Project Newsletter - biomass-sp.netbiomass-sp.net/wp-content/uploads/2011/11/Biomass... · Malaysian biomass producers to be not only ... expertise and experiences. ... Khairudin

Special addresses

he Biomass-SP project sits well within the New Economic Model (NEM) as presented by our Prime Minister, Yang

Amat Berhormat Datuk Seri Mohd Najib Tun Razak, where creativity and innovation play an important role in charting our country’s future development and competitiveness. The launch of the national green technology policy is yet another testament of the government’s commitment in which renewable energy and energy efficiency are emphasised as the catalyst for sustainable energy self-reliance, in which biomass energy is identified as part of the national energy mix.

In conjunction with the “Year of Innovation and Creativity” 2010, eight ministries are working together to promote innovation at all sectors of the economy and grassroots communities. Similarly, innovative entrepreneurs, small and medium enterprises (SMEs), research and technology development are at the heart of the national agenda and will continue to remain so in the near future.

If we continue to depend on capitalising our existing conventional resources and commodities like petroleum, rubber, palm oil and manufacturing without addressing our declining competitiveness, we are at risk of being trapped between the industrialised nations and emerging economies. In the innovation based economy, “knowledge” and “know-how” are the main drivers of economic growth instead of “land” and “raw materials”. At the moment, MOSTI is finalising the National Innovation Policy and is working on the setting up of the National Innovation Centre following consultation with relevant stakeholders.

Biomass-SP will facilitate direct implementation of Sustainable Production initiatives such as Clean Development Mechanism (CDM), Environmental

Management System (EMS), and carbon footprint reduction amongst biomass related SMEs. These initiatives are highly relevant in the current economic and climate policies where countries and businesses are striving to achieve sustainable development and contribute towards climate change mitigation.

01Biomass-SP January 2010 - December 2010

Twitching to sustainable development by encouraging a cleaner and more energy efficient industry is among main objectives

of the European cooperation with Asian countries, including Malaysia. To be able to reap the benefit of resources continuously without depleting these resources, the EU has adopted strict rules on sustainability concerning some of the products produced within the EU countries as well as those imported. In the EU, around 5% of final energy consumption is from bioenergy. The projections made for the Renewable Energy Road Map of January 2007 suggested that the use of biomass can be expected to double by 2020 if the EU is to achieve the 20% renewable energy target by that date. This target is set out in the EU 2020 Strategy and the Renewable Energy Directive.

With our Biomass-SP Project the EU aims to ensure that biomass industries in Malaysia exploit the market potentials of this sector in a sustainable manner and in close collaboration with all relevant stakeholders (industry, research community, policy makers, financial institutions, NGOs). If this project is successful, it will help Malaysian biomass producers to be not only "sustainable", but, in a way, ahead of the international agenda in this area.

To sustain regular dialogue on green technology, an EU-Malaysia GreenTech Business Platform will be set up. It will consist of industry and Government representatives and it will promote exchanges on the latest policy and regulatory developments and explore new areas for cooperation. Policy Dialogue on Climate Change is also expected to launch with Malaysian Government, as well as more projects aiming to tackle climate change.

Awareness Road Show Seminar on30 September 2010 at Hotel Equatorial, Kuala LumpurH.E. Vincent Piket, Ambassador & Head of Delegation of the European Union to Malaysia

S

EU-Malaysia Biomass Stakeholders Forum on 27 April 2010 at Hotel Istana, Kuala LumpurYB Dato’ Haji Fadillah Hj. Yusof, Deputy Minister of Science, Technology and Innovation gracing the event

EU-Malaysia Biomass Sustainable Production InitiativeIssue 1 : January 2010 to December 2010

Project Newsletter

Inside This Issue:

Special Addresses - 1

The EU-Malaysia Biomass Stakeholders Forum - 2

Message from the Project Chairman, Y.Bhg. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus - 3

Biomass-SP Outreach - 4-5

FAQs on EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP) - 6-7

EU Biomass Industry: Directives from the European Commission, Technology, Business Opportunities and Market Challenges - 8

Strategic Potential of Palm Biomass as an Energy Export - 9

Local and International Market Updates - 10

SWITCH-Asia in Full-support of Sustainable Consumption and Production (SCP) -11-12

Overcoming Barriers in Bioenergy Markets - 13

The 2nd SWITCH-Asia Networking Meeting in Beijing - 14

Biomass-SP in the News - 15

Future Project Activities in 2011 - 16

The EU-Malaysia Biomass Stakeholders Forum, 27 April 2010 at Hotel Istana, Kuala LumpurThe EU-Malaysia Biomass Stakeholders Forum served as an information-sharing platform for invited stakeholders from governments, industries and universities to interact with various parties involved in promoting biomass industry pillared on the concept of sustainable consumption and production.

This event was graced with a welcoming remark from the Biomass-SP Chairman, Y.Bhg. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus, followed by a special address by Mr. Sandro Paolicchi, Charge d’affairs a.i., Delegation of the European Union to Malaysia and inaugurated by Y.B. Dato’ Haji Fadillah bin Haji Yusof Deputy Minister of Science, Technology and Innovation Malaysia with an informative keynote address.

Various topics concerning the Malaysian biomass industry were being brought up by relevant industry and government stakeholders who were invited as speakers to share insights in their fields of expertise and experiences. Among the eminent speakers who were present are - Datuk Loo Took Gee, then Deputy Secretary General, now Secretary General of Ministry of Energy, Green Technology and Water, Dato’ Hafsah Hashim, Chief Executive Officer of SME Corporation Malaysia who spoke on Opportunities for SMEs, Mr. Ahmad Zairin Ismail, Chief Operating Officer of National Green Technology Centre presented An Overview of National Policy & Action Plan: Towards Sustainable Biomass Industry. SIRIM also shared their thoughts at the forum with Biomass R&D, Technology & Standards: Malaysia Experience, presented by Dr. Zainal Abidin bin Mohd Yusof, Vice President, Research & Technology Development.

The panel discussion session was conducted to wrap up the forum and it was moderated by Mr. Mohd Yusoff Sulaiman, President & Chief Executive Officer, Malaysian Industry-Government Group for High Technology (MIGHT) with a panel of distinguished prominent figures discussing the Issues, Opportunities & Way Forward for the Development of Biomass Industry in Malaysia.

There were a total of 79 biomass stakeholders who attended the forum on invitation basis and their participation in the Questions and Answers (Q&A) session were very active. Three major key concerns and recommendations to drive the biomass industry were identified at the forum – (a) Ensuring an enabling environment for the growth of biomass industry in Malaysia, (b) Developing the capacities and competitiveness of biomass SMEs and entrepreneurs in the global market, and (c) Establishing a national policy framework to govern biomass industry in Malaysia. Biomass-SP is taking the initiative in striving to address these issues within the framework of the project.

The EU-Malaysia Biomass Stakeholders Knowledge Exchange Session, 28 April 2010 at Hotel Istana, Kuala Lumpur

EU-Malaysia Biomass Sustainable Production Initiative

The distinguished panellists discussing the Issues, Opportunities & Way Forward for the Development of Biomass Industry in Malaysia. (From L-R): Y.Bhg. Tan Sri Prof. Emeritus Datuk Dr. Augustine S.H Ong, President of Malaysian Invention and Design Society (MINDS), Dr. Astimar Abdul Aziz, Head of Agro Product Unit at Biomass Technology Centre of Malaysian Palm Oil Board (MPOB), Mr. Mohd Yusoff Sulaiman, President & Chief Executive Officer, Malaysian Industry-Government Group for High Technology (MIGHT), Dr. Ing Giuliano Grassi, Secretary General of European Biomass Industry Association (EUBIA), Ir. Mohamad Adan Yusof, Executive Director of Mensilin Holdings Sdn. Bhd., Tn. Hj. Khairudin Hashim, Head of R&D Centre of Sime Darby Plantation Sdn Bhd.

02 Biomass-SP January 2010 - December 2010

In conjunction with the EU-Malaysia Biomass Stakeholders Forum which was held on the 27th of April 2010, Biomass-SP took the opportunity to expand the horizon of information sharing by organising the EU-Malaysia Biomass Stakeholders Knowledge Exchange Session on the next day. Several biomass and biomass-related experts were invited to a closed session of 15 stakeholders.

8 topics were presented of which the first was the Introduction of Biomass-SP Project by Dato’ Leong Kin Mun, Technical Advisor of Biomass-SP Project. The other topics cover the sweet sorghum as the future energy crop by Dr. Ing Giuliano Grassi, Secretary General, European Biomass Industry Association (EUBIA), practical issues concerning

CDM implementation in Malaysia was raised by Mr. Ilango S Bharathi Govindarajulu, Senior CDM Manager, YTL-SV Carbon Sdn Bhd, as well as how biomass can be part of a corporate social responsibility (CSR) initiative was enlightened by Mr. Hector Ingram, Commercial Director, Ricycled Asia Pacific Sdn Bhd. Other topics were focused on biomass as a potential solid biofuel in various physical forms, such as pellets, briquettes, etc.

The knowledge exchange session ended with a concluding remark by Dato’ Leong Kin Mun. All the presentation materials were compiled and are available for download on the project website, www.biomass-sp.net.

The EU-Malaysia Biomass Stakeholders Forum, 27 April 2010 at Hotel Istana, Kuala LumpurThe EU-Malaysia Biomass Stakeholders Forum served as an information-sharing platform for invited stakeholders from governments, industries and universities to interact with various parties involved in promoting biomass industry pillared on the concept of sustainable consumption and production.

This event was graced with a welcoming remark from the Biomass-SP Chairman, Y.Bhg. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus, followed by a special address by Mr. Sandro Paolicchi, Charge d’affairs a.i., Delegation of the European Union to Malaysia and inaugurated by Y.B. Dato’ Haji Fadillah bin Haji Yusof Deputy Minister of Science, Technology and Innovation Malaysia with an informative keynote address.

Various topics concerning the Malaysian biomass industry were being brought up by relevant industry and government stakeholders who were invited as speakers to share insights in their fields of expertise and experiences. Among the eminent speakers who were present are - Datuk Loo Took Gee, then Deputy Secretary General, now Secretary General of Ministry of Energy, Green Technology and Water, Dato’ Hafsah Hashim, Chief Executive Officer of SME Corporation Malaysia who spoke on Opportunities for SMEs, Mr. Ahmad Zairin Ismail, Chief Operating Officer of National Green Technology Centre presented An Overview of National Policy & Action Plan: Towards Sustainable Biomass Industry. SIRIM also shared their thoughts at the forum with Biomass R&D, Technology & Standards: Malaysia Experience, presented by Dr. Zainal Abidin bin Mohd Yusof, Vice President, Research & Technology Development.

The panel discussion session was conducted to wrap up the forum and it was moderated by Mr. Mohd Yusoff Sulaiman, President & Chief Executive Officer, Malaysian Industry-Government Group for High Technology (MIGHT) with a panel of distinguished prominent figures discussing the Issues, Opportunities & Way Forward for the Development of Biomass Industry in Malaysia.

There were a total of 79 biomass stakeholders who attended the forum on invitation basis and their participation in the Questions and Answers (Q&A) session were very active. Three major key concerns and recommendations to drive the biomass industry were identified at the forum – (a) Ensuring an enabling environment for the growth of biomass industry in Malaysia, (b) Developing the capacities and competitiveness of biomass SMEs and entrepreneurs in the global market, and (c) Establishing a national policy framework to govern biomass industry in Malaysia. Biomass-SP is taking the initiative in striving to address these issues within the framework of the project.

The EU-Malaysia Biomass Stakeholders Knowledge Exchange Session, 28 April 2010 at Hotel Istana, Kuala Lumpur


The distinguished panellists discussing the Issues, Opportunities & Way Forward for the Development of Biomass Industry in Malaysia. (From L-R): Y.Bhg. Tan Sri Prof. Emeritus Datuk Dr. Augustine S.H Ong, President of Malaysian Invention and Design Society (MINDS), Dr. Astimar Abdul Aziz, Head of Agro Product Unit at Biomass Technology Centre of Malaysian Palm Oil Board (MPOB), Mr. Mohd Yusoff Sulaiman, President & Chief Executive Officer, Malaysian Industry-Government Group for High Technology (MIGHT), Dr. Ing Giuliano Grassi, Secretary General of European Biomass Industry Association (EUBIA), Ir. Mohamad Adan Yusof, Executive Director of Mensilin Holdings Sdn. Bhd., Tn. Hj. Khairudin Hashim, Head of R&D Centre of Sime Darby Plantation Sdn Bhd.


In conjunction with the EU-Malaysia Biomass Stakeholders Forum which was held on the 27th of April 2010, Biomass-SP took the opportunity to expand the horizon of information sharing by organising the EU-Malaysia Biomass Stakeholders Knowledge Exchange Session on the next day. Several biomass and biomass-related experts were invited to a closed session of 15 stakeholders.

8 topics were presented of which the first was the Introduction of Biomass-SP Project by Dato’ Leong Kin Mun, Technical Advisor of Biomass-SP Project. The other topics cover the sweet sorghum as the future energy crop by Dr. Ing Giuliano Grassi, Secretary General, European Biomass Industry Association (EUBIA), practical issues concerning

CDM implementation in Malaysia was raised by Mr. Ilango S Bharathi Govindarajulu, Senior CDM Manager, YTL-SV Carbon Sdn Bhd, as well as how biomass can be part of a corporate social responsibility (CSR) initiative was enlightened by Mr. Hector Ingram, Commercial Director, Ricycled Asia Pacific Sdn Bhd. Other topics were focused on biomass as a potential solid biofuel in various physical forms, such as pellets, briquettes, etc.

The knowledge exchange session ended with a concluding remark by Dato’ Leong Kin Mun. All the presentation materials were compiled and are available for download on the project website, www.biomass-sp.net.

Message from the Project Chairman, Y.Bhg. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus, at the Awareness Road Show Seminar (ARSS), 30 September 2010 at Hotel Equatorial Kuala Lumpur

Y.Bhg. Tan Sri Datuk Dr.Ahmad Zaharudin Idrus

Biomass-SP seeks to promote the uptake of biomass commercialisation efforts among SMEs in Malaysia and enhance their competitiveness in the global market, especially the European Union (EU).

ince the rise of environmental revolution in 1970s, which was promptly followed by the international call for sustainable S

development in 1992 at the first International Earth Summit in Rio de Janeiro, as well as the recently held international climate change conference at Copenhagen; governments and industries have taken the word “green” to new heights. Green technology, green buildings, green productivity – the interest in everything green today has now worked up to such an enthusiastic awareness we could attach huge commercial values to them. In 2009, our Prime Minister YAB Dato’ Seri Mohd Najib Tun Abd Razak launched the National Green Technology Policy. According to the PM, “green technology is set to play an important role in charting the country’s development where green technology will be the new driver for the economic growth.” Green technology roadmap will be laid out to promote low-carbon technology and ensure sustainable development while conserving the natural environment and resources. More importantly, incentives are being designed and operationalised for private sectors to adopt green technology.

As stakeholders of in the biomass industry – how we are going to tap the opportunities from Malaysia’s booming interest in green technology as well as the increasing global awareness for climate change mitigation efforts through the initiative Sustainable Production of the Biomass Industries in Malaysia: Optimising Economic Potential and Moving towards Higher Value Chain, or in short, Biomass-SP. Biomass-SP is a project funded by the European Union (EU) under the SWITCH-Asia Programme. The project is jointly promoted by the Malaysian Industry- Government Group for High Technology (MIGHT), the Association of Environmental Consultants and Companies of Malaysia (AECCOM), the European Biomass Industry Association (EUBIA), and Danish Technological Institute (DTI). Under the auspices of these local and international experts, Biomass-SP seeks to build-up capacities

among selected SMEs in Malaysia and enhance their competitiveness in the global market, especially the European Union (EU).

More than 450 biomass SMEs have registered and attended our Information Briefing Sessions, and we have visited and met with more than 30 public research institutions and universities, SMEs and industry groups who are involved in biomass commercialisation efforts, directly or indirectly.

Within the framework of the project, Biomass-SP aims by championing the implementation of Sustainable Consumption and Production principles (SCP) in the biomass industry, the project will spur the growth of green technology inclusive of renewable energy and energy efficiency initiatives, as well value-added eco-products manufacturing in Malaysia. In the long term, Biomass-SP seeks to enhance environmental and business performance of biomass SMEs by linking them to the global biomass supply chain in light of the growing interest on climate change mitigation efforts at the international level.

The Information Session today will feature a presentation with our technical experts, who will introduce to you one of our key initiatives, the EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP). Under the EUM-BENP initiative, 50 qualified Malaysian biomass SMEs will be selected to participate in a series of complimentary coaching activities on subjects relevant to biomass commercialisation such as financing and funding opportunities, access to EU market and green procurement, implementation of environmental management systems (EMS), clean development mechanism (CDM), etc. This is an excellent opportunity for all participants to find out how you can benefit from the project, and most importantly, to express your interest firsthand to participate in our complimentary coaching services.



Biomass-SP Outreach Throughout July 2010 to September 2010, the Biomass-SP was on an active outreach exercise to promote the project objectives to the Malaysian biomass stakeholders, as well as introducing the EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP) to small and medium enterprises (SMEs) throughout the country by organising seven Awareness Road Show Seminars (ARSS) in different states. There were a total of about 800 stakeholders who attended the ARSS organised by the project management team listed below.

The seminars above received very good support and coverage from the national and local newspapers, as the services planned under the EUM-BENP initiatives have a lot to offer to Malaysian biomass SMEs. Among the newspapers which highlighted the project benefits in the news are The New Straits Times, The Star, Berita Harian, Utusan Melayu, Sin Chew, Borneo Post, See Hua Daily and Daily Express. Apart from the major dailies, industry specific publication also featured Biomass-SP in their circulars, such as Malaysian SME, Ipoh Echo and Agroworld Magazine.

During the ARSS in the seven states, the project took the opportunity to visit the SMEs who are established in the biomass sector and visited the local public universities which were situated in the respective states. The purpose of the visit to local public universities was to explore possible commercialisation of their biomass research and developments (R&Ds) via uptake by local SMEs. Under the project agenda, a capacity building programme to match-make universities and SMEs will be conducted in 2011. The project visited Universiti Pertanian Malaysia (UPM), Universiti Islam Antarabangsa Malaysia (UIAM), Universiti Sains Malaysia (USM), Universiti Teknologi Petronas (UTP), Universiti Teknologi Malaysia (UTM), Universiti Malaysia Sarawak (UNIMAS) and Universiti Malaysia Sabah (UMS).

Due to overwhelming response from the biomass stakeholders, the project has received a notable number of invitations to participate in external conferences to share best practices. The Technical Advisor, Dato’ Leong Kin Mun was invited as speaker at the Biomass Pellet Trade Asia 2010 in Jakarta, the Carbon Forum Asia 2010 in Singapore and Bioenergy International Asia Expo & Exhibition 2010 in Kuala Lumpur. Whereas the project Technical Coach, Mr. Tang Kok Mun was invited to speak at the 2nd International Conference on Oil Palm Biomass (ICOPB) 2010 in Kuala Lumpur.

No.

M.S. Garden Hotel, Kuantan

Star City Hotel, Alor Setar

Tower Regency Hotel, Ipoh

Grand Paragon Hotel, Johor Bahru

Hilton Kuching

Novotel 1Borneo, Kota Kinabalu

Equatorial Hotel, Kuala Lumpur

22 July 2010

28 July 2010

29 July 2010

9 August 2010

24 August 2010

25 August 2010

30 September 2010

Pahang

Kedah

Perak

Johor

Sarawak

Sabah

Kuala Lumpur

1

2

3

4

5

6

7

State Date Venue


04

Biomass-SP Chairman, Y.Bhg. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus presenting a token of appreciation to H.E. Vincent Piket, Ambassador & Head of Delegation of the European Union to Malaysia, accompanied by Dato’ Leong Kin Mun, Biomass-SP Technical Advisor.

Over 400 biomass stakeholders attending the ARSS in Kuala Lumpur.

Biomass-SP January 2010 - December 2010

Biomass-SP Outreach Throughout July 2010 to September 2010, the Biomass-SP was on an active outreach exercise to promote the project objectives to the Malaysian biomass stakeholders, as well as introducing the EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP) to small and medium enterprises (SMEs) throughout the country by organising seven Awareness Road Show Seminars (ARSS) in different states. There were a total of about 800 stakeholders who attended the ARSS organised by the project management team listed below.

The seminars above received very good support and coverage from the national and local newspapers, as the services planned under the EUM-BENP initiatives have a lot to offer to Malaysian biomass SMEs. Among the newspapers which highlighted the project benefits in the news are The New Straits Times, The Star, Berita Harian, Utusan Melayu, Sin Chew, Borneo Post, See Hua Daily and Daily Express. Apart from the major dailies, industry specific publication also featured Biomass-SP in their circulars, such as Malaysian SME, Ipoh Echo and Agroworld Magazine.

During the ARSS in the seven states, the project took the opportunity to visit the SMEs who are established in the biomass sector and visited the local public universities which were situated in the respective states. The purpose of the visit to local public universities was to explore possible commercialisation of their biomass research and developments (R&Ds) via uptake by local SMEs. Under the project agenda, a capacity building programme to match-make universities and SMEs will be conducted in 2011. The project visited Universiti Pertanian Malaysia (UPM), Universiti Islam Antarabangsa Malaysia (UIAM), Universiti Sains Malaysia (USM), Universiti Teknologi Petronas (UTP), Universiti Teknologi Malaysia (UTM), Universiti Malaysia Sarawak (UNIMAS) and Universiti Malaysia Sabah (UMS).

Due to overwhelming response from the biomass stakeholders, the project has received a notable number of invitations to participate in external conferences to share best practices. The Technical Advisor, Dato’ Leong Kin Mun was invited as speaker at the Biomass Pellet Trade Asia 2010 in Jakarta, the Carbon Forum Asia 2010 in Singapore and Bioenergy International Asia Expo & Exhibition 2010 in Kuala Lumpur. Whereas the project Technical Coach, Mr. Tang Kok Mun was invited to speak at the 2nd International Conference on Oil Palm Biomass (ICOPB) 2010 in Kuala Lumpur.

No.

M.S. Garden Hotel, Kuantan

Star City Hotel, Alor Setar

Tower Regency Hotel, Ipoh

Grand Paragon Hotel, Johor Bahru

Hilton Kuching

Novotel 1Borneo, Kota Kinabalu

Equatorial Hotel, Kuala Lumpur

22 July 2010

28 July 2010

29 July 2010

9 August 2010

24 August 2010

25 August 2010

30 September 2010

Pahang

Kedah

Perak

Johor

Sarawak

Sabah

Kuala Lumpur

1

2

3

4

5

6

7

State Date Venue


04

Biomass-SP Chairman, Y.Bhg. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus presenting a token of appreciation to H.E. Vincent Piket, Ambassador & Head of Delegation of the European Union to Malaysia, accompanied by Dato’ Leong Kin Mun, Biomass-SP Technical Advisor.

Over 400 biomass stakeholders attending the ARSS in Kuala Lumpur.


The project management team took the proactive measure to increase the project visibility by exhibiting at various biomass-related exhibitions in Malaysia. To further enhance the capacity of knowledge-sharing and also for the purpose of networking, the project was invited to attend the biomass-related events organised by government and industry expert groups. The list of exhibitions is as shown in table below.

In 2011, the project will implement the second phase of activities in 2011, which focuses on capacity building of the selected 50 EUM-BENP companies, as well as other relevant Malaysian biomass stakeholders.

Biomass-SP at SEA Pacific Paper Tech Sdn. Bhd. for site visit and discussion.

Discussion with Palm Oil Industrial Cluster (POIC) Sabah.

Discussion at Universiti Islam Antarabangsa Malaysia (UIAM). Site visit at Serba Wangi Sdn. Bhd. rice mill.

No.

International Invention, Innovation &Technology Convention (ITEX) 2010

Green Energy Asia 2010

Maybank Green Technology FinancingSeminar

2nd International Conference on OilPalm Biomass (ICOPB) 2010

International Greentech & EcoProducts Exhibition & Conference

Malaysia (IGEM 2010)

Kuala Lumpur ConventionCentre (KLCC)


Sunway Resort Hotel & Spa

MATRADE Exhibition &Convention Centre


14 - 16 May 2010

15 - 18 June 2010

22 June 2010

2 - 3 August 2010

14 - 17 October 2010

1

2

3

4

5

State Date Venue



FAQs on EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP)1. What is EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP)?

EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP) is an initiative within the framework of Sustainable Production (SP) of the Biomass Industries in Malaysia (Biomass-SP), an EU-funded project under the SWITCH-Asia Programme, which supports the global climate change mitigation effort by addressing the business and environmental management capacity issues of Malaysian biomass SMEs linking to the EU value chain via the Sustainable Consumption & Production (SCP) approach. The project targets all biomass SMEs & Technology Providers who are involved in the biomass-related business activities.

2. How will this programme benefit the SMEs or entrepreneurs?

Selected 50 Malaysian biomass SMEs will be selected for EUM-BENP who will be entitled to receive COMPLIMENTARY / SUBSIDISED coaching and training services in some of the following areas:

Access to Government Grants / Soft Loans / Investment Incentives / Venture CapitalFinancial assistance in the form of Government Grants / Soft Loans / Investment Incentives / Venture Capital, will be explored to bridge the finance for commercialisation activities. The SMEs and aspiring entrepreneurs are invited to participate in this SMEs coaching programme to capitalise on these financial facilities to kick-start or expand their business in biomass utilisation.

Business Match-making with European Union (EU) CompaniesThe project will be inviting some EU companies, i.e. buyers, investors, technology providers, traders, financiers/investors, consultants & etc. to participate in the EU-Asia Biomass Best Practices & Business Partnering Conference in Malaysia in 2012 for the purpose of matching business collaborations with Malaysia biomass SMEs. The EU companies will be granted travel incentive to attend the Business Match-making Event. For SMEs who would like to expand their market with an EU partner, the coaching service may catapult the SMEs’ search for the right partner.

Commercialisation of Local Biomass Technologies / R&DThe abundance of biomass in Malaysia has spurred much R&D work by local research institutions and universities in the utilisation of biomass to create a wide of range of high

value products for commercial applications. These include conversion of solid biomass to liquid and gaseous renewable fuels, fine chemicals, wood substitute products, pulp and paper, bio-fertilisers as well as bio-composite materials. This coaching programme will assist SMEs and aspiring entrepreneurs to exploit these local technologies and develop marketable products based on these R&D outputs. Representatives of the commercialisation arms from the local public universities will be given the opportunity to present their novel R&Ds which are for commercialisation uptake. And vice versa, SMEs who would like to engage the university to be their R&D partner, will be given a fair chance to propose collaboration for possibility of a venture.

EU Green Procurement Standards and Specifications / EU Market Access OpportunitiesSMEs that are currently exporting to the EU or intend to enter the EU markets are encouraged to participate in this coaching programme to learn more about the green procurement standards in the region in order to enhance their exporting capabilities and profitability. Each export items has their own unique set of requirements to be met before they can be accepted into the EU market and compliance to these standards and specifications will open up opportunities for Malaysian SMEs to access into the EU stringent market, and also appear more competitive in the international business arena.

Clean Development Mechanism (CDM) Project Idea Note (PIN) & Project Design Document (PDD) Development For businesses and SMEs, CDM offers an alternative means of revenue for ‘green’ projects that includes biomass utilisation of renewable power generation, biogas, fuel-switching projects, palm oil mill effluent (POME) methane capturing, as well as bio-composting projects. SMEs who have business ideas to exploit our local biomass resources are invited to participate in this coaching programme which will be provided at zero cost with expert consultancy services for the development of CDM projects from Project Idea Note (PIN) stage up to Project Design Document (PDD) stage. The Biomass-SP can facilitate CDM project owners by matching them with the available CDM project investors, consultants and technology providers involving in co-financing or equity participation of Green Projects.



FAQs on EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP)1. What is EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP)?

EU-Malaysia Biomass Entrepreneurs Nurturing Programme (EUM-BENP) is an initiative within the framework of Sustainable Production (SP) of the Biomass Industries in Malaysia (Biomass-SP), an EU-funded project under the SWITCH-Asia Programme, which supports the global climate change mitigation effort by addressing the business and environmental management capacity issues of Malaysian biomass SMEs linking to the EU value chain via the Sustainable Consumption & Production (SCP) approach. The project targets all biomass SMEs & Technology Providers who are involved in the biomass-related business activities.

2. How will this programme benefit the SMEs or entrepreneurs?

Selected 50 Malaysian biomass SMEs will be selected for EUM-BENP who will be entitled to receive COMPLIMENTARY / SUBSIDISED coaching and training services in some of the following areas:

Access to Government Grants / Soft Loans / Investment Incentives / Venture CapitalFinancial assistance in the form of Government Grants / Soft Loans / Investment Incentives / Venture Capital, will be explored to bridge the finance for commercialisation activities. The SMEs and aspiring entrepreneurs are invited to participate in this SMEs coaching programme to capitalise on these financial facilities to kick-start or expand their business in biomass utilisation.

Business Match-making with European Union (EU) CompaniesThe project will be inviting some EU companies, i.e. buyers, investors, technology providers, traders, financiers/investors, consultants & etc. to participate in the EU-Asia Biomass Best Practices & Business Partnering Conference in Malaysia in 2012 for the purpose of matching business collaborations with Malaysia biomass SMEs. The EU companies will be granted travel incentive to attend the Business Match-making Event. For SMEs who would like to expand their market with an EU partner, the coaching service may catapult the SMEs’ search for the right partner.

Commercialisation of Local Biomass Technologies / R&DThe abundance of biomass in Malaysia has spurred much R&D work by local research institutions and universities in the utilisation of biomass to create a wide of range of high

value products for commercial applications. These include conversion of solid biomass to liquid and gaseous renewable fuels, fine chemicals, wood substitute products, pulp and paper, bio-fertilisers as well as bio-composite materials. This coaching programme will assist SMEs and aspiring entrepreneurs to exploit these local technologies and develop marketable products based on these R&D outputs. Representatives of the commercialisation arms from the local public universities will be given the opportunity to present their novel R&Ds which are for commercialisation uptake. And vice versa, SMEs who would like to engage the university to be their R&D partner, will be given a fair chance to propose collaboration for possibility of a venture.

EU Green Procurement Standards and Specifications / EU Market Access OpportunitiesSMEs that are currently exporting to the EU or intend to enter the EU markets are encouraged to participate in this coaching programme to learn more about the green procurement standards in the region in order to enhance their exporting capabilities and profitability. Each export items has their own unique set of requirements to be met before they can be accepted into the EU market and compliance to these standards and specifications will open up opportunities for Malaysian SMEs to access into the EU stringent market, and also appear more competitive in the international business arena.

Clean Development Mechanism (CDM) Project Idea Note (PIN) & Project Design Document (PDD) Development For businesses and SMEs, CDM offers an alternative means of revenue for ‘green’ projects that includes biomass utilisation of renewable power generation, biogas, fuel-switching projects, palm oil mill effluent (POME) methane capturing, as well as bio-composting projects. SMEs who have business ideas to exploit our local biomass resources are invited to participate in this coaching programme which will be provided at zero cost with expert consultancy services for the development of CDM projects from Project Idea Note (PIN) stage up to Project Design Document (PDD) stage. The Biomass-SP can facilitate CDM project owners by matching them with the available CDM project investors, consultants and technology providers involving in co-financing or equity participation of Green Projects.



Carbon Footprint Measurement

For manufacturers, this offers them the opportunity to position and differentiate their products for their competitors with less competition on pricing alone. One of the ways to provide consumers with such information ‘carbon footprint labelling’ which provides the carbon dioxide emission for the product throughout the whole life-cycle of the product (from production and disposal). Under this coaching programme, SMEs will be assisted by our experts in the development of the carbon life-cycle of their products and services based on internationally-accepted methodologies.

Certification to ISO 14001 Environmental Management System or other ISO 14000 series

The ISO 14001 Environmental Management System or other ISO 14000 environmental certifications series are one of the procurement standards that many international buyers are looking for. Implementation of ISO 14000 series will mitigate the risk of national environmental regulation violations and prevent pollution with establishment of internal environmental policy. Malaysia SMEs who have ISO 14001 is a step ahead in securing global buyers. Under this coaching programme, SMEs will be provided support with guidance on how to establish, implement, maintain or improve an environmental management system.

Other specific coaching services / trainings which are required by the SMEs within the project framework

The SMEs who find the above listed coaching services irrelevant may also request for specific coaching services within the Biomass-SP project framework that can assist in their organisation’s capacity building effort. Biomass-SP is committed to address the issues faced by the Malaysian biomass SMEs which also create concerted effort to mitigate global climate change. The final goal is to increase the competency level of the Malaysian biomass SMEs to be more competitive in the global green market.

3. How will the SMEs be assisted throughout this programme?

For EUM-BENP, the project will engage several experts from Malaysia and the EU in various subjects to conduct the capacity building programmes from 2011 to 2013. Selected SMEs will only need to attend the relevant sessions which aim at fulfilling their capacity needs, as mentioned above, and also to enhance their knowledge for better understanding of the EU green market. Biomass-SP will also be organising an EU-Asia Biomass Best Practices & Business Partnering Conference in 2012 for the purpose of knowledge sharing and to bridge Malaysian and EU biomass SMEs for potential business / technological collaboration. The project will subsidise the travel expenses of the participating EU companies to Malaysia. Last but not least towards the completion of the project, the project will produce the Biomass Action Plan for Malaysia based on the inputs of biomass stakeholders, compiled throughout the project activities.

4. How is the take up among the SMEs in the EUM-BENP at the moment?

A total of 126 applications were received for evaluation. The expression of interests received from Malaysian biomass SMEs coming from various biomass industries such as eco-products, bio-chemicals, environmental services, agriculture services, renewable energy projects and solid fuel.


Under the EUM-BENP initiative, 50 qualified Malaysian biomass SMEs will be selected to participate in a series of complimentary coaching activities on subjects relevant to biomass commercialisation such as financing and funding opportunities, access to EU market and green procurement, implementation of environmental management systems (EMS), clean development mechanism(CDM), etc.


EU Biomass Industry: Directives from the European Commission, Technology, Business Opportunities and Market Challenges

World wide interest for Biomass resources is now emerging because: • Its potential is considerable • Biomass is able to penetrate all energy

sectorial markets, but economic constraints still limits its general deployment

• Many benefits (socio, economic, environmental, diversification of energy supply, rural development etc.) related to possible modern large use of biomass has generated strong interest and support of political decision makers.

Worldwide biomass resources • Worldwide biomass stock: ~ 370 B TOE/y • World biomass production: - Terrestrial: ~ 80 B TOE/y - Acquatic: ~ 20 B TOE/y • Estimation of world biomass potential (year

2100): - Biomass potential: ~ 6.6 B TOE/y - Ultimate future potential (max): ~ 28.3 B

TOE/y • Total Energy consumption (2000): ~ 9.9 B

TOE/a • Total electricity consumption (2040): ~

37000 TWh • Total nuclear energy supply in year, 2000: 638 MTOE/y 2020: 690 MTOE/y *B TOE: Billion of Tonnes Oil Equivalent (1

TOE ~ 2.4 t dry biomass)

EC Biofuel Policies & TargetsDirective 2003/30/EC of 08.05.2003 on the promotion of liquid biofuels for transport targets :2% by 2005 & 5.75% by 2020Biofuels can be made available as: • Pure • Blended in mineral oil derivatives • Liquids derived from biofuels such as ETBE Suggested biofuel contribution in 2020 : 10%

Directive 2003/96/EC of 27.10.2003 restructuring the Community framework for the taxation of energy products and electricity :Article 16 on “Biofuels and other products produced from biomass” allows the EU Members States to apply exemption or reduced rate of taxation.

Future Economic Opportunities for BioenergyAssuming an import price for: • Oil = 70 $/bbl* • Natural Gas = 250 €/ 1.000 m3 (300 €/TOE)

The level of competitiveness for biofuels is around : ~ 50 €/dryt (solid biomass) ~ 450 €/TOE (liquid biofuels for transport)* A price of ~ 100 $/bbl could become a reality around the year 2030

Mitigation of CO2 EmissionsI. Efficiency Improvement: processing & use;II. CO2 storage, but is an expensive solution :

(i.e. 100% increase of electricity production in conventional coal power-plants ~ 17% of electricity loss).

(~ 300-400€/tCO2 avoided in transport).III. Deployment of R.E.; - Solar-wind Hydro-Biomass. - Modern Biomass will play a crytical rôle:

already is providing a good contribution having increased its acquatic-terrestrial carbon sink (due to the CO2 fertilisation effects) reducing thus, its accumulation level into the atmosphere from ~ 22 Bill ton/y to ~ 12 Bill t/y.

In future, large-scale vegetation in marginal

lands and surplus agri-lands will be used for production and substitution of modern biofuels to fossil-fuels. An area of ~ 400 million ha of land cultivated by well selected C-4 crops could be able to absorb the CO2 annual increase in the atmosphere.

Stationary Plants with high CO2 Emissions • Cement Factories: ~ tCO2 /tCement (i bill t

cement/y). • Steel Factories: ~ 3tCO2 /tsteel (1.2 bill

steel/y). • Power Plants (coal): ~ 1kg CO2 / KWhe

(18000 bill Kwhe/y). • Oil Refineries: ~ 0.5 tCO2/t oil (3.5 bill t/y).

Presentation by Dr. Ing. Giuliano Grassi, Secretary General of European Biomass Industry Association (EUBIA) at EU-Malaysia Biomass Stakeholders Forum 2010.


08

Dr. Ing Giuliano Grassi of EUBIA sharing his perspective on EU bioenergy development at the Knowledge Exchange Session.


EU Biomass Industry: Directives from the European Commission, Technology, Business Opportunities and Market Challenges

World wide interest for Biomass resources is now emerging because: • Its potential is considerable • Biomass is able to penetrate all energy

sectorial markets, but economic constraints still limits its general deployment

• Many benefits (socio, economic, environmental, diversification of energy supply, rural development etc.) related to possible modern large use of biomass has generated strong interest and support of political decision makers.

Worldwide biomass resources • Worldwide biomass stock: ~ 370 B TOE/y • World biomass production: - Terrestrial: ~ 80 B TOE/y - Acquatic: ~ 20 B TOE/y • Estimation of world biomass potential (year

2100): - Biomass potential: ~ 6.6 B TOE/y - Ultimate future potential (max): ~ 28.3 B

TOE/y • Total Energy consumption (2000): ~ 9.9 B

TOE/a • Total electricity consumption (2040): ~

37000 TWh • Total nuclear energy supply in year, 2000: 638 MTOE/y 2020: 690 MTOE/y *B TOE: Billion of Tonnes Oil Equivalent (1

TOE ~ 2.4 t dry biomass)

EC Biofuel Policies & TargetsDirective 2003/30/EC of 08.05.2003 on the promotion of liquid biofuels for transport targets :2% by 2005 & 5.75% by 2020Biofuels can be made available as: • Pure • Blended in mineral oil derivatives • Liquids derived from biofuels such as ETBE Suggested biofuel contribution in 2020 : 10%

Directive 2003/96/EC of 27.10.2003 restructuring the Community framework for the taxation of energy products and electricity :Article 16 on “Biofuels and other products produced from biomass” allows the EU Members States to apply exemption or reduced rate of taxation.

Future Economic Opportunities for BioenergyAssuming an import price for: • Oil = 70 $/bbl* • Natural Gas = 250 €/ 1.000 m3 (300 €/TOE)

The level of competitiveness for biofuels is around : ~ 50 €/dryt (solid biomass) ~ 450 €/TOE (liquid biofuels for transport)* A price of ~ 100 $/bbl could become a reality around the year 2030

Mitigation of CO2 EmissionsI. Efficiency Improvement: processing & use;II. CO2 storage, but is an expensive solution :

(i.e. 100% increase of electricity production in conventional coal power-plants ~ 17% of electricity loss).

(~ 300-400€/tCO2 avoided in transport).III. Deployment of R.E.; - Solar-wind Hydro-Biomass. - Modern Biomass will play a crytical rôle:

already is providing a good contribution having increased its acquatic-terrestrial carbon sink (due to the CO2 fertilisation effects) reducing thus, its accumulation level into the atmosphere from ~ 22 Bill ton/y to ~ 12 Bill t/y.

In future, large-scale vegetation in marginal

lands and surplus agri-lands will be used for production and substitution of modern biofuels to fossil-fuels. An area of ~ 400 million ha of land cultivated by well selected C-4 crops could be able to absorb the CO2 annual increase in the atmosphere.

Stationary Plants with high CO2 Emissions • Cement Factories: ~ tCO2 /tCement (i bill t

cement/y). • Steel Factories: ~ 3tCO2 /tsteel (1.2 bill

steel/y). • Power Plants (coal): ~ 1kg CO2 / KWhe

(18000 bill Kwhe/y). • Oil Refineries: ~ 0.5 tCO2/t oil (3.5 bill t/y).

Presentation by Dr. Ing. Giuliano Grassi, Secretary General of European Biomass Industry Association (EUBIA) at EU-Malaysia Biomass Stakeholders Forum 2010.


08

Dr. Ing Giuliano Grassi of EUBIA sharing his perspective on EU bioenergy development at the Knowledge Exchange Session.


Strategic Potential of Palm Biomass as an Energy Export

Biomass is the fourth largest global energy resource after coal, oil and natural gas; it has been estimated that about 14% of global primary energy output is derived from biomass. This percentage is significantly higher in many developing and under-developed countries due to its easy accessibility and the relatively low technology required to extract its energy content.

In Malaysia, a minimum of 168 million tonnes of biomass is produced annually; where up to 94% are from the palm oil industry; while the remaining 6% are from the timber, rice and sugarcane industries.

All these forms of biomass have the potential to be converted into energy sources whether in the form of solid fuel i.e. pellets and briquettes, liquid biofuels as well as biogas.

In Malaysia, many companies have already been taking advantage of the abundant biomass resources for energy use. Two of Lafarge’s cement plants in Malaysia have already substituted its coal consumption with Palm Kernel Shells (PKS), resulting in an estimated reduction of its CO2 emissions by more than 60,000 tons per year. Glove manufacturers in Malaysia, are also strategising to replace their gas and fuel oil with biomass to run their energy intensive production processes.

There is also increasing number of companies venturing into the production of biomass fuel pellets and briquettes for the export market such as Europe, Japan, Korea and even China. Malaysia, as one of the largest producers of palm oil has tremendous potential to exploit the biomass generated from the industry either for its own energy use or as an energy export.

The widespread utilisation of biomass as an energy source is still a challenging prospect in Malaysia; requiring the political will as well as the economical pull to make it viable. One of the major hurdles currently faced is the uncertainty in the supply of palm biomass as well as its long-term price stability. The availability of biomass is still ‘locked’ inside within the oil palm plantations due to costs, logistics and sustainability issues.

Competing uses of palm biomass as feedstock for the production of organic compost, bio-composites, pulp and paper etc. has also added to this uncertainty in supply. As such, this uncertainty has resulted in the perceived high risk in investing into biomass energy projects. Biomass-SP believes that the export energy market for biomass in the form of fuel pellets and briquettes holds an important key for driving ahead the local biomass industry. The potential for export market is driven by both pull and push factors that should be exploited to develop this industry.

Pull factors include the global climate change agenda that has resulted in the commitment by regions and countries such as the European Union, Japan, South Korea and China to switch to renewable energy sources. The switch to solid biomass fuels requires low technological changeover as compared to other forms of renewable sources such as solar and wind power. The global politics and economics of fossil-based energy sources have also motivated countries to reduce their dependency on these sources and diversify to alternative energy sources.

On the push side, the production of biomass pellets and briquettes has relatively low technological entry barrier. Malaysia already has a very well-established oil palm equipment design and fabrication industry to support this new venture. The creation of additional economic wealth from the biomass will further enhance the economic returns from the national agricultural sector.

It is hoped that with this export market will contribute towards the maturing of the local biomass industry and creation of an efficient biomass supply chain within the country as well as the region with Indonesia as another major palm oil producer. This can be followed by more advanced stage of development i.e. the commercial production of next generation of liquid biofuels from palm biomass. Technologies to do so are already in the advanced stage of development whether via biological or thermophysical means. It is therefore important that the development of the whole biomass industry in Malaysia to be viewed in a holistic manner in order to maximise its strategic potential for the nation.

Type of Oil PalmBiomass

Quantity(million ton)Wet Basis

MoistureContent

%

Calorificvalue MJ/

kg

EFB

PKS

Fibre

POME

Palm Biomass Generated in Malaysia (2009)

Biomass Fuel Briquette

19.71

5.14

11.14

55.71

(1,624 cu.m)

67.00

12.00

37.00

-

18.960

20.093

18.795

20 MJ/m3



Local and International Market Updates

Supporting Climate Change Mitigation in the National Key Economic Area (NKEA) Agenda

The fifth Entry Point Project (EPP) under the Palm Oil NKEA is Developing Biogas at Palm Oil Mills. Methane is recognised as one of the most harmful greenhouse gases (GHGs) which has high potential for causing global warming. In attempt to be part of the climate change mitigation effort, the Performance Management and Delivery Unit (PEMANDU) has identified the potential of clean development mechanism (CDM) from methane capture at the palm oil mill effluent (POME) pond. 250 mills are targeted to supply electricity to the national grid by 2020. The accelerate the development of biogas plants, the electricity tariff for Renewable Energy Power Purchasing Agreement (REPPA) will have to increase from RM0.21/kWh to RM0.35/kWh. The total funding cost which will be expected from private initiative is estimated at RM2.8 billion – for building gas flaring facilities, connection of mills to grid and gas burners.

Source:Economic Transformation Programme: A Roadmap for Malaysia, PEMANDU

New EU energy efficiency label

In June 2010, the European Union (EU) Member States will have one year to translate the consumer electrical product labelling directive into national legislation. The most obvious change is in the labelling scale where categories A – G will be dropped and replaced with new classes A+, A++ and A+++. Malaysian exporters of electrical and electronics (E&E) products are required to follow the labelling standard for EU market access. Other energy-related products are foreseen to adopt the labelling regulation and Malaysian exporters are encouraged to prepare for it

New import control system in the EU

All carriers are mandated to provide EU Customs, electronic advanced information on shipments that are either in transit through the EU or destined to any of the EU members state starting 1st of January 2011. Under the ICS, every shipment requires the advance filing of 12 data elements (10 from the Importer of the record and two from the carrier), like the 10 + 2 programme in the United States prior to goods being loaded on a carrier at the point of origin. The pre-arrival information in the Entry Summary Declaration (ENS) is provided at the first point of entry into the EU. Malaysian companies are advised to obtain more information on the new import control system in the EU and prepare to comply with the regulation.

Source:Trademart November – December 2010, MATRADE

EU-Malaysia Free Trade Area (FTA) Negotiations

On 5 October 2010, Malaysian Prime Minister, YAB Dato’ Seri Mohd. Najib Tun Abdul Razak and European Commission's President Barroso launched two major bilateral initiatives in Brussels, aimed at boosting bilateral trade and investment relations and at creating a new strategic dimension for the EU-Malaysia political dialogue and economic cooperation. The future EU-Malaysia Free Trade Area will provide a long-term, stable legal framework for the relations between two equal partners and remove tariffs on the near totality of goods opening trade in services (beyond the level of commitment undertaken by both the EU and Malaysia in the WTO). It will also boost bilateral investment by providing a legally secure framework for our trade relations, thus providing legal certainty and predictability to our respective economic operators. Malaysia is the second ASEAN country to open FTA negotiations with the EU. The EU is Malaysia's fourth largest trading partner (behind Singapore, China and the USA). Malaysia is the EU's second individual trade partner in ASEAN (behind Singapore, but ahead of much larger and more populous countries like Indonesia, Thailand, Vietnam and the Philippines). Bilateral trade in goods reached 23 billion Euros in 2009. Although EU exports grew by 1.2% on average per year between 2005 and 2009, Malaysia has consistently recorded a trade surplus of about 5 billion Euros with the EU over the same period. Bilateral trade in services was approximately 4.5 billion Euros in 2008.

Sourcehttp://www.delmys.ec.europa.eu/en/EU-Malaysia%20FTA.html

10


The future EU-Malaysia Free Trade Area will provide a long-term, stable legal framework for the relations between two equal partners and remove tariffs on the near totality of goods opening trade in services


JABATAN PERDANA MENTERI PERFORMANCE MANAGEMENT AND DELIVERY UNIT

Local and International Market Updates

Supporting Climate Change Mitigation in the National Key Economic Area (NKEA) Agenda

The fifth Entry Point Project (EPP) under the Palm Oil NKEA is Developing Biogas at Palm Oil Mills. Methane is recognised as one of the most harmful greenhouse gases (GHGs) which has high potential for causing global warming. In attempt to be part of the climate change mitigation effort, the Performance Management and Delivery Unit (PEMANDU) has identified the potential of clean development mechanism (CDM) from methane capture at the palm oil mill effluent (POME) pond. 250 mills are targeted to supply electricity to the national grid by 2020. The accelerate the development of biogas plants, the electricity tariff for Renewable Energy Power Purchasing Agreement (REPPA) will have to increase from RM0.21/kWh to RM0.35/kWh. The total funding cost which will be expected from private initiative is estimated at RM2.8 billion – for building gas flaring facilities, connection of mills to grid and gas burners.

Source:Economic Transformation Programme: A Roadmap for Malaysia, PEMANDU

New EU energy efficiency label

In June 2010, the European Union (EU) Member States will have one year to translate the consumer electrical product labelling directive into national legislation. The most obvious change is in the labelling scale where categories A – G will be dropped and replaced with new classes A+, A++ and A+++. Malaysian exporters of electrical and electronics (E&E) products are required to follow the labelling standard for EU market access. Other energy-related products are foreseen to adopt the labelling regulation and Malaysian exporters are encouraged to prepare for it

New import control system in the EU

All carriers are mandated to provide EU Customs, electronic advanced information on shipments that are either in transit through the EU or destined to any of the EU members state starting 1st of January 2011. Under the ICS, every shipment requires the advance filing of 12 data elements (10 from the Importer of the record and two from the carrier), like the 10 + 2 programme in the United States prior to goods being loaded on a carrier at the point of origin. The pre-arrival information in the Entry Summary Declaration (ENS) is provided at the first point of entry into the EU. Malaysian companies are advised to obtain more information on the new import control system in the EU and prepare to comply with the regulation.

Source:Trademart November – December 2010, MATRADE

EU-Malaysia Free Trade Area (FTA) Negotiations

On 5 October 2010, Malaysian Prime Minister, YAB Dato’ Seri Mohd. Najib Tun Abdul Razak and European Commission's President Barroso launched two major bilateral initiatives in Brussels, aimed at boosting bilateral trade and investment relations and at creating a new strategic dimension for the EU-Malaysia political dialogue and economic cooperation. The future EU-Malaysia Free Trade Area will provide a long-term, stable legal framework for the relations between two equal partners and remove tariffs on the near totality of goods opening trade in services (beyond the level of commitment undertaken by both the EU and Malaysia in the WTO). It will also boost bilateral investment by providing a legally secure framework for our trade relations, thus providing legal certainty and predictability to our respective economic operators. Malaysia is the second ASEAN country to open FTA negotiations with the EU. The EU is Malaysia's fourth largest trading partner (behind Singapore, China and the USA). Malaysia is the EU's second individual trade partner in ASEAN (behind Singapore, but ahead of much larger and more populous countries like Indonesia, Thailand, Vietnam and the Philippines). Bilateral trade in goods reached 23 billion Euros in 2009. Although EU exports grew by 1.2% on average per year between 2005 and 2009, Malaysia has consistently recorded a trade surplus of about 5 billion Euros with the EU over the same period. Bilateral trade in services was approximately 4.5 billion Euros in 2008.

Sourcehttp://www.delmys.ec.europa.eu/en/EU-Malaysia%20FTA.html

10


The future EU-Malaysia Free Trade Area will provide a long-term, stable legal framework for the relations between two equal partners and remove tariffs on the near totality of goods opening trade in services


JABATAN PERDANA MENTERI PERFORMANCE MANAGEMENT AND DELIVERY UNIT

SWITCH-Asia in Full-support of Sustainable Consumption and Production (SCP)

Sustainable Consumption and Production (SCP) is an attempt to reconcile the increased demand for goods and services that respond to basic needs and bring a better quality of life, while minimising the use of natural resources, toxic materials and emissions of waste and pollutants over the life cycle, in order not to jeopardise the needs of future generations. Materials, Water and Energy are the three key elements. Sustainable Production concerns the supply side, focusing on the economic, social and environmental impacts of production processes; while Sustainable Consumption addresses the demand side, focusing on consumers’ behaviour and choices in use of goods and services, i.e. demand for products that environmentally friendly both in their production and in their use, as well as by promoting a sensible consumption behaviour, avoiding spillage and waste.

In the last decade, a vast array of good practices on SCP have been developed and demonstrated. It allows the issues surrounding climate change to be viewed through a broader lens than has been the case in recent years. The SWITCH-Asia Programme aims to take this one step further by attempting to integrate the two sides of business: production activities on the supply side, and consumption activities on the

demand side. The projects funded under the Programme should make use of “replication mechanisms” to scale-up existing good practices. Replication can be achieved through multi-stakeholder approaches, for example by building partnerships with business service providers and actors along the supply chains. Involving policymakers and developing enabling policy environments for SCP are equally important.

The SCP Glossary

Marrakech ProcessThe Marrakech Process is a global and informal multi-stakeholder process that supports SCP policies and capacity building, and provides inputs for the elaboration of a 10-Year Framework of Programs on SCP (10YFP). Launched in 2003, in response to Chapter III of the Johannesburg Plan of Implementation, (JPOI) the process inherits its name from the host city of its first meeting. The key objective of the Marrakech Process is to promote and drive the development of policies and projects, providing support for governments, the private sector and others who need it in implementing national or regional SCP activities. A second objective is to provide inputs for the elaboration of the 10-Year Framework of Programmes on SCP, which will be reviewed at CSD-19 in 2011, and to which governments could voluntarily commit themselves.

To achieve the above objectives, the Marrakech Process has developed various mechanisms: • international and regional expert meetings (three

international and 22 regional have been hosted)• national roundtables (eight have been organised)• seven task forces that focus on specific SCP

areas• an Advisory Committee• special dialogues with major groups such as

business and industry, and NGOs• cooperation with development and UN agencies

Objectives of 10YFPAmong the objectives which could be considered as guiding the elaboration and follow-up of the 10YFPare the following:1. Support the two other overarching objectives of the JPOI by :

- mainstreaming the sustainable use and management of natural resources in the decision-making process of governments, private sector and civil society organisations; and- scaling and speeding up progress towards meeting the relevant MDGs (includingMDG7), raising living standards in developing countries in a sustainable manner;

2. Support existing multilateral environmental agreements including climate change mitigation and adaptation measures;3. Decouple economic growth from environmental degradation (e.g., increase resource and energy efficiency, change unsustainable consumption and production patterns, dematerialise, move to a low-carbon economy);4. Stimulate demand for and supply of sustainable products and services in the market which would involve creation of new economic activities and productive jobs; within the carrying capacity of ecosystems;5. Promote more sustainable lifestyles, cities and societies;6. Enhance social development through investment in people and communities.

Source: Proposed Inputs to CSD on A 10 Year Framework of Programmes on Sustainable Consumption and Production (10YFP ON SCP), based on comments received from the Marrakech Process Advisory Committee on 23 October 2008



Life Cycle To understand the full environmental impacts of products and services, it is necessary to adopt Life Cycle Thinking (LCT), which is an important aspect of the SCP perspective. Through LCT it is possible to account for the impacts generated along each stage of the production and consumption process of a product or service - from cradle-to-grave. This includes primary resource extraction, primary materials processing, design and production, packaging, distribution, retail, use phase and finally the end-of-life stage, shown in the figure of Product Life-Cycle from an SCP perspective.

By adding together and comparing the impacts of the different stages the life cycle approach gives a clear picture of both the overall environmental “footprint” of products and services, as well as the hot-spots where the highest impacts occur. Life-cycle thinking suggests that energy consumption and emissions is not only about our

Carbon Leakage

For significant contribution to mitigate climate change, we must reduce greenhouse gas emissions across the world. A comprehensive new carbon accounting systems which fully acknowledge the role of consumers in this challenge can contribute to effective governance of global climate change. In the current emission accounting systems, this ‘virtual carbon’ embodied as it is in products, is not visible. The figure illustrates the consumption-based carbon accounting of countries.

use of oil and electricity, it is also about the energy embodied in all the raw materials consumed, the energy used to process these materials, and the energy used to dispose the waste after our products have served their purpose. Therefore, energy efficiency is not only about making cars run farther on the litre and light bulbs consume less electricity, it is also about saving the resources used to produce cars and light bulbs, the energy needed to dismantle them again, reuse of the recyclable materials, and disposal of the end waste.

Source: SWITCH-Asia SCP Booklet

Carbon leakage describes the phenomenon of increased emissions in one region resulting from an emissions constraint introduced in another (such as through national policy). This causes changes in global value chains and alters the flow of international trade in carbon-intensive products. Whilst a policy might be seen to be successful nationally, carbon leakage will reduce its ultimate effectiveness and impede any global reduction of emissions. For effective carbon leakage management, more information is needed about the emissions embodied in products, more focus is needed on ‘hot-spots’ along the global value chains, and emissions have to be reduced within national boundaries.

This article is taken from the SWITCH-Asia SCP booklet and bimonthly newsletters. For complete information, please log on to the www.switch-asia.eu.


energy efficiency is not only about making cars run farther on the litre and light bulbs consume less electricity, it is also about saving the resources used to produce cars and light bulbs, the energy needed to dismantle them again, reuse the recyclable materials, and dispose of the end waste.


Life Cycle To understand the full environmental impacts of products and services, it is necessary to adopt Life Cycle Thinking (LCT), which is an important aspect of the SCP perspective. Through LCT it is possible to account for the impacts generated along each stage of the production and consumption process of a product or service - from cradle-to-grave. This includes primary resource extraction, primary materials processing, design and production, packaging, distribution, retail, use phase and finally the end-of-life stage, shown in the figure of Product Life-Cycle from an SCP perspective.

By adding together and comparing the impacts of the different stages the life cycle approach gives a clear picture of both the overall environmental “footprint” of products and services, as well as the hot-spots where the highest impacts occur. Life-cycle thinking suggests that energy consumption and emissions is not only about our

Carbon Leakage

For significant contribution to mitigate climate change, we must reduce greenhouse gas emissions across the world. A comprehensive new carbon accounting systems which fully acknowledge the role of consumers in this challenge can contribute to effective governance of global climate change. In the current emission accounting systems, this ‘virtual carbon’ embodied as it is in products, is not visible. The figure illustrates the consumption-based carbon accounting of countries.

use of oil and electricity, it is also about the energy embodied in all the raw materials consumed, the energy used to process these materials, and the energy used to dispose the waste after our products have served their purpose. Therefore, energy efficiency is not only about making cars run farther on the litre and light bulbs consume less electricity, it is also about saving the resources used to produce cars and light bulbs, the energy needed to dismantle them again, reuse of the recyclable materials, and disposal of the end waste.

Source: SWITCH-Asia SCP Booklet

Carbon leakage describes the phenomenon of increased emissions in one region resulting from an emissions constraint introduced in another (such as through national policy). This causes changes in global value chains and alters the flow of international trade in carbon-intensive products. Whilst a policy might be seen to be successful nationally, carbon leakage will reduce its ultimate effectiveness and impede any global reduction of emissions. For effective carbon leakage management, more information is needed about the emissions embodied in products, more focus is needed on ‘hot-spots’ along the global value chains, and emissions have to be reduced within national boundaries.

This article is taken from the SWITCH-Asia SCP booklet and bimonthly newsletters. For complete information, please log on to the www.switch-asia.eu.


energy efficiency is not only about making cars run farther on the litre and light bulbs consume less electricity, it is also about saving the resources used to produce cars and light bulbs, the energy needed to dismantle them again, reuse the recyclable materials, and dispose of the end waste.


Overcoming Barriers in Bioenergy Markets

The barriers and opportunities for solid biomass trade are identified and discussed in the EUBIONET III project with views obtained from 18 European Union countries. The summary of the discussion are as shown in the table below:

European bioenergy networks i.e. AFBnet (Solid biofuels), Waste for Energy (Biogas) and NTB (Liquid biofuels) were established in 1995 by the European Commission to promote the utilisation of bioenergy in Europe. These networks have been integrated together under the cluster EUBIONET - European Bioenergy Networks as of the beginning of the year 2002. The EUBIONET will continue and consolidate the systems of communication, which have been set up since the creation of the networks. The major aim is to share knowledge and experience, spread of information, transfer of knowledge and know-how in the bioenergy sector. Besides that, also to detect barriers and define strategies to overcome them and to promote contacts between operators, planners and public organisations at all levels.

Bioenergy use in EU27 in 2007 and estimation for biomass use in 2010. Eurostat, AEBIOM and Renewable Heating and Cooling Energy Technology Platform (RHC-ETP) (www.rhc-platform.org)

For more information, please refer to Solutions to overcome barriers in Bioenergy markets in Europe – D2.2: Resources, use and market analysis - VTT-R-01700-10 by Martin Junginger & Jinke van Dam of Copernicus Institute, Utrecht University, Eija Alangkas, Matti Virkkunen & Kati Veijonen of VTT, Finland.

No.

Raw material availability

Lack of financial policy support

Unfair competition with fossil fuels

Logistic barriers

Sustainability criteria

Varying biomass fuel quality

1

2

3

4

5

6

Barrier Possible solutions

a) Increase utilisation of new feedstocks.b) Increase import from regions with abundant

feedstock supply.

Long-term and stable policies to increase market confidence and trigger investments in renewable biomass production and trade.

Explore possibility whereby biomass fuels can also be exempted from VAT, like fossil fuels.

a) Strategically built biomass fuel mills.b) Optimisation of logistic chain with effective

planning.c) In-situ pre-processing of biomass fuels at

feedstock source.

Explore utilisation of biomass which does not threaten the sustainability criteria.

Standardisation of international certification system.



The 2nd SWITCH-Asia Networking Meeting in Beijing: An exhilarating and enriching experience.The 2nd SWITCH-Asia Networking Meeting was held in Beijing Yuyang Hotel. This event was hosted by the SWITCH-Asia Network Facility, implemented by the UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (SCP) and Wuppertal Institute for Climate, Environment and Energy. The activities of this event started in the midday of 12th of October 2010 and ended on 14th of October 2010.

The SWITCH-Asia Network Facility works with the sustainable consumption and production (SCP) projects funded by the European Union (EU) in the SWITCH-Asia Programme. It facilitates the sharing of knowledge and disseminates successful project practices and intensifies networking between its Asian and European Partners. The SWITCH-Asia Networking Meeting is an annual event that provides the platform for all SWITCH-Asia project stakeholders to gather and exchange best practices from their project management experiences, while presenting a good opportunity for possible collaborations among projects to create greater impact via replication of SCP practices.

There are a total of 30 on-going SWITCH-Asia projects approved under previous two calls for proposals. 120 people comprising of SWITCH-Asia projects’ promoters & partners, EU-China delegation representatives, Asia member states representatives, SWITCH-Asia experts and, the SWITCH-Asia Network Facility experts. The EU-Malaysia Biomass Sustainable Production Initiative (Biomass-SP) project was represented by Ms. Lee Jia Jing, Project Manager and Ms. Puvaneswari Ramasamy, Technical Coach.

From the two and a half days of interactive sessions via the World Café discussions, participants were exposed to various inputs and instruments to enhance the capacity of project promoters to manage their projects more effectively. Some of the very interesting and useful topics discussed are as followed:

1. Engaging Service Providers in Promoting Sustainable Consumption and Production (SCP) opportunities. This session focused on tackling the challenges faced by businesses faced in the SCP services and how solutions were generated with showcasing successful examples.

2. Engaging Supply Chains in Promotion of SCP opportunities. Projects promoters were enlightened in promoting their projects via sustainable chain management and the World Café discussion had identified some brilliant good entry points for such projects.

3. Towards a Better and Effective Communication of Sustainability Messages. Communication is a crucial agenda of all SWITCH-Asia projects and strategic communications is nonetheless integral part in project implementation to reach out to targeted groups and stakeholders.

4. Getting SCP on the Policy Agenda. To ensure that the SCP management is well-spread in any country, policy intervention is of extreme importance. This session discussed on communication with the policy-makers and how we can utilise some of the suggested strategies in each individual projects.

5. Making an Impact. The ultimate goal of every project promoter is to make an impact with the projects they undertake. A systematic approach to think about impact using impact chain thinking is introduced on how desired impacts link and influence with one and another.

A panel discussion themed Stakeholder Reflection on their Role in Stimulating SCP in Asia was conducted in the Podium Debate style to wrap up the Networking Meeting. The panellists are prominent figures in both European and Asian network spreading from policy intervention to consumer outreach, and the main focus of the discussion was on effective replication of SCP. The Questions and Answer session was very thought-stimulating, benefiting members of the floor.

All in all, the 2nd SWITCH-Asia Networking Meeting was a successful event that met its objectives with many contacts established and ideas shared. Project stakeholders are looking forward to the next annual meeting.

Ms. Puvaneswari, Project Technical Coach, paying attention to an enquiry by the Vietnamese SWITCH-Asia project stakeholder.

Project shopping at SMART Cebu booth.



The 2nd SWITCH-Asia Networking Meeting in Beijing: An exhilarating and enriching experience.The 2nd SWITCH-Asia Networking Meeting was held in Beijing Yuyang Hotel. This event was hosted by the SWITCH-Asia Network Facility, implemented by the UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (SCP) and Wuppertal Institute for Climate, Environment and Energy. The activities of this event started in the midday of 12th of October 2010 and ended on 14th of October 2010.

The SWITCH-Asia Network Facility works with the sustainable consumption and production (SCP) projects funded by the European Union (EU) in the SWITCH-Asia Programme. It facilitates the sharing of knowledge and disseminates successful project practices and intensifies networking between its Asian and European Partners. The SWITCH-Asia Networking Meeting is an annual event that provides the platform for all SWITCH-Asia project stakeholders to gather and exchange best practices from their project management experiences, while presenting a good opportunity for possible collaborations among projects to create greater impact via replication of SCP practices.

There are a total of 30 on-going SWITCH-Asia projects approved under previous two calls for proposals. 120 people comprising of SWITCH-Asia projects’ promoters & partners, EU-China delegation representatives, Asia member states representatives, SWITCH-Asia experts and, the SWITCH-Asia Network Facility experts. The EU-Malaysia Biomass Sustainable Production Initiative (Biomass-SP) project was represented by Ms. Lee Jia Jing, Project Manager and Ms. Puvaneswari Ramasamy, Technical Coach.

From the two and a half days of interactive sessions via the World Café discussions, participants were exposed to various inputs and instruments to enhance the capacity of project promoters to manage their projects more effectively. Some of the very interesting and useful topics discussed are as followed:

1. Engaging Service Providers in Promoting Sustainable Consumption and Production (SCP) opportunities. This session focused on tackling the challenges faced by businesses faced in the SCP services and how solutions were generated with showcasing successful examples.

2. Engaging Supply Chains in Promotion of SCP opportunities. Projects promoters were enlightened in promoting their projects via sustainable chain management and the World Café discussion had identified some brilliant good entry points for such projects.

3. Towards a Better and Effective Communication of Sustainability Messages. Communication is a crucial agenda of all SWITCH-Asia projects and strategic communications is nonetheless integral part in project implementation to reach out to targeted groups and stakeholders.

4. Getting SCP on the Policy Agenda. To ensure that the SCP management is well-spread in any country, policy intervention is of extreme importance. This session discussed on communication with the policy-makers and how we can utilise some of the suggested strategies in each individual projects.

5. Making an Impact. The ultimate goal of every project promoter is to make an impact with the projects they undertake. A systematic approach to think about impact using impact chain thinking is introduced on how desired impacts link and influence with one and another.

A panel discussion themed Stakeholder Reflection on their Role in Stimulating SCP in Asia was conducted in the Podium Debate style to wrap up the Networking Meeting. The panellists are prominent figures in both European and Asian network spreading from policy intervention to consumer outreach, and the main focus of the discussion was on effective replication of SCP. The Questions and Answer session was very thought-stimulating, benefiting members of the floor.

All in all, the 2nd SWITCH-Asia Networking Meeting was a successful event that met its objectives with many contacts established and ideas shared. Project stakeholders are looking forward to the next annual meeting.

Ms. Puvaneswari, Project Technical Coach, paying attention to an enquiry by the Vietnamese SWITCH-Asia project stakeholder.

Project shopping at SMART Cebu booth.



Biomass-SP in the News



Future Project Activities in 2011Biomass-SP will be conducting a series of capacity building programmes (CBPs) through 2011 and 2012. The CBPs in the agenda are as follow:

CBP1: Biomass Technologies for Uptaking by SMEsPresentation by local research institutions and universities (RIUs) on their ready to be commercialised biomass technologies/R&Ds to encourage commercialisation between local RIUs and EUM-BENP SMEs.

CBP2: Biomass and Clean Development Mechanism (CDM)

Introducing the concept of CDM to the EUM-BENP SMEs and coach them how to reap benefits via CDM co-financing facility for renewable energy projects, fuel switching, energy efficiency, methane capture (biogas and municipal solid waste projects), reforestation projects etc.

CBP3: Concepts, Trends, Perspectives in Environmental Performance (Carbon Foot Print) on Sustainable Consumption & Production (SCP)

Introduction of the Carbon Foot Print concept to local SMEs linking to both business and environmental concerns, and methodology of carbon measurement. This preparatory CBP is useful for companies who are keen to export to the EU.

CBP4: Optimising & Benchmarking the Economic Value of Biomass & Developing a Biomass Supply Chain

Conduct studies and collect data to distinguish the economic value and potential on biomass in various applications.

CBP5: Success Stories of Biomass Conversion / SCP Projects

Sharing of best practices in the Asia and EU region on bio-energy projects and sharing latest perspectives on biomass boom in Europe as coal substitution in power plant projects for addressing global climate change mitigation efforts.

CBP6: Financing / Funding Opportunities - Grant Applications by Malaysian Government Agencies

This CBP provides information on the various funding options and grant schemes by ministries under different agencies, and also methodology to tap these opportunities in line with the 10th Malaysia Plan. Target to invite Ministry of Science, Technology & Innovation (MOSTI) / Ministry of Agriculture’s (MoA)

Techno Fund, Malaysia Technology Development Corporation (MTDC)’s commercialisation of R & D funds, Cradle Fund 500, Malaysia Life Science Fund (VC Fund), Malaysia Debt Ventures Bhd (debt financing based on project and non-collateral approuch, Green Technology Financing Scheme (soft loan for green technology projects), SME Bank (soft loan for SMEs development), grants offered by BiotechCorp for biotech projects certified with BioNexus status.

CBP7: Policy Intervention via Economic Instruments for Enhancement of Local Biomass Industry

Targeting at government departments in defining economic instruments for developing the biomass industry.

CBP8: EU Market Access Opportunities for Biomass Products in Meeting EU Green Supply Chain / Green Procurement Opportunities

Introduction of environmental performance standards required by the EU countries for import of specific biomass-related products. Will also seek co-operation from EU Trade Counsellors based in Malaysia such as UK Trade & Investment, Italy Trade Commission Office etc.

CBP9: Pelleting Technology With abundance of biomass available in

Malaysia, pelleting is a promising industry with huge EU market demand for biomass pellets (inclusive of briquettes, palm kernel shell, empty fruit bunch and rice straw/husk). This CBP addresses the technological concern of the solid bio-energy industry as well as market development opportunities from the EU countries.

Other than the CBPs, the project will also organise a delegation to the 19th European Biomass Conference and Exhibition, 6 - 10 June 2011 in Berlin, Germany.

Office of the Biomass-SP ProjectNo. 20, Jalan Diplomatik, Presint Diplomatik, 62050 Putrajaya, Malaysia.

T. +603-8884 8882F. +603-8884 8828E. [email protected]

www.b iomass-sp .ne t



Documents

Project Newsletter - biomass-sp.netbiomass-sp.net/wp-content/uploads/2011/11/Biomass... · Malaysian biomass producers to be not only ... expertise and experiences. ... Khairudin