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The Required Regulatory Measures and the Necessary
Economic Policy Instruments for the Transformation of Waste Management Services to Resource Recycling Industries in
Malaysia
by
Dato' Ir Dr A. Bakar Jaafar, PEng, FIEM, FASc
Chairman of Association of Environmental Consultants and Companies of Malaysia (AECCOM)
Professor, UTM Perdana School of Science Technology Innovation Policy www.utm.my and Co-Chair, UTM Ocean Thermal
Energy Centre (OTEC), Kuala Lumpur, Malaysia
12 March 2014 InterCon KL
UK Trade & Investment Smart Cities Seminar
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PREAMBLE: NOT TO LITTER, DO RECYCLE!
• Is it yet in the blood?• Not yet; not in practice, nor even part of the
culture in Malaysia, and the like of it!• So! What’s the solution? “… money in everyone’s pocket?” Government intervention: not only through
regulatory measures, but also the application of a number of economic & fiscal policy instruments
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CITIES that I have been to … How SmartClean?• Singapore, Hong Kong; Tokyo, Osaka, Niigata, Kyoto, Yokohama, Fukuoka, Imari,
Naha, Kumejima; Seoul, Pohang;• Newcastle, Armidale, Sydney, Wollongong, Canberra, Brisbane; Auckland, Rotorua,
Wellington, Dunedin, Christchurch;• Honolulu, Los Angeles, San Diego, San Francisco, Reno, Eugene, Seattle,
Cincinnati, Chicago, Houston, Columbus, Washington DC, Pittsburgh, New York, Lexington, Buffalo,
• Edison, Vancouver, Calgary, Winnipeg, Ottawa, Toronto, Montreal, St.Johns, Halifax, Hamilton; Beunos Aires, Rio de Janeiro;
• London, Liverpool, Manchester, Glasgow, Oxford, Cambridge, Edinburgh, Bradford, Cardiff, Brighton, Bristol, Bath, Reading;
• Paris, Strasbourg, Nancy, Geneva, Lausanne, Basel, Zurich, Munich, Hannover, Frankfurt, Bonn, Stockholm, Uppsala, Copenhagen, Rotterdam, Brussels, Rome,
• Mecca, Medina, Riyadh, Dhahran; Bahrain; Dubai, Abu Dhabi; Nairobi, Johannesburg• Karachi. Mumbai, New Delhi, Hyderabad, Chennai;• Bangkok, Phuket; Manila, Baguio City; Bali, Jakarta, Jogjakarta, Bandung, Bodor,
Surabaya, Palembang, Pekanbaru, Dumai, Medan; Hanoi, HoChiMinh, Danang; • Alor Star, Ipoh; JB, Kuala Lumpur, Kuantan, Kangar, KK, Kuching, KB, KT, Labuan,
Melaka, Penang, PJ, Putrajaya, Seremban, Shah Alam,
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OUTLINE OF PRESENTATION
1. Policy in Review
2. Proposed Policy Framework: Regulatory Measures with Appropriate Economic Instruments
3. Proposed Policy and Institutional Arrangements
4. Policy-Driven Technology Development
5. Conclusion
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1972 Statement of Malaysia at the UN Conference on Human Environment in Stockholm
In urban areas “solid waste collection was satisfactory but the disposal system was largely by controlled tipping and burning. The disposal of waste was like those in many countries, and an organized programme in this direction was needed. The local authorities in many cases were hampered by lack of trained and experienced personnel, financial resources and knowledge of the effects of health.” In rural areas, “solid wastes were buried or burnt but there was room for considerable improvement in this area.” (Malaysia, 1971:10, 12).
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The Outline Perspective Plan (2001-2010) (OPP3),
• To adopt “a comprehensive waste management policy … as well as to formulate strategies for waste reduction, reuse, and recycling.” (Malaysia, 2001:187).
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The 8th Malaysia Plan (MP) (2001-2005)
inter alia “to introduce various initiatives and appropriate economic approaches such as incentives and collection charges to reduce the amount of solid waste.”(8th MP: 550).
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EXISTING POLICY FRAMEWORK
GENERAL:
• OPP-3: waste-recycling industry;
• 8th & 9th Malaysia Plans: “Polluters-pay Principle” (PPP)?;
SPECIFIC:
• Non-Applicability of PPP; thus, the need for the “Indifferent Consumers-pay” (ICP) Principle and other economic-instruments
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NON-APPLICABILITY OF “POLLUTERS-PAY” PRINCIPLE
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OUTLINE OF PRESENTATION
1. Policy in Review
2. Proposed Policy Framework: Regulatory Measure with Appropriate Economic Instruments
3. Proposed Policy and Institutional Arrangements
4. Policy-Driven Technology Development
5. Conclusion
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LEGAL FRAMEWORK
LAW: • Solid Waste and Public Cleansing
Management Act 2007;
• Solid Waste and Public Cleansing Corporation Act 2007
SPECIFIC REGULATIONS:• Waste Segregation or Separation
@Source?
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REGULATORY MEASURE
Waste
Segregation,
Separation
or Sorting @Source
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THE FIRST STEP FORWARD: SEGREGATION @SOURCE
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THE SECOND STEP FORWARD: HOUSEHOLD COMPOSTING
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OUTLINE OF PRESENTATION
1. Policy in Review
2. Proposed Policy Framework: Regulatory Measures with Appropriate Economic Instruments
3. Proposed Policy and Institutional Arrangements
4. Policy-Driven Technology Development
5. Conclusion
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INDIFFERENT CONSUMERS-PAY (ICP) PRINCIPLE
• Those who recycle, get rewarded with “smart credit points”;
• if not, pay a certain “Blue or Green” Levy when purchasing new targeted items e.g. goods in plastic bottles or containers
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PROPOSED SCHEME by INDIFFERNT CONSUMERS-PAY PRINCIPLE
GOVERNMENT
CONSUMERS
- NP2O•Non-Profit +
•Non-Private Org.
RETAILERS
WASTEEXCHANGER
MANUFACTURINGINDUSTRIES
W2ECOMPANY
LANDFILLOPERATOR
STORAGE
SALES OF GOODS CONTAININGRECYCLED MATERIALS
SALES OF GREENELECTRICITY
•Soft Loan•Study Grant•R&D•Policy Studies•Education•Training•Awareness•Investment
Return old items
Receipt ofCredit Points
Pay Levy or Redeem Credit
Points
Return of Levy
AnnualPolicy Review
PerformanceReport
Purchase ofGoods
GRID
TOTHE
WASTETO
MATERIALS
Commission
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INDIFFERENT CONSUMERS-PAY (ICP) PRINCIPLE & STRATEGY
• Principle: Indifferent Consumers Must Pay!
• Strategy:1. Consumers to purchase new item by returning the old
one or by exchanging the goods with smart credit points; and
2. Consumers earn smart credit points by returning old items
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COMPARATIVE APPROACH BY COUNTRY
Polluters
Litterbugs
Proposed Approach
for Malaysia
CONSUMERS
Enforcementeg: Singapore
Polluters Pay
Principle/Take-Back
Policyeg: Germany
INDUSTRIES
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EXISTING POLICY FRAMEWORK
GENERAL:
• OPP-3: waste-recycling industry;
• 8th & 9th Malaysia Plans: “Polluters-pay Principle” (PPP)?;
SPECIFIC:
• Non-Applicability of PPP; thus, the need for the “Indifferent Consumers-pay” (ICP) Principle and other economic-instruments
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INSTITUTIONAL ARRANGEMENT
1. SWM Corp/Local Authorities (LAs) “… waste segregation @source … ”;
2. Ministry of Finance (MOF): “… blue-green LEVY … & SMART Credit Points”; Malaysia ReCyclable ExCHANGE;
3. Ministry of International Trade and Industry (MITI): “… Producers’ Responsibility … ”;
4. Ministry of Domestic Trade and Consumer Affairs (MODTCA/SIRIM): “…Product Eco-Labelling … ”; Ministry of Energy,
5. Green Technology and Water (MEGTW): “Very Attractive Feed-in-Tariff”;
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…INSTITUTIONAL ARRANGEMENT
6. MNRE/Department of Environment (DOE): “Trust Fund for sorted HHW …”
7. Ministry of Agriculture (MOA): Quality of Compost
8. Ministry of Natural Resources and the Environment (MNRE): “CDM Project Approval & Carbon Credit … ”;
9.Ministry of Women Affairs and Family Development (MOWAFD): Household & Public Awareness Campaigns
10. PM’s Department: Policy Directive & Coordination; KPIs by Constituency
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OUTLINE OF PRESENTATION
1. Policy in Review
2. Proposed Policy Framework: Regulatory Measures with Appropriate Economic Instruments
3. Proposed Policy and Institutional Arrangements
4. Policy-Driven Technology Development
5. Conclusion
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Envisaged Practices Drawn From the ICP-Principle
Waste generators would voluntarily sort the items to be “disposed off” into: “Toxic”, “Dry” or not perishable, and “Wet” or perishable, and deposit them, in order to earn “credit points” with equivalent cash value, at designated collection centres,
Those who gather, sort, and deposit any “toxics” at the designated centres would earn premium credit points.
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CONCLUSION
For integrated solid waste management in Malaysia to be in place, it would require at least:
• ONE Policy Directive, • ONE Awareness Campaign;• ONE Regulatory Measure; • ONE Fiscal Measure; • EIGHT Enviro-Economic Policy
Instruments
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THE EIGHT ENVIRO-ECOMOMIC POLICY INSTRUMENTS
1. Indifferent Consumers-pay Principle and Levy;
2. Recycling Reward Points;
3. Recyclables in Commodity Exchange;
4. Producers’ Responsibility;
5. Eco-Labelling;
6. Attractive Feed-in Tariff for Energy from Waste;
7. Compost Product Certification; and
8. Carbon-Credits.
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TERIMA KASIH
شكر(syukran)
谢谢 (xìe xìe)
Thank You
Merci
Gracias
Спасибо
Prof Dato’ Ir Dr A Bakar Jaafar, PEng, FIEM, FASc, KMN, JSM, DPMPBE (Hons) (Newcastle), MEn (Miami), PhD (Hawaii)
Professor, UTM Perdana School &[1 June 2013-31 May 2016](www.utm.my)
Co-ChairUTM Ocean Thermal Energy Centre (www.otec.utm.my)
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Chairman of AECCOM(www.aeccom.org.my)
12 March 2014 InterCon KL
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