Tech scrutiny in green projects
By Susan TamTHE Natural Resources and Environment Ministry will set up a clearing house to examine the technologies transferred here in green projects, to prevent the country from receiving “redundant” know-how.
"We do not want to receive technology that is old and redundant or that will become a liability," says Deputy Minister Datuk S. Sothinathan.
Presently, there are no regulations to control incoming technology or expertise. The clearing house will function like an information centre to fill the gap.
Sothinathan says the facility is crucial for vetting these technologies as the country is expecting more carbon emission reduction projects funded by developed countries under the Clean Development Mechanism (CDM).
Provided for under the Kyoto Protocol, the CDM allows developed countries to invest in emission reduction projects in developing countries. They will then claim carbon credits from these projects as part of their Protocol commitments to cut down emission. CDM projects cover a wide range of fields such as transportation, waste management, forestry and energy. These initiatives must lessen GHG emissions by using cleaner technology or renewable energy sources.
“The CDM is about benefiting both parties. The developed countries can stick to their commitments and developing countries can learn new ways of ensuring a clean environment,” says Soninathan.
The transfer of technology includes expertise, new agricultural methods and improved seedlings for better yields.
Malaysian Energy Centre chief executive officer Dr Anuar Abdul Rahman says the 12 CDM projects started so far have generated carbon credits of 1 million tonnes through activities like tapping energy from landfills and biomass waste. They were mostly initiated by companies from Japan and Denmark.
Critics to the CDM argue, however, that countries causing high greenhouse gas emissions will take on these projects and shirk their own responsibilities. Local environmentalists say Malaysia should not focus on CDM projects and instead use the country’s own resources to conduct green initiatives.
“Let us examine our energy consumption and emission contributions from the transport sector and start our own initiatives,” says Centre for Environment, Technology and Development Malaysia (Cetdem) executive director Gurmit Singh. The transport sector contributes 60% of the country’s annual emissions of 89 million tonnes.
Instead of relying on foreign financing, he says Malaysia should set up a local fund or loan facilities to aid local developers carry out these projects.
Sothinathan brushes the critics aside, saying that CDM projects will help clean up local industries, promote energy efficiency and promote the use of alternative energy sources. “However, the projects must be viable for the local companies and this is where industrialised nations must provide the incentives.”
Anuar reveals that the government may do a study on whether authorities should keep 20% to 30% of carbon credits generated from CDM projects, instead of selling them all to the foreign funder. This will certainly protect local interests.
Meanwhile, sources say authorities are considering capping the price of carbon credits at US$5 (RM19) per tonne to protect local companies from losing out to investors keen to purchase cheap carbon credits.
Presently, Malaysia allows an open market for local developers to negotiate transactions without government interference. World Bank studies indicate that credit prices per tonne fluctuate from US$0.60 (RM2.28) to US$3 (RM11.40), depending on market demand and supply.
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