Presentation on theme: "TRANFORMATIONINNOVATIONPARTNERSHIP Green Productivity and LCA in Malaysia."— Presentation transcript:
TRANFORMATIONINNOVATIONPARTNERSHIP Green Productivity and LCA in Malaysia
TRANFORMATIONINNOVATIONPARTNERSHIP Current State of LCA In spite of the rapid development and certification to ISO14001, LCA has yet to gain wide spread interest in Malaysia. Governmental systematic support to date is confined to international standardisation activities under ISO/TC 207. Some universities, research institutions and leading LCA researchers have carried out case studies.
TRANFORMATIONINNOVATIONPARTNERSHIP Current State of the Environment Increased incidences of hotter temperatures, severe storms, drought, fires Climate change has taken centre stage and is one of the most challenging environmental challenges confronting the global community Global average temperatures are expected to rise between 1° to 6° Celcius by end of century as projected by the Inter-Governmental Panel on Climate Change (IPCC) Effects are grave and could threaten lives, industries, jobs,sustainable agriculture productions, water supplies and survival of all
TRANFORMATIONINNOVATIONPARTNERSHIP Global Environmental Agendas Dates back to 1970s and 1980s Adoption of Agenda 21 by 170 nations at the UN Conference on Environment and Development in 1992 – a comprehensive action plan for sustainable development International community responded with over 1,200 multilateral and bilateral treaties and agreements Landmark conventions to address issues of climate change and sustainable development – Basel Convention on Transboundary Movement of Hazardous Wastes; – Montreal Protocol on Use and Disposal of Ozone-Depleting Substances; and – Climate Change Convention Malaysia a signatory to all three landmark treaties Environmental issues and natural resource management - Ministry of Natural Resources and Environment (NRE). National Physical Plan (NPP) 2005-2010 - to enhance integrated land use planning, National Biodiversity-Biotechnology Council (NBBC) - conservation and sustainable utilisation of biological resources. December 2004 Asian Tsunami- increased focus on the conservation and rehabilitation of coastal natural resources, especially mangrove forests More attention is being put on linking land management and planning with climate change.
TRANFORMATIONINNOVATIONPARTNERSHIP Global Initiatives in Promoting Green Practices Developed countries have put into place regulations and requirements in promoting use of environmentally friendly practices and eco-products Requirements becoming increasingly onerous but ensures market acceptance of products Examples of global regulations and requirements: – EUs Restriction of Use of Hazardous Substances (RoHS) – EUs directive on Waste Electrical and Electronic Equipment (WEEE) – Chinas RoHS – requires laboratory testing and labeling requirements – USs Resource Conservation Programme – Japans Basic Policy on Promoting Green Purchasing
TRANFORMATIONINNOVATIONPARTNERSHIP Input - Throughput - Output INPUT Water, Energy THROUGHPUT OUTPUT Product Waste GP GP l Recovery, Reuse, Reduction l Greening the Supply Chain l Recovery, Reuse, Reduction l Greening the Supply Chain Doing More With Less l Efficient resource utilization and efficiency improvement l Efficient utilization of people l Efficient production process Efficient resource utilization and efficiency improvement Efficient utilization of people Efficient production process l Waste management through EOP l Waste management through EOP Doing More With Less GREEN PRODUCTIVITY COVERAGE
TRANFORMATIONINNOVATIONPARTNERSHIP Malaysias Initiatives in Sustainable Practices Balanced environmental conservation with economic development Environmental Quality Act 1974 7th Malaysia Plan (1996 – 2000) – protect the environment and ecology so as to maintain the long term sustainability of the countrys development 8th Malaysia Plan (2001-2005) – promoting the supply and demand for green products and services 9th Malaysia Plan (2006-2010) – balanced environmental preservation to ensure sustainable development 10th MALAYSIA Plan (2011- 2015) – Green Technology Policy - provide direction and motivation for Malaysians to continuously enjoy good quality living and a healthy environment. RM 1.5 billion is provided to promote Green Technology
TRANFORMATIONINNOVATIONPARTNERSHIP Malaysias Initiatives in Sustainable Practices – Waste Management Enactment of the National Solid Wastes and Public Cleansing Management Act 2007 Promoting 4Rs (Reduce, Reuse, Recover and Recycle) Reversing the current waste hierarchy
TRANFORMATIONINNOVATIONPARTNERSHIP Malaysias Initiatives in Sustainable Practices – Air Quality Environmental Quality (Clean Air) Regulations being amended to include more stringent controls and parameters Environmental Quality (Control of Petrol and Diesel Properties Regulations) 2007 was introduced to provide for the adoption of EURO 2M specifications Prohibition of open burning – plantations encouraged to compost felled trees and crops in preparation of land for replanting
TRANFORMATIONINNOVATIONPARTNERSHIP Malaysias Initiatives in Sustainable Practices – Renewable Energy and Energy Efficiency Development of solar, hydrogen and fuel cells – roadmap was formulated To promote the wider application and utilisation of photovoltaic technology in buildings, the Malaysia Building Integrated Photovoltaic Technology Application Project (MBIPV) was launched New guidelines for energy efficient designs forgovernment buildings were formulated Energy audit were undertaken in eight energy-intensive industries to identify potential energy savings
TRANFORMATIONINNOVATIONPARTNERSHIP Malaysias Initiatives in Sustainable Practices – Forest Management Timber used in manufacture of wood products meet requirements of Malaysian Timber Certification Scheme inline with Forest Stewardship Council (FSC) Certification Ensure balance between environmental preservation and economic benefits
TRANFORMATIONINNOVATIONPARTNERSHIP Malaysias Initiatives in Sustainable Practices – Ozone Layer Phase out of Chlorofluorocarbons (CFCs) by 2010 in line with the requirements of the Montreal Protocol Working towards the phase out plan of the CFC alternative –Hydrochlorofluorocarbons (HCFCs) by 2030
TRANFORMATIONINNOVATIONPARTNERSHIP MALAYSIAS INITIATIVES IN SUSTAINABLE PRACTICES – MANUFACTURING Use of deproteinised natural rubber in the manufacture of rubber gloves to comply with international standards Application of engineering and use of advanced materials to manufacture biodegradable plastic products Eco-labelling scheme launched by SIRIM Berhad in 2004
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco-Products and Green Supply Chains in Malaysia Inevitable for government and businesses to consider environmental criteria in their organisational purchasing decisions and long-term relations with suppliers Consumers have also changed purchasing patterns for more eco-friendly products Government provides a range of fiscal incentives including Pioneer Status tax exemption and Investment Tax Allowance for both manufacture of environment friendly products and provision and supply of environment friendly services.
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco- Products and Green Supply Chains in Malaysia Pioneer Status (PS) or Investment Tax Allowance (ITA) for companies that provide energy conservation services ITA and import duty or sales tax exemption for energy conservation and generating energy from renewable sources for own consumption PS or ITA and import duty or sales tax exemptions for companies generating energy from renewable sources. Exemptions also extended to solar photovoltaic equipment and solar heating equipment. Tax exemption on income derived from the sale of Certified Emission Reductions
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco-Products and Green Supply Chains in Malaysia In promoting use of natural gas for vehicles: Import duty and sales tax exemptions on kits and components for conversion of vehicles to utilise natural gas Reduced road tax from between 25% and 50% for monogas, bi-fuel and dual- fuel vehicles Accelerated Capital Allowance for installation of equipment related to supply of natural gas at petrol stations Import duty exemptions for local vehicle assembler and manufacturers on replacement of diesel engines or chassis fitted with engines for NGV monogas buses and motor vehicles for transportation of goods.
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco-Products and Green Supply Chains in Malaysia Exemption of import duty (100%) and excise duty (50%) for franchise holders on new CBU hybrid cars as an incentive to promote Malaysia as a regional hub for hybrid cars. PS or ITA for undertaking forest plantation projects
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco-Products and Green Supply Chains in Malaysia PS or ITA for setting up of facilities for storage, treatment and disposal of toxic and hazardous wastes in an integrated manner and waste recycling activities of agricultural wastes or by-products, recycling of chemicals and production of reconstituted wood based panel boards or other products of high value-added and use high technology. Accelerated Capital Allowance for companies using environmental protection equipment to establish facilities to store, treat and dispose wastes either on-site or off-site and undertake recycling activities
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco-Products and Green Supply Chains in Malaysia Import duty exemptions for companies using energy efficient equipment such as high efficiency motor and insulation materials Sales tax exemptions for purchasing locally manufactured energy efficient goods such as refrigerators, air conditioners, lightings, fans and televisions.
TRANFORMATIONINNOVATIONPARTNERSHIP Incentives to Encourage Eco- Products and Green Supply Chains in Malaysia Industry Restructuring Guarantee Loan Scheme of a maximum loan of RM50 million for the use of green technology Tax incentives for companies generating energy biomass that is renewable and environment friendly
TRANFORMATIONINNOVATIONPARTNERSHIP The Way Forward Initiatives and incentives are plenty but there needs to be a push factor. Public sector is the prime catalyst as the single largest buyer of products and services. Government green purchasing policies can have a more direct effect than other environmental pressures. Consumers also have a direct impact in pushing forward the production of eco-products and greening of a companies supply chain. Companies need to react positively to make changes to satisfy and retain their customers.
TRANFORMATIONINNOVATIONPARTNERSHIP The Way Forward Competition from others in the industry Companies need to standout from others with what they have to offer to remain competitive Pressure from competitors could also move a company to adopt greener practices Likewise, being the first amongst competitors to go green would be an added advantage Think of the life-cycle cost instead of the unit cost Financial gains from improved environmental performances
TRANFORMATIONINNOVATIONPARTNERSHIP Recommendations to Further Promote Greening of Supply Chain Develop expertise in supply chain management Sharing of experience of successes to help build the roadmap for others Compile and publicise examples of win-win green purchasing strategies as case studies to promote collaborative green purchasing Government sector to be the driver. Merit points to companies that implement environmentally friendly processes in government procurement Continuous promotion of transfer of technology and cleaner production methods Awards recognising environmental excellence should place extra emphasis on developing eco- products and processes.
TRANFORMATIONINNOVATIONPARTNERSHIP Conclusion Effective strategy to promote eco-products and green supply chain is through government procurement Effects of global environmental challenges provides an impetus for businesses to go green to remain competitive and for consumers to change their consumption patterns towards one that is more environmentally balanced Continuous showcasing of products and services to enhance awareness of all stakeholders