Effective green technology policies implementation: An Industry Player's perspective

By

ZAINI ABDUL WAHAB

SDN BHD

19th June 2013 RENAISSANCE HOTEL, KUALA LUMPUR

4th ANNUAL GREENTECH ASIA

Definitions & key sectors

Global green outlooks & potentials

Green policies & incentives in Malaysia

Green business potentials

Green Technology In ETP

Common barriers

Strategic actions needed & the way forward

The conclusion

●The development and application of

products, equipment and systems used

to conserve the natural environment and

resources, which minimises and reduces

the negative impact of human activities

•Products and services that reduce energy

consumption and minimise pollution

TRANSPORTATION INDUSTRIAL BUILDINGS EQUIPMENT &

APPLIANCES

WASTE

MANAGEMENT

WATER

MANAGEMENT

Source: IPCC (2007)

Delivering energy requires a long-term commitment to investment and technology

Vehicle efficiency: Costs influence consumer choices

TRANSPORTATION

Manufacturing, chemicals to lead growth in industrial energy demand

INDUSTRIAL

Industrial demand rises 30 %, led by growth in Non OECD countries

ELECTRICITY GENERATION The impact of increased energy consumption can be reduced through energy efficiency and a transition to a stronger reliance on cleaner sources of energy, including renewable energy and low-GHG [greenhouse gas] emitting fossil fuel technologies, such as a shift from coal to natural gas

The global energy mix will grow more diverse and less carbon-intensive

Source: Exxon Energy outlook 2012

Energy supplies evolve over time Oil, gas & coal will continue to account for about

80 % of the world’s energy demand

Advances in technology will be necessary to make these fuels more practical and economic, increasing

Source: Exxon Energy outlook 2012

Source: IEA

Oil and natural gas remain essential through 2030 but the most important “fuel” of all will be energy saved through improved efficiency

Potential gains will reach about 300 quadrillions BTUs per year by 2030(twice the growth of global energy demand through 2030)

Gains in energy efficiency

through 2030 will reduce global energy-demand growth by approximately 65%

Source: Outlook for Energy. A view to 2030 (exxonmobil.com)

National Petroleum

Policy (1975)

National Energy

Policy(1979)

The Four

Fuel/Diversification

Policy (1981)

The Five Fuel Policy

(2000) Green Technology

Policy(2009)

Renewable Energy

Policy(2010)

National Energy

Efficiency Policy???

Supply, utilization & environmental

objectives

With national policy targets ,RE Act, Feed-in Tariff,

SEDA

Less dependence on one fuel source

Utilizing renewable energy

sources Green Technology Fund Scheme, GreenTech Malaysia,

40% CO2 emission intensity reduction by 2020 at COP 15

Introduction of ETP with RE & EE in EPPs

●EE Fiscal Incentives ●RE Fiscal Incentives

●Green Technology

Funding Schemes

●Feed-in Tariff for RE

electricity generation

●Loans for FiAHs

●GBI Certified Fiscal

Incentives for buildings

GreenTech Malaysia, Credit Guarantee

Corporation, Banks

Energy Commission,

MIDA MIDA

SEDA, Energy Commission,

TNB, Banks

GBI Sdn Bhd, Inland Revenue Board

Business friendly?

Source: Bloomberg New Energy Finance, UNEP

Increasing trends and still moving up...

source: www.reexasia.com

Subsidized energy price increases time of return from investments

Potentials still very much untapped!

Included in ETP targets launched in 2010

Towards sustainable & knowledge based economic activities

New source of economic growth to attract investments from private sectors

Positive regional and global commitment image & recognitions

Through coordinated efforts to jump-start a vibrant green technology industry in Malaysia, we can generate RM7.2 billion of additional GNI in 2020 and create over 47,000 jobs

Driven primarily by growth in revenue from renewable energy service providers

Require professionals, skilled and semi-skilled workers

Energy management firms

•Energy auditing

•Energy performance contracting

Water management firms

•Water auditing

•Advise on in-house water recycling & related services

Sustainable design services

•Retrofit buildings to be green

Waste management firms

•Expertise on waste strategies

RE service providers

•Consultancy for RE projects

•Feasibility studies & technical expert services

Source: PEMANDU

Centralised solar power reaches cost parity with gas between 2015 and 2020,

The overall GNI contribution from solar power generation in 2020 could grow to RM460 million

Mainly due to the creation of an additional 1,900 jobs

Require an investment of RM5.7 billion

GNI impacts excludes additional impact of RM22 billion catalysing effect that this project would have on local manufacturing & the influx of foreign direct investment under the electronics and electrical NKEA

Main barriers in mainstreaming green industry in Malaysia

•Clear policy & targets

•Comprehensive regulatory &

implementation framework

•Competencies in institutional set up

Strong governance in policies

implementation

•Competency programs

•Career opportunities

Technical competencies & human

resource capacity

•Sources of funds

•Understanding risks &

mitigating factors in green

investments

Sustainable financing & business

friendly mechanisms

•On green practices

•Business opportunities

•Impacts to climate change

mitigation

Information ,education &awareness

•Funding

•Academic vs. Commercial values R&D & commercialization

1,327

1,273

1,192

1,101 1,101

1,059 1,059

1,000978

951

1,036

1,013

1,013

985

1,049

1,091

1,051

1,0701,077

1,037

1,0441,021

1,059

1,036

1,038

1,050

1,131

1,142

1,345

1,405

1,467

1,566

1,573

1,438

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

'73

'75

'77

'79

'81

'83

'85

'87

'89

'91

'93

'95

'97

'99

'01

'03

'05

Fiscal Year

Pri

ma

ry e

ne

rgy

co

ns

um

pti

on

/ G

DP

Ton oil eq. / Billion yen

2nd Oil Crisis

1st Oil Crisis

Source: METI/General Energy Statistics

10 years

Improvement by 30%

10% improved for 20 years

Main Improvements: •Energy Management •Energy Efficient Equip. •Efficient Process Tech. •R&D

A voluntary network of companies since 1995- Large Industry Energy Network (LIEN) and is facilitated by Sustainable Energy Authority of Ireland(SEAI).

160 companies - 60% of Ireland’s industrial energy use, are improving their energy performance by 2% per year

Long-term members - have improved energy performance by 33% between 1995 and 2010.

2010- 45 companies across 65 sites were formally certified to EN 16001-these companies are currently implementing the new ISO 50001 standard.

The SEAI Energy Agreements Programme, a subset of the LIEN -centred on commitment to ISO 50001 implementation.

In 5 years after the introduction of the IS 393 standard-up to €150m in avoided energy costs achieved through a wide range of energy efficiency measures.

Through strong regulatory implementation framework, sustainable funding & holistic approached for focused sectors

ENABLERS

INSTITUTIONAL SET UP

FOR IMPLEMENTATION

(One Stop Centre)

OVERALL ACCOUNTABILITY

(Performance Measurement)

•Regulatory •Strategic action plan •Sustainable Funding

On-going collaboration with industry

players, NGOs &

consumers

Support Measures •Technical assistance for users & bankers •Fiscal incentives

Inclusive approach

Technical Assistance

& Advisory Incentives & Financial

Assistance

SMEs & SMIs – technical assessment & guidance

Measurement and verification of performance

Technical assessment from other ministries/agencies on green projects for financing /further approval

Registration and deployment of experts

Fiscal incentives

Low interest loans with government guarantee

Grant based on annual government budget for specified initiatives & awareness programs

•ISO50001,ISO14001

SUSTAINABLE ENERGY

Energy Supplies& Utilization

Green Building & Facilities

Green Technologies & Applications

Green Ratings & Standards

•Renewable Energy

•Total Energy Management & Energy Conservation Solutions

•Green Buildings

(existing & new)

•EE facilities equipment

•Green products

• EE equipment

•Smart energy resources measurement, control monitoring & performance measurement system

•Low Carbon City Framework

•International Green City Index

•Green Building Index

Solar(BIPV)

Biomass

biogas

Low/”Zero” Energy buildings

EE appliances

Green/EE Labeled

Computerized & wireless system

Solution or technology based approaches?

or

Project based or sustainable implementation plans & strategies?

Clear policy goals & targets

Strong governance & comprehensive framework

Consistency, accountability & competency

Inclusiveness in policies development & reviews

Strong

Governance

Financing &

business

friendly

mechanisms

Accountable &

competent

implementing

agency

Information,

Education

& Awareness

R&D &

Commercialization

Green Technology Industry Growth

Policy Targets

Policy Introduction

Focused Sectors +Industry Players + Consumers

Industry players just need the basic & right “infrastructure” …we can take it from there!

INTRODUCTION

&

AWARENESS

IMPLEMENTATION

& SUPPORT

MEASURES

PERFORMANCE

MONITORING&

MEASUREMENT

IMPROVED •Energy

Performance •Competitiveness

/profits •Environmental

quality

REDUCED •Energy

consumption & costs

•Pollution •CO2 emissions

CREATED •Business & job opportunities

•More experts/workers from green industry •New source of economic growth & Direct

Domestic Investments

zaini@cnsgroup.com.my 019 2152700

www.cnsgroup.com.my

THANK YOU!

Sustainable Energy Management System Consultant & Total Energy Conservation Solutions Provider