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20140312 dato abj@ukti smartcitiesseminar_kl

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  • 1. 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 1
  • 2. 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 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 2
  • 3. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 3
  • 4. 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, 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 4
  • 5. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 5 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
  • 6. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 6 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).
  • 7. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 7 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).
  • 8. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 8 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).
  • 9. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 9 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
  • 10. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 10 NON-APPLICABILITY OF “POLLUTERS-PAY” PRINCIPLE
  • 11. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 11 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
  • 12. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 12 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?
  • 13. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 13 REGULATORY MEASURE Waste Segregation, Separation or Sorting @Source
  • 14. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 14 THE FIRST STEP FORWARD: SEGREGATION @SOURCE
  • 15. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 15 THE SECOND STEP FORWARD: HOUSEHOLD COMPOSTING 15
  • 16. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 16 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
  • 17. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 17 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
  • 18. UK Trade & Investment Smart Cities Seminar 18 PROPOSED SCHEME by INDIFFERNT CONSUMERS-PAY PRINCIPLE GOVERNMENT CONSUMERS ε- NP2 O •Non-Profit + •Non-Private Org. RETAILERS WASTE EXCHANGER MANUFACTURING INDUSTRIES W2E COMPANY LANDFILL OPERATOR STORAGE SALES OF GOODS CONTAINING RECYCLED MATERIALS SALES OF GREEN ELECTRICITY •Soft Loan •Study Grant •R&D •Policy Studies •Education •Training •Awareness •Investment Return old items Receipt of Credit Points Pay Levy or Redeem Credit Points Return of Levy Annual Policy Review Performance Report Purchase of Goods GRID TO THE WASTE TO MATERIALS Commission 12 March 2014 InterCon KL
  • 19. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 19 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
  • 20. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 20 COMPARATIVE APPROACH BY COUNTRY Polluters Litterbugs Proposed Approach for Malaysia CONSUMERS Enforcement eg: Singapore Polluters Pay Principle/Take-Back Policyeg: Germany INDUSTRIES
  • 21. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 21 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
  • 22. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 22 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”;
  • 23. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 23 …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
  • 24. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 24 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
  • 25. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 25 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. 25
  • 26. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 26 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
  • 27. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 27 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.
  • 28. 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar 28 TERIMA KASIH ‫شكر‬ (syukran) 谢谢 (xìe xìe) Thank You Merci Gracias Спасибо
  • 29. Prof Dato’ Ir Dr A Bakar Jaafar, PEng, FIEM, FASc, KMN, JSM, DPMP BE (Hons) (Newcastle), MEn (Miami), PhD (Hawaii) Professor, UTM Perdana School & [1 June 2013-31 May 2016] (www.utm.my) Co-Chair UTM Ocean Thermal Energy Centre ( www.otec.utm.my) 29 Chairman of AECCOM (www.aeccom.org.my) 12 March 2014 InterCon KL UK Trade & Investment Smart Cities Seminar