Greening the Economy

The article written by the Secretary-General of the Ministry of Energy, Green Technology and Water which appeared in the Star on Saturday November 27, 2010:  Gearing Towards a Green Malaysia is posted for future reference.


Towards a green nation and economy

AT YOUR SERVICE


By DATUK LOO TOOK GEE

Secretary-General Energy, Green Technology and Water Ministry

In the pursuit of sustainable development, policymakers must find a way to strike a balance between economic efficiency and environmental protection.

THE global community is confronted with challenges related to the environment and climate change. As a result, many countries are promoting sustainable development by investing in green technology in the form of cleaner low-carbon transport and energy systems, “smart” electricity grids, energy efficiency, renewable energy as well as in green research and development.

Green technology signifies a global paradigm shift in which economic aspiration combines with resource productivity and conservation to spearhead sustainable development.

Under a Cabinet reshuffle in April 2009, the Energy, Green Technology and Water Ministry (Kettha) was given the mandate to promote sustainable development through the adoption of green technologies in the various economic sectors of the country.
In pushing for a low-carbon economy, the Government launched the National Green Technology Policy on July 24, 2009, which serves as the basis for all Malaysians to enjoy an improved quality of life, by ensuring that the objectives of our national development policies will continue to be balanced with environmental considerations.

The Government also hopes to create a new avenue of growth for the country from green technology, in line with the New Economic Model that was unveiled recently.

The country’s vision for a low-carbon growth trajectory will be driven by four main pillars – energy, economy, environment and society.

To strengthen the platform for our green agenda, the National Green Technology Council was established to spearhead green technology application in the country. This council is chaired by Prime Minister Datuk Seri Najib Tun Razak and supported by a steering committee and five working groups on industry, research and innovation, human capital, promotion and public awareness and transportation.

The Green Technology Policy also outlines five strategic thrusts towards implementing green technologies in the country (for details, go to http://www.kettha.gov.my/).

In the transition to a low-carbon economy, the key issue for our policymakers is how to strike a balance between economic efficiency and environmental protection as the driver for economic growth and environmental sustainability. This needs to take into consideration the importance of promoting the notion of the environment and eco-efficiency as a business opportunity, rather than a cost item.

The following are examples of the initiatives undertaken by the ministry to address the challenges of climate change and reduce our carbon footprint:

Energy efficiency

The Malaysian Industrial Energy Efficiency Improvement Programme represents one of the main efforts undertaken to improve energy efficiency in the industrial sector. Since 2001, fiscal incentives had been introduced by the Government to promote efficient use of energy such as pioneer status, investment tax allowance, duty import exemption and sales tax exemption.
The ministry was now in the midst of finalising the Energy Efficiency Master Plan with clear goals and targets in the industrial, building and residential sectors, so as to coordinate and implement energy efficiency and conservation programmes in a systematic and holistic manner.

Renewable energy

The Government approved the Renewable Energy Policy and Action Plan in April 2010. This policy is aimed at promoting long-term sustainability by reducing our dependence on fossil fuels for electricity generation and at the same time stimulate a new growth industry for the country.

To encourage renewable energy generation in the country, the Government will be implementing the Feed-in Tariff Mechanism which allows electricity produced from such sources like biomass, biogas, mini-hydro and solar to be sold to power utilities at a fixed premium price and for a specific duration.

Green buildings

The Green Building Index (GBI) is a rating tool to grade environment-friendly buildings and the Government is providing fiscal incentives to buildings which are GBI-certified.Owners of GBI-certified buildings are entitled to income tax exemptions, equivalent to the additional capital expenditure, to green their building. Buyers of green buildings from developers will also be exempted from stamp duty equivalent to the additional cost incurred to green their building.

Sustainable transport

To facilitate the use of electric vehicles (EV) in the country, the Government is in the process of preparing the EV Infrastructure Roadmap, which includes a fleet test programme for electric vehicles. The implementation of this fleet test will be the benchmark in developing a strategic plan and framework as well as identification of entities that will benefit the electric vehicle industry, in areas of services and new business opportunities.

Green Technology Roadmap

Under the Green Technology Roadmap, a baseline study is currently being conducted to ascertain the overall green technology applications in six sectors, namely, energy, transport, building, water and waste management, manufacturing industries and ICT applications.

Green Technology Financing Scheme

A RM1.5bil soft loan scheme called the Green Technology Financing Scheme (GTFS) was launched by the Government early this year to encourage the participation of companies and entrepreneurs in green technology. The Government bears 2% of the interest rate charged and provides a guarantee of 60% on the financing amount, with the remaining 40% being taken by banking institutions.

Green townships in Putrajaya and Cyberjaya

The ministry, together with the Malaysian Green Technology Corporation (MGTC), is developing a green township framework, a green township rating system based on the Common Carbon Metric (CCM) and carbon footprint baseline as well as conducting a study on a 10% saving in energy and water usage in all government buildings in Putrajaya. It is hoped that the developed framework and rating system will benefit other townships in the country where they can use both the framework and rating system as a guide to develop their own green townships.

Eco-labelling

The Government is working with the Standards and Industrial Research Institute Malaysia (SIRIM) towards developing standards, certification and labelling mechanisms, including green procurement manuals and procedures, to enable the Government and private sectors to embark on green purchasing which will be internationally recognised. The Ministry is also working with the Finance Ministry in formulating a Green Procurement Policy to encourage green procurement to be implemented in government agencies.

Human capital development 

The Government is also facilitating the development of Occupational Analysis (OA) and National Competency Standards (NCS) as well as National Occupational Skills Standards (NOSS) for green collar jobs.
The objective of this initiative is to develop a hghly-skilled workforce to meet future demands in the area of green technology.
In conclusion, the transformation of Malaysia's economy to a low- carbon economy can be viewed as a strategic move to promote green technology as an engine of growth, drive innovation and create employment in the country. Green Growth is where our future lies.

WE WAIT AND SEE!

Green Technology as an Engine of Growth

The Prime Minister announces that green technology will be another engine of growth.This is good news as without incentives it is very difficult to venture into this field.

I must put this article on record to monitor the progress of incentives to be proposed for the private sector by the Malaysian government. Click this link for details

Solar Air conditioners

One does no longer need to feel guilty using air conditioners to cool down during hot weather spells now that a local company has come out with a solar cooling air conditioners.

RACHAEL KAM's article in the Business section of Saturday Star is welcome news for people seeking to save on their electricity bills.

It was reported that Solar District Cooling Sdn Bhd (SDC) – has introduced an environmental-friendly and cost-saving solar cooling system.

Established six months ago, the company is eyeing Cyberjaya as its first location to build a solar district cooling plant to power the air-conditioners at the corporate offices and residential homes in the area.

SDC managing director Chan Jian Wen says the company spent about a year on research and development to come out with the system.

After Cyberjaya, the company is targeting hospitals, district councils, airports as well as the Iskandar region in Johor Baru to introduce the solar cooling system.

It is believed that SDC is the first company in Malaysia involved in the solar air-conditioner system business.

The new solar cooling system is initially targeted at corporate clients with roof top space. Next will housing developers.

It is reported that the absorption chiller being used in the solar cooling system only needs about 5% of the energy required for a normal chiller. A lot of electricity is saved by using the solar cooling system. As 60% of a normal office and home electricity consumption goes to air conditioning, the savings would be very substantial.

As I have commented in earlier posts, it only needs the public sector to show the way. Once the government accepts and uses solar technology on a large scale, the private sector will follow siut. Demand is thus created and the technology will be cheaper based on economies of scale.

I just hope that the SDC's technology really works. The future will be so much better for all of us if it does.

Green Technology

Now that Malaysia has a Ministry in charge of Green Technology, we need to understand what Green Technology is.

Wikipedia defines Green Technology as similar to Environment Technology or Clean Technology. This technology advocates sustainable development. As I have pointed before, the keyword to anything nowadays is sustainability. Sustainability involves the ability to maintain our natural resources so that they last forever, theoretically.

Sustainability is defined as the ability to meet the needs of society in ways that can continue indefinitely into the future without damaging or depleting natural resources. In short, present needs are satisfied without compromising the ability of our children’s generations to meet their own needs.

Activities that can promote sustainability are:

Recycling

Water Purification

Sewage Treatment

Environmental Remediation

Effluent Gas Treatment

Solid Waste Management

Renewable energy

Basically we need technologies that conserve energy or change consumption patterns to help reduce consumption as well as reduce the amount of waste produced by human activities.

Renewable energy sources include wind energy and solar energy which are also clean, i.e. they do not pollute the atmosphere like coal and petroleum do.Renewable energy can also be harnessed from the waste generated from agricultural activities. This is also called biomass energy. Developed nations like Japan and Scandinavia are currently keen to help the Malaysian and Indonesian palm oil industry adopt the Clean Development Mechanism by converting the palm oil waste to biogas and compost. CDM activities provide additional sources of income for palm oil millers. The solid (empty fruit bunches) and liquid waste (effluent) both of which could be efficiently processed could lead to a sustainable development of various CDM projects in the mill.

Composting enables palm mills to achieve zero waste management as both the Empty Fruit Bunches (EFB) and Palm Oil Mill Effluent (POME) are converted to useful income generating by-products. The resulting organic compost could one day prove to be a more environment friendly and effective substitute to petroleum based fertilizer in the plantations.

Converting Biomass to energy is another green technology.In countries like India, the biogas is utilized as cooking gas.

Thus Green Technology also include:

Energy from alternative fuels

The urgent development of alternative fuels, is needed as a new means of generating energy and energy efficiency.

A substantial reduction of greenhouse gases is also possible, by using unleaded gasoline, biodiesel, solar energy, and alternative fuel vehicles, including plug-in hybrid and hybrid electric vehicles.

Green building

Green building encompasses everything from the choice of building materials, energy conservation, and to the location of the building.

Environmentally preferred purchasing

The government should also encourage innovation that involves the search for products with contents and methods of production that have the smallest negative impact on the environment, and should, by regulation be preferred in use for government projects.

Green chemistry

All invention, design and application of chemical products and processes must reduce or eliminate the use and generation of hazardous substances that is not environment friendly.

Green nanotechnology

Nanotechnology involves the manipulation of materials at the scale of the nanometer, one billionth of a meter. The adoption of nanotechnology will transform the way that everything in the world is manufactured.

“Green nanotechnology” is the application of green chemistry and green engineering principles to this field.