Policies in Malaysia:
Malaysia: Biogen Project, Phase I
Biomass Grid-Connected Power Generation and Co-Generation (Biogen) Project aims to reduce the growth rate of greenhouse gas emissions from fossil fuel by promoting biomass-based power generation and combined heat & power generation system using wastes from palm oil mills. The project managed to provide key policy interventions where RE is further given emphasized for the 9th Malaysia Plan period. It has also demonstrated the need of a project financing facility by establishing the renewable energy business fund (REBF) where it can emulated by other financial institutions.
Date Implemented: 2003-2006
Status: Ended
Funding Information: UNDP-GEF project
References: http://www.undp.org.my/uploads/files/01.%20GEF4NationalDialogueProgrammeBook.pdf
Malaysia: Biogen Project, Phase II
Date Implemented: 2007-2009
Funding Information: UNDP-GEF project
References: http://www.undp.org.my/uploads/files/01.%20GEF4NationalDialogueProgrammeBook.pdf
Malaysia: Electricity Supply Act
This Act regulates the licensing of electricity generation, transmission and distribution. It enforces licensing and registration provisions.
Date Implemented: 1990
References: National Communication to the UNFCCC
Malaysia: Energy Efficiency and Renewable Energy (Ninth Malaysia Plan 2006-2010)
The Ninth Plan strengthens the initiatives for energy efficiency and renewable energy put forth in the Eighth Malaysia Plan that focused on better utilisation of energy resources. An emphasis to further reduce the dependency on petroleum provides for more efforts to integrate alternative fuels.
Date Implemented: 2006-2010
Status: In Force; Framework Policy
Malaysia: Energy efficiency guidelines
The Malaysian government negotiates with building contractors, manufacturers and suppliers to promote the use of energy efficient materials and equipment.
Date Implemented: 1989
Status: In Force; Mandatory
References: National Communication to the UNFCCC; ASEAN Center for Energy: Malaysia, Guidelines on Energy Efficiency in Buildings
Malaysia: Energy Policy in the 8th Malaysia Plan/Five Fuel Policy
The goals of the 8th Plan include a safe, cost-effective, secure energy supply which means promoting renewables, cogeneration, diversification, efficiency and using auditing, financial and fiscal incentives, technology development, and labelling. The 8th Plan includes several incentive mechanisms for the promotion of environmental measures and the use of renewables in the private sector. Companies that undertake forest plantation projects or energy conservation measures or use energy from renewable biomass, mini-hydro or solar are eligible for Pioneer Status with a tax exemption of 100% of the statutory income for 10 years; or Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within five years, which can be offset against 100% of the statutory income for each year of assessment. For the energy related measures, companies can also qualify for higher exemptions or allowances if the activities take place in ‘promoted areas’. Originally the four fuel diversification policy focused on oil, gas, coal and hydro. In the 8th plan, it was broadened to include renewables as a fifth in the new Five Fuel Strategy.
Date Implemented: 2001-2005
Status: Framework Policy
Targets: Renewable Energy was to make up 5% of the nation’s total energy consumption by 2005
References: Environmental Management, Malaysian Industrial Development Authority
Malaysia: Environmental Quality (Clean Air) Regulations
These Regulations set emission and effluent discharge limits. They limited emissions from motor vehicles except for motorcycles (which generally make up more than half of all registered motor vehicles in Malaysia)
Date Implemented: 1978
Status: In Force; Mandatory
References: National Communication to the UNFCCC
Malaysia: Environmental Quality (Open Burning)
This legislation bans open burning and enforces this ban upon penalty of a fine and/or prison time
Date Implemented: 2000
Status: In Force; Mandatory
References: National Communication to the UNFCCC
http://www.jas.sains.my/jas/sob/openburning.htm
Malaysia: Environmental Quality Act
This act provides for the prevention, abatement, and control of pollution through licensing, and mandates the conducting of an Environmental Assessment Report for proposed public and private sector projects to determine and prevent or prepare for the environmental consequences of the project. It was brought into effect with the implementation of a subsequent set of specific regulations and laws.
Date Implemented: 1974, ‘85 & ‘95
Status: In Force; Mandatory
References: National Communication to the UNFCCC;
http://www.rrcap.unep.org/country/cp/seasia/cp_malaysia.cfm
http://www.oilandgasforum.net/management/regula/malaysiaprof.htm
http://www.unescap.org/drpad/publication/integra/volume3/malaysia/3my03d...
Malaysia: Industrial Energy Efficiency Improvement Project
This program has been set up in eight manufacturing/ industrial sectors. The government is implementing demonstration projects for energy saving technologies and fiscal incentives for the manufacture of energy efficient industrial equipment. It is providing energy audits and engineering services, project financing, and training and information to plant managers and operators, and supervising the implementation and completion of projects and programs, ensuring the long term sustainability of the programs and activities with the appropriate deliverables and follow-up measures.
Date Implemented: 1999
Status: In Force
Funding Information: The project is jointly funded by the Government of Malaysia (US$6.3 million), the Global Environment Facility (US$7.3 million), the UNDP (US$300,000) and the Malaysian private sector (US$5.26 million)
Targets: The aim was to reduce GHG emissions in the industrial sector by 10% by 2004
References: Project website, http://www.ptm.org.my/mieeip/
"Education for Sustainable Development (ESD) in Malaysia," www.ias.unu.edu/binaries2/MalaysiaEducationReportAug2004.doc
Malaysia: MBIPV Project
The Malaysia Building Integrated Photovoltaic Technology Application (MBIPV) project promotes increased use of photovoltaic (PV) technology to tap solar energy and generate electricity for buildings. The project is expected to increase Malaysia’s installed BIPV capacity by about 330% (2MWp by 2010), and to lower the technology unit cost by some 20% than at present.
Date Implemented: 2005-2010
Status: In Force; Voluntary
Funding Information: UNDP-GEF project
References: http://www.undp.org.my/uploads/files/01.%20GEF4NationalDialogueProgrammeBook.pdf
Malaysia: Memorandum of understanding on new biomass technologies (China, Malaysia)
Plantation Industries and Commodities Minister Datuk Peter Chin said a study would be conducted to set out the scope of cooperation and the possible joint R&D projects relevant to biofuel and biomass technologies. The cooperation is prompted by China’s growing interest in securing supply of feedstock for its biofuel industry and Malaysia’s interest in the development of biofuel using oil seeds such as rapeseed as an alternative to palm oil.
Date Implemented: 2006
Status: In Force; Government Initiative
References: http://biz.thestar.com.my/news/story.asp?file=/2006/8/31/business/152892...
Malaysia: MIEEIP Project
Project aims to reduce carbon dioxide (CO2) emissions from fuel combustion from manufacturing
industries in Malaysia, which accounts for about a quarter of total, by promoting efficient and rational energy use and removing barriers. Since inception, 50 factories audited, 5 demonstration projects have been commissioned and more than a thousand industry professionals have benefited from the project.
Date Implemented: 2000-2006
Status: Ended
Funding Information: UNDP-GEF project
References: http://www.undp.org.my/uploads/files/01.%20GEF4NationalDialogueProgrammeBook.pdf
Malaysia: National Biofuel Policy
Implementation of the National Biofuel Policy will be spearheaded by the Minister of Plantation Industries and Commodities. Towards this end, specific legislation on biofuels will be enacted. This initiative is in line with nation’s Five-Fuel Diversification Policy, a national policy to promote renewable energy (RE) as the fifth fuel along with fossil fuels and hydropower. As a start, the Government is promoting a 5%-mix of processed palm oil with petroleum diesel (B5 diesel) by applying to a fleet of government vehicles on a trial
basis and by establishing B5 diesel pumps at selected stations. The standard for the biodiesel is being developed and a new legislation to mandate the use of B5 diesel will be tabled in Parliament. Government stopped issuing new licensing as of July 2006 – and the total capacity has reached 3,000,000 tons/year, which is six times larger than the projected biodiesel demand for the domestic transportation sector. In terms of promotion of RE and energy efficiency in general, the Government provides various tax incentives for new investments, such as 100% tax exemption for pioneer status business models for a 10-year period and 60% tax allowance on capital expenditure for improving energy conservation. The Government also announced that all Government agencies will be required to target a 10% savings in energy consumption for 2006, which will provide another incentive for energy savings.
Date Implemented: 2006
Status: In Force; Framework Policy
References: http://www.palmoil.com/index.php?q=D1VTW1tASgIEAhEbVg9RAgsIBw==
Malaysia: National Energy Policy
The main objectives of the National Energy Policy include the safe and cost-effective provision of quality energy to the population, the promotion of efficient energy consumption practices and ensuring that the appropriate provisions are taken to protect the environment. The strategies employed involve diversification of fuel type and sources, developing technology, maximize use of indigenous energy resources, competition and appropriate pricing in the industry, bench marking, auditing, financial and fiscal incentives, technology development, and labeling.
Status: In Force; Mandatory
References: Economic Planning Unit of the Prime Minister’s Department
http://www.epu.jpm.my/New%20Folder/development%20policies/cont%20key%20policies/energypolicies.htm
Malaysia: National Forestry Policy
This Act designates Permanent Forest Reserves (PFR) for climate and ecology protection, regeneration and rehabilitation, research and sustainable harvesting
Date Implemented: 1978, revised 1993
Status: In Force; Mandatory
Targets: Each state should maintain 47% of land area as forest reserves, long term goal: 50%
References: National Communication to the UNFCCC; http://www.adb.org/Documents/Events/2003/RegWorkshopForestsClimateChange/Malaysia-paper.pdf; http://sea.unep-wcmc.org/index.html?http://sea.unep-wcmc.org/sites/pa/co...
Malaysia: National Policy on the Environment
The aim of this policy is to lead Malaysia in developing its economy and exploiting its natural resources in a sustainable fashion, with the participation of all sectors of society in the conservation efforts
Status: In Force; Framework Policy
References: National Communication to the UNFCCC; Department of Environment, National Policy
http://www.jas.sains.my/jas/NPOTE/content_intro.htm
Malaysia: New legislation to mandate the use of B5 diesel
The standard for the biodiesel is being developed and a new legislation to mandate the use of B5 diesel will be tabled in Parliament as soon as this year. The Government is promoting a 5%-mix of processed palm oil with petroleum diesel (B5 diesel) by applying to a fleet of government vehicles on a trial basis and by establishing B5 diesel pumps at selected stations.
Status: Mandatory
References: http://biz.thestar.com.my/
Malaysia: Road Transport Act
This Act regulates the roads of Malaysia and their use (from speed limits to motor insurance, etc.). In terms of climate provisions, it also regulates vehicle emissions/exhaust.
Date Implemented: 1987
Status: In Force; Mandatory
References: National Communication to the UNFCCC
Malaysia: Small and Renewable Energy Program (SREP)
This program aims to intensify the development of renewable energy as the ‘fifth fuel’ in electricity generation. Under this program, small power generations plants (10 MW and below) that use renewable sources can apply to sell electricity to two of the three main utilities, Tenaga Nasional Berhad (TNB) and Sabah Electricity Sdn.Bhd (SESB), through the distribution grid system.
Date Implemented: 2001
Status: In Force; Voluntary
References: http://www.st.gov.my/
Malaysia: Third Outline Perspective Plan
No details available
Date Implemented: 2001-2010
Status: In Force
Malaysia: Vision 2020
The plan to achieve the government’s objective of becoming a developed nation by 2020 and sustaining a 7% annual growth rate and restructuring the manufacturing sector involves primarily securing the proper infrastructure and framework for the private sector to flourish. The government aims to maintain its policies of deregulation and liberalization, its efforts to attract FDI and its emphasis on education and investment in human capital. These efforts will lead to stronger local enterprises and the development of indigenous technologies. The government will only provide the appropriate assistance schemes" to raise the level of management expertise, technological know-how and skills” and ensuring “healthy fiscal and monetary management.” The environment is mentioned as a priority, and appropriate measure will be taken to protect it, as the government acknowledges that development is only meaningful for the long term future of the country if it is sustainable.
Date Implemented: 1991
Status: In Force; Framework Policy
References: National Communication to the UNFCCC
http://www.pmo.gov.my/website/webdb.nsf/0ab9c2ac2974c86e48256bbc001c6650/7ad5d804a3df90cd48256e840035808e?OpenDocument