CARBON TRADING THROUGH CLEAN DEVELOPMENT … · Landfill (8%) and others (15%) • More on small...
Transcript of CARBON TRADING THROUGH CLEAN DEVELOPMENT … · Landfill (8%) and others (15%) • More on small...
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CARBON TRADING THROUGH CLEAN DEVELOPMENT MECHANISM
MALAYSIAN GREEN TECHNOLOGY CORPORATION
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OUTLINE
228/6/13
Introduction
CDM Energy Projects
CDM Potential
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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
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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
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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.
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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
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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)
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HOW THE CDM WORKS
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INVOLVEMENT OF MALAYSIA
United Nations Framework Convention on Climate Change (UNFCCC)
- Signed on 9 June 1993
Kyoto Protocol
- Signed on 12 March 1999
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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
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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
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CDM ENERGY PROJECTS
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CDM APPLICATION (BY YEAR)
*as of Sept 2013*total application = 250
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CDM APPLICATION (BY PROJECT TYPE)
14*as of Sept 2013
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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
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•KUB-Berjaya Enviro Sdn. Bhd.; CER issued: 371, 068 tCO2e
LANDFILL GAS RECOVERY AND UTILIZATION AT BUKIT TAGAR SANITARY LANDFILL, HULU SELANGOR
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KINA & SEGUNTOR 11.5 MW BIOMASS POWER PLANTS
• By Seguntor Bioenergy Sdn. Bhd & Kina Biopower Sdn. Bhd.; CER issued: 1,315, 672 tCO2e
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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
POTENTIAL 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 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
• Opportunities to develop new markets for innovative, environmental friendly technologies
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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”