An Introduction to MYCarbon – A National Corporate GHG
Accounting Programme for Malaysia
REDD+ Stakeholder Consultation Workshop 19th February, 2013
Sunway Putra Hotel, Kuala Lumpur
MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT,
MALAYSIA
Dr. Gary W. Theseira
ENVIRONMENTAL MANAGEMENT AND CLIMATE CHANGE DIVISION
“voluntary reduction of up to 40% in terms of carbon emission intensity of GDP by the year 2020 compared to 2005 levels.”
“….conditional on receiving the transfer of technology and finance of adequate and effective levels from Annex 1 countries” “We remain committed to ensure at least 50% of our land area remain as forests as pledged in the Rio Summit. Currently our natural forests and agriculture crop plantations combined cover 75% of the country’s land area.”
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Malaysia’s Voluntary Indicator Announced
Prime Minister YAB Dato’ Sri Mohd. Najib bin Tun Abdul Razak at the 17th December 2009, during his address to the 15th Conference of the Parties to the UNFCCC
Source: Danish Energy Authority
The Danish gross
domestic product (GDP)
grew by 75 percent from
1980 to 2006 (at constant
prices).
In the same period the
consumption of energy in
Denmark has been more
or less constant.
60
80
100
120
140
160
180
1980 '85 '90 '95 '00 '05
GDP, 2000 Prices
Gross Energy Consumption, Adjusted
The Case of Denmark: Wealth Creation at
Constant Energy Consumption
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Source: National Energy Balance ,2008 Denmark
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The Case of Malaysia: Wealth Creation at
Increasing Energy Consumption
The Malaysia gross
domestic product (GDP)
grew by 4.7 times from
1980 to 2006 (at 2000
constant prices).
In the same period the
consumption of energy
increased by 6.3 times!
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Source: Fong, 2012. A Review of Greenhouse Gas Reporting Best Practices.
MANDATORY GHG REPORTING
PROGRAMMES
Mexico
Brazil
India
China
The Philippines
DEVELOPING COUNTRY INITIATIVES
7 Eco-Ideal Consulting Sdn Bhd Source: Fong, 2012. The Experience of WRI with GHG Protocol Development.
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Source: Fong, 2012. A Review of Greenhouse Gas Reporting Best Practices.
VOLUNTARY GHG REPORTING
PROGRAMMES
Business Goals and
Opportunities
Participating in mandatory
reporting programmes
Participating in GHG
markets
Public reporting and
participation in voluntary GHG
programmes
Recognition for early
voluntary action
Source: The GHG Protocol- A Corporate Accounting and Reporting Standard (Rev. Edition)
Managing GHG risks and
identifying reduction
opportunities
BENEFITS OF GHG ACCOUNTING &
REPORTING
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Develop standardized approaches and
principles for GHG accounting and reporting
Help companies and institutions to prepare
their GHG inventories
Encourage companies to set reduction
targets and design effective emissions
reduction action plans
MYCarbon Framework MYCarbon – BACKGROUND &
OBJECTIVES
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Measure the achievement of preparing
Malaysia for international compliance
standards
Simplify and reduce the costs of preparation
and compilation
Increase consistency and transparency in
GHG accounting and reporting
MYCarbon Framework MYCarbon – BACKGROUND &
OBJECTIVES
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International GHG Reporting and Auditing
Standards
Existing mandatory and voluntary corporate
reporting schemes
Existing reporting by companies in Malaysia
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Current Situation
KEY OUTCOMES FROM MYCarbon
STAKEHOLDER CONSULTATIONS
Stakeholders awareness enhanced
Stakeholders were consulted and provided their views & inputs on the proposed MYCarbon programme
Overall acceptance to programme – no major objections noted
Proposed programme structure and implementation – details were agreed in general, with some additional comments
Support measures such as capacity building, detailed guidance and financial incentives were highlighted as important factors to encourage participation
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Focal Point
Government
A
Company
C
Company
A
Government
C
Company B
Government
B
National
Registry (Web-based
Report)
Carbon
Management Audit
Provider
(if needed)
National
Committee/Council
On-going programmes
nationally and internationally
Corporate/ Entity Level Accounting and
Reporting
Carbon Management
Services Provider
(if needed)
MYCarbon
- National Corporate GHG
Reporting
Programme for
Malaysia
National
Reporting
Standards &
Guidance
Support
Measures e.g. fiscal
incentives, awards
etc.
MYCarbon FRAMEWORK (DEVELOPED IN OCTOBER 2012)
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• MYCarbon – National Corporate GHG Reporting Programme for Malaysia
• MYCarbon aims to encourage corporate and public organisations/entities to report their GHG emissions using recognised standard and guidance
Programme Name &
Objectives
• MYCarbon – Stage 1: Voluntary reporting for companies / organisations that meet the criteria and thresholds
• Level of emissions and energy usage to be the key threshold criteria
Legal Basis and Sector
Focus
• 6 GHGs under the Kyoto Protocol
• Other IPCC GHGs optional
Reported GHG
MAIN ELEMENTS OF MYCarbon
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• Environmental Management and Climate Change Division, Ministry of Natural Resources and Environment Malaysia (proposed)
Focal Point
• GHG Protocol – A Corporate Accounting and Reporting Standard; ISO 14064 can be used if verification is required
• Annual reporting
• Web-based submission (future)
• Corporate level report is required, activity level is optional (confidentiality)
• Verification (optional) – 3 reporting classes
• Reduction targets, strategy and action plan required
Reporting
• Organisation Boundary – Operation control as main criterion.
• Operational Boundary:-
• Scope 1: Direct emissions (mandatory)
• Scope 2: Purchase energy (mandatory)
• Scope 3: All other indirect emissions (optional)
Reporting Boundaries
MAIN ELEMENTS OF MYCarbon
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MYCarbon STAGE 1 - Criteria & Thresholds
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MYCARBON Framework Documentation
MYCarbon Introduction Booklet MYCarbon Framework
Specification
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Develop
MYCarbon
Standards and
Guidance
Document
Support
measures e.g.
tax breaks,
awards &
recognition are
important to
support
voluntary
reporting
Proposed full
scale pilot
implementation
project
MYCarbon – WAY FORWARD
Synergies &
Linkage to
Other GHG
Initiatives
(GHG Inventory,
REDD+ etc.)
Implementation of the MYCarbon to start in 2013
Institutional Set
Up to be
Formalised
THANK YOU
