GREEN ECONOMY IN MALAYSIA

Transcription

1 GREEN ECONOMY IN MALAYSIA MOHAMED AZRIN MOHAMED ALI Vice President Research, Development and Commercialization Green Jobs Training Workshop 16 July 2012

2 Table of Content Green Economy Situational Analysis for Malaysia Green Business Potential National Green Technology Strategies Green Technology Financing Scheme Example of Projects

3 PM s Pledge at COP15 To reduce carbon emission up to 40% in terms of emission intensity of Gross Domestic Product (GDP) by 2020 compared with its 2005 levels, subject to assistance from developed countries

4 GREEN ECONOMY What are the issues Countries in the Asia-Pacific region are the most vulnerable to climate-related disasters. As much as 85 per cent of deaths and 38 per cent of global economic losses due to disaster originated in this region from 1980 to Recent climate-related disasters, such as Cyclone Nargis in Myanmar in 2008 and the floods in Pakistan in 2010 and in Thailand in 2011, have been among the worst ever recorded in those countries. If we are to limit the rise in global temperature to less than 2º C by 2050, as acknowledged by the parties of the United Nations Framework Convention on Climate Change, global emissions have to reduce by half by that time. The Asia-Pacific region, while emitting relatively low levels of greenhouse gases on a per capita basis, is one of the fastest-growing sources of climate impacting emissions.

5 Global Emissions Growth Rates Malaysia one of the Fastest Carbon Emission Growth in the World (PEMANDU, 2010)

6 National Oil Production Trends Declining Oil Production (PEMANDU, 2010) Malaysia s dependence on fossil fuels needs to be supplemented with alternatives. The sustainability of economic contributions from Malaysia s oil production is a major cause for concern moving forward.

7 Domestic energy production sustainability is becoming an issue Compared with major economies across the world, Malaysia s energy intensity of 34% is above average. Not only does the significantly higher energy consumption contribute to higher levels of emissions but the question of supply meeting demand is a cause of concern.

8 Malaysia s Gas Production Forecast Majority of Malaysia s power generation relies on domestic gas supply. With Malaysia s gas production forecasted to decline over the next 15 years, the pressure to increase Malaysia s alternative energy capacity is high.

9 Growing Concern in Water and Waste Management River Basins Quality Trends based on Suspended Solids (Department of Environment, 2006

10 Growing Concern in Water and Waste Management River Basins Water Quality Trend based on Biochemical Oxygen Demand Sub index (Department of Environment, 2006) )

11 GREEN ECONOMY What could be done Close the gap between ecological and economic efficiencies Creating more jobs and growth while reducing environmental impacts and improving resource efficiency Green economy via green growth can turn crisis into opportunity (unique leapfrogging strategy). Green growth can improve energy, water and resources security and help achieve the Economic Development targets. Requires a fundamental system change (higher growth and lower environmental impact) Restructuring both the visible (physical infrastructure) as well as the invisible structures of the economy (market prices, fiscal policies, institutions, governance and lifestyles

12 Estimates of potential additional sustainability related business opportunities by 2050 Source: World Business Council for Sustainable Development, Vision 2050: The New Agenda for Business (Geneva, 2010). PricewaterhouseCoopers estimates drawing on data from the International Energy Agency, the OECD and the World Bank.

13 Emerging markets for biodiversity and ecosystem services Note: FSC=Forest Stewardship Council, PEFC=Programme for Endorsement of Forest Certification, CDM=Clean Development Mechanism; VCS=verified carbon standard Source: Joshua Bishop and others, The Economics of Ecosystems and Biodiversity Report for Business, Executive Summary (Nairobi, United Nations Environment Programme, 2010), adapted from Forest Trends and the Ecosystem Marketplace, Payments for Ecosystem Services: Market Profiles (Washington, D.C., 2008)

14 Global Green Business Potential Green business is already growing. The world market of low-carbon and Environmental goods and services had already reached 3.2 trillion (about US$4.7 trillion) in 2008, up 5 per cent from the previous year. This was bigger than the GDP of Japan in Emerging low-carbon sectors account for about half of the world market of environmental goods and services, while renewable energy and traditional environmental sectors account for 30 and 20 per cent, respectively. The market is estimated to involve 1.4 million companies and employ more than 28 million people; and it s expected to grow by approximately 4 per cent annually over the next five years

15 Global Green Business Potential Some low-carbon sectors have been among the few to grow through the current economic crisis. Analysis from Bloomberg New Energy Finance reveals that asset finance of utility-scale clean energy projects surged to a record US$41.8 billion in the third quarter of 2011, up 9 per cent on the year s second quarter, with overall new investment reaching US$45.5 billion despite the European debt crisis. As part of the World Business Council for Sustainable Development s Vision 2050 project, Pricewaterhouse Coopers estimated the potential additional opportunities arising from sustainable approaches by 2050 At around US$3 $10 trillion annually, at constant 2008 prices, or up to 4.5 per cent of world GDP

16 GREEN TECHNOLOGY STRATEGIES Strategic Thrusts 1. Strengthen the institutional framework 2. Provide conducive environment for GT development 3. Intensify human capital development in GT 4. Intensify GT research and innovations 5. Promotion and public awareness RMK 10 RMK - 11 RMK - 12 Increased public awareness and commitment for the adoption and application of Green Technology through advocacy programmes Widespread availability and recognition of GT in terms of products, appliances, equipment and systems in the local market through standards rating and labeling Increased FDI & DDI in GT manufacturing & services sector Expansion of local research institutes and institutions and HLI to expand Research, Development, and Innovation activities in GT towards commercialization through appropriate mechanism GT becomes the preferred choice in procurement of product & services GT has larger local market share against other technologies, and contributes to the adoption of GT in regional markets Increased production of local GT products Increased Research Development and Innovation of GT by local universities and research institutions and are commercialized in collaborations with the local industry and multi-nationals companies Expansion of local SMEs & SMIs on GT into the global markets Expansion of GT application Inculcation of GT in Malaysian culture Widespread adoption of GT reduces overall resource consumption while sustaining national economic growth Significant reduction in national energy consumption Improvement of Malaysia s ranking in environmental ratings Malaysia becomes major producer of GT in the global market Expansion of international collaborations between local universities and research institutions with GT industries

17 GOALS OF NEW ECONOMIC MODEL

18 The Potential Green Technology Services NKEA Business Services EPP4 Jump-starting a vibrant green technology industry Investment RM131.1b GNI RM7.2b Jobs 47,590

19 2010 BUDGET SPEECH

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21 GTFS Key Features FEATURES GT PRODUCER GT USER Financing size Maximum RM50.0 mil per company Maximum RM10.0 mil per company Financing tenure Up to 15 years Up to 10 years Purpose of financing Eligibility criteria Source of funds Participating financial institutions (PFIs) Interest/profit rate Government incentive Implementation agency To finance investments in production of green technologies that meet the Scheme objective Legally registered Malaysian-owned companies (at least 51%) in all economic sectors Participating financial institutions To finance investments in utilisation of green technologies that meet the Scheme objective Legally registered Malaysian-owned companies (at least 70%) in all economic sectors All commercial and Islamic Banks Development financial institutions (Bank Pembangunan, SME Bank, Agrobank, Bank Rakyat, EXIM & Bank and Bank Simpanan Nasional) Determined by participating financial institutions Government bears 2% interest rate/profit Government guarantee 60% of financing approved amount (1) Malaysian Green Technology Corporation (GreenTech Malaysia) (2) Credit Guarantee Corporation Malaysia Bhd. (CGC) 21

22 HOW TO APPLY GTFS?

23 GTFS PROJECT APPLICATIONS Energy Water & Waste Building Transport 20 0 Processed Certified Applications Evaluation Stage Rejected

24 Total Project Cost and GT Approved Cost for Certified Application as of 13 July 2012 Total GT Cost (RM) Total Project Cost (RM) Energy Waste & Water Building Transport Certified 0% 20% 40% 60% 80% 100%

25 Summary of Green Jobs Created and CO2 reduction for Certified Projects Green Jobs (persons) 44, 3%61, 4% 541, 37% 818, 56% Energy Waste & Water Building Transport CO2 Reduction (tco2e/yr) 3,139, , ,070, Energy Waste & Water Building Transport 2,992,358.71

26 Summary of Green Jobs Created and CO2 reduction for Loan Approved GTFS Projects ) Building, 7 Transport, 17 Waste & Water, 79 Energy, CO2 Reduction (tco2e/yr) Energy Waste & Water Building Transport

27 ENERGY PROJECTS Nature of projects Technology Transfer Local Expertise / Technology Employment Solar, Hydro, Biomass (from EFB and Shell) and Biogas (capture from POME) for Electricity and Heat Generation Led Lighting Design, Operation and Maintenance Control and optimization process Membrane dome and control system Biogas tank and hydraulic design 70% local technology 80% Non-Technical

28 ENERGY PROJECTS Nature of projects Technology Transfer Local Expertise / Technology Employment Solid waste empty fruit bunch into fuel pellets Starch-based 100% biodegradable resin to replace consumption of petroleum based resin and plastic Biodegradable Packaging Products Research facilities at foreign country (Biodegradable resin) Fuel pellets production 80% Non-Technical

29 WATER AND WASTE PROJECTS Nature of projects Technology Transfer Local Expertise / Technology Employment Treatment of Metal Oxides (toxic wastes), Wastewater treatment plant, Recycle Paper and Energy Efficiency in Pulp and Paper Industry, Equipment for save disposal of medical wastes Design and Manufacturing Technical management for modification and improvement of waste water technology Energy Efficiency approach Locally designed, fabricated and assembled environmental friendly equipment 80% Non-Technical

30 WATER AND WASTE PROJECTS Nature of projects Local Expertise / Technology Employment Equipment for save disposal of medical wastes Integrated waste management system to treat the spent solvent Conversion of plastic wastes to plastic pellets to replace pellets made from timber Recycled pesticides bottles and fertilizer bags Locally designed, fabricated and assembled environmental friendly equipment Technology developed and integrated locally 80% Non-Technical

31 BUILDING PROJECTS Nature of projects Local Expertise / Technology Employment Green Hospital (Energy Efficient, Water Efficient, Sustainable Site Planning and Management Incorporate green features into the building 43% Technical, 47% Non-Technical

32 TRANSPORT PROJECTS Nature of projects Local Expertise / Technology Employment Renewable alternative energy fuels using used cooking oil, WVO, yellow grease, waste vegetable oil, bulk vegetable oil, crude glycerin palm oil, sludge palm oil, and jatropha oil and waste crude palm oil. Industrialize the Application of (CNG) as the fuel into Diesel Converted Engine (and the total developed control engine management system Improved formulated energy biofuel technology 90% Non-Technical

33 Thank You Mohamed Azrin Mohamed Ali