT-

EXPORT-USE

CIRCUIT

CUSTOMS MALAYSIA

ExportsImports

Chemical Importers/

Suppliers

Chemical Users Listing:

Air-conditioning

Refrigeration

Foam

Fire protection

Aerosol/ Solvent

Services sector

Retailers/ consumers

Sales Turnover

Production Units

Number Services

Recovery & Recycle

Approach Strategy – Principal Data Sources

Principal data sources for historical records of HFCs import, export

and use in the country

1. Chemical importers and suppliers – local-based companies which

supply to manufacturers & services sector

2. Industry groups engaged in local manufacturing and servicing

which use HFCs

3. Customs records for import and export of HFC chemicals

4. Review and analyses of other secondary data and information –

Statistics Dept, MITI, MIDA

Approach Strategy – Chemical Suppliers

Chemical importers, exporters, suppliers

Past records of total HFC imports, exports and supply to

manufacturers and services sectors

Records of chemical type, quantity and users of such chemicals – by

industry category or sector

Cross-check with import/export data maintained by Customs

Department for verification and comparative assessment of closeness

of fit between the two sets of data

Determine possible reasons or causes for any obvious variation

between them

Approach Strategy – Manufacturing & Servicing

Manufacturing and servicing sectors – by survey and focus group

discussions

1. Past records of HFCs consumption for manufacturing and/or for

servicing – total or percentage breakdown

2. Information on types of chemicals used and sources of supply –

local supplies, direct imports and/or own blends (?)

3. Product type(s), annual production, % local consumption and %

exports

4. Focus of survey on main manufacturing and servicing entities

5. Focus group discussions with industry associations, e.g. MACRA,

MFPA, MAA

Approach Strategy – Customs Data

Customs data and records for past years – possible issues to be

addressed

1. HFC import and export is presently not “regulated” under specific

legislation unlike CFCs and HCFCs

2. No specific HS code has been identified, hence possibly

classification not according to chemical type

3. Cross-checking with chemical importers and exporters information

is needed for verification

HCFC × HFC × HFO × Others ×

HCFC-22 HFC-134a HFO-1234yf Methyl formate

HCFC-125 HFC-32 HFO-1234ze Methylal

HCFC-141b HFC-410A HFO-1233zd Ethanol

HCFC-142b HFC-404A HFO-1336mzzZ DME

HCFC-123 HFC-407A Others (specify) HC-290

HCFC-225ca/cb HFC-507A HC-600a

Others (specify) HFC-227ea Pentane (C,N,I)

HFC-245fa R-744 (CO2)

HFC-365mfc R-717 (NH3)

HFC-23 CO2 / Water

HFC-125 Others (specify)

HFC-143a

HFC-152a

Others (specify)

Chemical Categories for Survey

Survey – Data

Reporting By

Substance

Survey

Sectors

Survey –

Imports by

Year

Survey –

Exports by

Year

Survey –

Production

1. Historical data collected and verified provides the basis for

prediction of future consumption to year 2022 and beyond

2. Accuracy of baseline data is crucial as inaccurate data especially

over or under declaration will mean that the Baseline level which

is predicted and adopted by Malaysia may be higher or lower

than in reality

3. Lower predicted Baseline level will affect future availability of

HFCs for industry use while higher levels will require greater

quantities for phase-down

Importance of Historical Data

1. Historical data will provide information for determining past

trend in HFC consumption and use. The annual growth rate

of consumption of specific HFC chemical is then established

2. Determination of the “business as usual” (BAU) scenario will

be undertaken in consultation with the various stakeholders

and authorities to ensure that the scenario which is adopted

for future consumption prediction is appropriate for the

country

3. Projections based on BAU for baseline years 2020, 2021 &

2022 are used in the calculation of Baseline level for

Malaysia

Projections of Future Consumption

1. Draft strategies will be formulated based on consensus

through consultation with all stakeholders and the

authorities

2. Draft strategies will be discussed in a second stakeholder

consultative workshop at the Draft Report stage of the Project

3. Inputs from all stakeholders will be reviewed and applied for

finalizing the recommended strategies and program of action

for phase-down of HFCs.

Strategies and Programs for Phase-down