National Corporate GHG Reporting Programme

for Malaysia

MYCarb n

�� ��� ���

October 2012

Ministry of Natural Resources and Environment (NRE)

Malaysia

Environmental Management and Climate Change Division

Level 6, Wisma Sumber Asli

No. 25, Persiaran Perdana, Precint 4, 62574 Putrajaya, Malaysia

Tel: +6-03-88861111 Fax: +6-03-88892672

Url: http://www.nre.gov.my/

United Nations Development Programme

(UNDP) Malaysia

Jalan Dungun, Damansara Heights

50490 Kuala Lumpur Malaysia

Tel: +6-03-20959122 Fax: +6-03-20952870

Url: http://www.undp.org.my/

CONCLUDING REMARKS AND WAY FORWARD

� � � ��

A framework for a national level corporate GHG reporting programme (MYCarbon)

has been developed in close consultations with stakeholders. Positive support and

feedback were received and there were no major objections to the programme.

MYCarbon is a strategic step to engage the corporate sector and industries in the

area of carbon reduction and green technology. MYCarbon will compliment other

initiatives such as renewable energy, energy e!ciency and green technology

development.

The current study only sets up a framework on the Corporate GHG Reporting

Programme. There are several follow-up works required before the programme can

be operationalised. In the interest of keeping the momentum and interest of the

stakeholders for the programme, it is essential to ensure no gaps exist immediately

after the delivery of the framework. The key follow up activities suggested are:

Propose to proceed with the implementation of the framework;

Support measures important to support voluntary reporting; and

Propose a full scale pilot implementation project.

PROJECT WEBPAGE

� ��� ����http://www.ecoideal.com.my/mycarbon/

Consultant:

Eco-Ideal Consulting

www.ecoideal.com.my

INTRODUCTION - VOLUNTARY COMMITMENT

� �� �����

Awareness and e�orts to address climate change are gaining momentum in

Malaysia. In 2009, our Prime Minister, YAB Datuk Seri Najib Bin Tun Abdul Razak,

pledged in Copenhagen that Malaysia by 2020 would voluntarily reduce its GHG

emissions intensity of GDP by up to 40% compared to 2005 levels.

14th December 2009 – Kuala Lumpur, Malaysia

“We are willing to o�er our commitment. I am not

just going to call on the developed world, I am going

to commit Malaysia to very credible cuts which

means we have to spend, which we will do.”

17th December 2009 – Copenhagen, Denmark

“I would also like to announce here in Copenhagen

that Malaysia is adopting an indicator of a voluntary

reduction of up to 40% in terms of emission intensity

of GDP by the year 2020 compared to 2005 levels. This

indicator is conditional on receiving the transfer of

technology and !nance of adequate and e�ective

levels from our Annex I partners...”

INTERNATIONAL CLIMATE CHANGE NEGOTIATION

� �� ��Over the last few years, climate change (CC) has become one of the main topics of

international negotiations and is now being identi!ed as one of the greatest

challenges human has ever faced. Along with the increased attention from

international community on this matter, there are emerging calls for developing

countries (including Malaysia) to formulate GHG reduction actions. It is timely to

start up voluntary reduction programmes within Malaysia in order to put ourselves

in a better position.

Main Elements of MYCarbon

The approach of the main programme elements are described brie"y below:

Reporting

Boundaries

Organisation Boundary

– Operation control as main requirement

Operational Boundary:-

Scope 1: Direct Emissions (Mandatory)

Scope 2: Purchase Energy (Mandatory)

Scope 3: All other indirect (Optional)

Programme

Name &

Objectives

MYCarbon – A National Corporate GHG Reporting Programme

for Malaysia

MYCarbon aims to encourage corporate and public

organisations/entities to report their GHG emissions through

public recognised standard and guidance

Legal Basis and

Sector Focus

MYCarbon – Stage 1: Voluntary reporting for

companies/organisations that meet the criteria and threshold

Level of emissions and energy usage to be the key threshold

criteria

Reported GHG6 GHGs under the Kyoto Protocol

Other IPCC GHG optional

Focal PointEnvironmental Management and Climate Change Division,

Ministry of Natural Resources and Environment Malaysia

(Proposed)

Fundamental

of Reporting

GHG Protocol – A Corporate Accounting and Reporting

Standard. ISO 14064 can be used if veri!cation is required

Calendar year for annual reporting

Web-based submission (future)

Corporate level report required, activity level optional

(con!dentiality)

Veri!cation optional – 3 reporting classes

Reduction targets, strategy and action plan is required

GLOBAL TREND FOR GHG REPORTING PROGRAMME

� �� �����

Worldwide, there are a number of existing programmes for GHG reporting and

several of them are undergoing development. Each programme is developed with

its aims and objectives based on national circumstances for GHG emissions

reduction. Thus, they are di�ering in reporting requirements of which the level of

thoroughness of a report is di�erent. The GHG reporting programmes have been

developed by several countries and international organisations. The current

approaches for these programmes are either mandatory or voluntary. Figure below

presents several GHG reporting programmes and their approaches.

Mandatory GHG Reporting Programme

Australia

The National Greenhouse

and Energy  Reporting 

(NGER) Scheme

Canada

Greenhouse Gas Emissions

Reporting Program (GHGRP)

Japan

Japanese Mandatory GHG

Accounting and Reporting

System

UK

Mandatory Greenhouse Gas

Emissions Reporting For UK

Listed Companies

USA

Mandatory Greenhouse

Gases Reporting Rules (MRR)

Brazil

Brazil GHG Protocol Program

North America

The Climate Registry (TCR)

UK

Carbon Disclosure Project

(CDP)

US

Climate Leaders

Voluntary GHG Reporting Programme

Source: Fong, 2012. A Review of Greenhouse

Gas Reporting Best Practices.

DEVELOPMENT OF MYCARBON – A NATIONAL

CORPORATE GHG REPORTING PROGRAMME FOR MALAYSIA

� �� ��

Key Outcomes from MYCarbon Stakeholder Consultations

The key outcomes from the stakeholder consultation workshops were:

cont...

Stakeholders awareness raised;

Stakeholders were consulted and provided their views & inputs on the

proposed MYCarbon;

Overall acceptance to programme – no major objections noted; and

Proposed programme structure and implementation details were agreed

in general, with some additional comments.

MYCarbon Framework (Developed in October 2012)

The programme has been named MYCarbon – A National Corporate GHG Reporting

Programme for Malaysia. The draft framework is presented below:

National Committee/

Council

On-going programmes

nationally and

internationally

Corporate/ Entity Level Accounting and Reporting

Supports Measurese.g. !scal incentives,

awards etc.

MYCarbonNational Corporate GHG Reporting

Programme for Malaysia

National Reporting

Standard &

Guidance

Focal Point

National Registry

(Web-based Report)

Company A Company B Company C

Government

A

Government

B

Government

C

Carbon Management

Audit Provider

(if needed)

Carbon Management

Services Provider

(if needed)

BENEFITS OF GHG ACCOUNTING AND REPORTING

� �� �����

A well-designed and operated corporate GHG accounting and reporting

programme can serve several business goals, including:

DEVELOPMENT OF MYCARBON – A NATIONAL

CORPORATE GHG REPORTING PROGRAMME FOR MALAYSIA� �� ��

MYCarbon Framework

In May 2012, the Ministry of Natural Resources and Environment (NRE), in

partnership with the United Nations Development Programme (UNDP) Malaysia

initiated a 4-months project (refer hereafter as “Project”) to develop a framework for

a National Carbon Disclosure Programme. The programme has been named as

MYCarbon – A National Corporate GHG Reporting Programme for Malaysia. Such

a National Carbon Disclosure Programme. The programme has been named as a National Carbon Disclosure Programme. The programme has been named as

MYCarbon – A National Corporate GHG Reporting Programme for Malaysia. Such

ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for

a National Carbon Disclosure Programme. The programme has been named as a National Carbon Disclosure Programme. The programme has been named as a National Carbon Disclosure Programme. The programme has been named as a National Carbon Disclosure Programme. The programme has been named as

ted a 4-months project (refer hereafter as “Project”) to develop a framework for

a National Carbon Disclosure Programme. The programme has been named as

MYCarbon – A National Corporate GHG Reporting Programme for Malaysia. Such

a National Carbon Disclosure Programme. The programme has been named as

ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for

a National Carbon Disclosure Programme. The programme has been named as a National Carbon Disclosure Programme. The programme has been named as

ted a 4-months project (refer hereafter as “Project”) to develop a framework for

a National Carbon Disclosure Programme. The programme has been named as

ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for ted a 4-months project (refer hereafter as “Project”) to develop a framework for

Business Goals and

Opportunities

Recognition for early

voluntary action

Public

reporting and

participation in

voluntary GHG

programmes

Participating in

GHG markets

Participating in

mandatory reporting

programmes

Managing

GHG risks and

identifying

reduction

opportunities

Source: The GHG Protocol – A Corporate Accounting and Reporting

Standard (Revised Edition)

e!ort is in line with the growing trends of GHG accounting and reporting,

particularly from the corporate sector. In addition, it is also essential to measure the

progress towards achieving the national emissions reduction of which such

programme will assist in tracking the GHG emissions and reduction from the

corporate sector. Eventually, it will also contribute to the readiness of Malaysia for

future voluntary reduction of GHG. Speci"c objectives of the project are to:

Develop standardized approaches and principles for GHG accounting and

reporting;

Increase consistency and transparency in GHG accounting and reporting;

Help companies and institutions to prepare a GHG inventory;

Simplify and reduce the costs of preparation and compilation;

Encourage company to set reduction targets and build an e!ective

emissions reduction action plan; and

Measure the achievement of preparing Malaysia for international

compliance.

MYCarbon Stakeholder Consultations

A total of two stakeholder consultation workshops were organised on the 12th July

2012 and 27th September 2012 respectively. The 1st stakeholder consultation

workshop was held to introduce the concept of the GHG accounting and reporting

to the invited stakeholders and to seek

inputs and comments from them. The

2nd stakeholder consultation workshop

was held to present the result of

discussion sessions of the 1st

stakeholder consultation workshop and

to further improve the draft framework

programme. Both workshops had

attracted 120 participants in total

representing 47 organisations from

government sectors, private sectors,

industry associations, NGOs and

academic.

4% NGOs4% NGOs

Private

Sectors

51%Government

Sectors

36%

Industry AssociationsIndustry AssociationsIndustry Associations

7%

Academic 2%

Participants by Organisation Type in

MYCarbon Stakeholder Consultations