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  • Others
1 October 2019

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  • Malaysia

KUALA LUMPUR (Oct 1): The government is looking to review its carbon emissions commitments under the 2016 Paris Agreement.

Speaking at CIMB Group Holdings Bhd’s The Cooler Earth Sustainability Summit, Minister for Energy, Science, Technology, Environment and Climate Change Yeo Bee Yin said the government would be reviewing its national determined commitment under the Paris Agreement.

“Our national determined commitment [under the Paris Agreement] is a 45% reduction in carbon emissions intensity relative 2005. This means by 2030, we want to reduce our carbon emission intensity, which means carbon emissions relative to gross domestic product, to 2005 levels,” Yeo said.

The review will take place at the next United Nations Framework Convention on Climate Change next year.

As of today, Malaysia has reduced its carbon emissions intensity rate to 33%. The minister noted that Malaysia is at a comfortable level with its ability to meet the 45% target, and that the emissions target could be raised.

With regard to the global fight against climate change, Yeo emphasised that while it is everyone’s responsibility to combat climate change, there must be common but differentiated responsibilities.

“This means that more developed countries have to play their part in assessing climate change as well. If you want less developed countries to do more, you have to give them the assistance to do so,” she said.

Malaysia entered the Paris Agreement in 2016.

  • Renewables
1 October 2019

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  • Malaysia

LETTER | The pre-dawn strike Sept 14 by twenty-five drones and missiles on Saudi Arabia’s Abqaiq and Khurais oil facilities, owned by state-run oil company Saudi Aramco, severely disrupted nearly half the kingdom’s estimated output of 9.7 million barrels and five percent of global production and sent oil price soaring.

The 1970s and 2007/2008 oil price hikes had triggered discussions on the need for Malaysia to consider investing in nuclear power.

After the oil crisis of the 1970s with the first oil shock triggered by the embargo by Opec in 1973-1974 increasing oil prices four-fold from US$3 to US$12 and the second oil shock prompted by the Iranian Revolution of 1979 and the 2007/2008 unprecedented oil price hike up to nearly US$145 (RM 513) per barrel, many countries, including France and S Korea amongst others, had turned away from a high reliance on oil and made investments in alternative sources of energy including nuclear power.

Malaysia’s high reliance of fossil fuel for power generation; more than 50 percent on coal, more than 40 percent on natural gas, five percent on hydro and remaining on other sources including renewable energy plus its high importation of coal of more than 60 percent from Indonesia and more than 20 percent from Australia poses a risk for its energy supply and security.

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Globally, this fossil fuel economy has caused the escalation of CO2 emissions. This increasing rise in CO2, primarily through fossil fuel burning has caused an increase in the Earth’s surface temperature, or global warming, and disruption in or the destabilising of Earth’s climate system or climate change creating environmental, social, health, economic and political chaos.

In 2008, Malaysia, too, explored nuclear energy as a long-term energy source for the nation and this was incorporated in Budget 2009 as part of the government’s long-term strategy to diversify the nation’s sources of energy as well as to enhance Malaysia’s energy security and mitigate climate change.

Plans to build two 1000 MWe nuclear power reactors, with the first unit in operation by 2021, were introduced in 2010, with the prerequisite of  four conditions – there must be public acceptance of the project, Malaysia must ratify the relevant international treaties, the government must ensure that the correct regulatory framework is put in place and approvals for plan sites including from the local populace must be obtained.

It is anticipated that construction and operation of the nuclear power reactors will have significant impact on Malaysia’s economy, that during construction phase a GNI contribution of RM0.2 billion will be derived from the creation of 2,600 jobs and once operational, the twin unit reactors of 2GWe will generate GNI amounting to RM1.6 billion per year from the electricity generated

And to plan for the introduction of nuclear power in Malaysia, a Nuclear Energy Planning and Implementation Organisation (Nepio)- the Malaysia Nuclear Power Corporation (MNPC) was established in January 2011 under the Prime Minister’s Department.

The Auditor-General’s Report of 2018 outlined that since its formation in 2011 till 2018, the MNPC had produced four studies and organised or implemented three (activities) utilising developmental grant of RM42.51 million.

The four studies include the Nuclear Power Programme Development Study, the Nuclear Power Project Development Study (Feasibility Study), the Law and Regulation Study and the Comprehensive Plan and Strategies for Public Communications on Nuclear Energy.

Furthermore, the Auditor-General’s report had highlighted that the International Atomic Energy Agency (IAEA) has recognised seven employees of the MNPC as subject matter experts who had been invited to offer advice to the IAEA and selected member states interested to introduce a nuclear power programme. Thus it is evident that skills built up during the past eight years have contributed to the competency and professionalism of the team at MNPC

The auditor’s report had also recommended for the government to provide an opportunity for the MNPC to present/table their findings of all the studies to the Cabinet in view of the importance of alternative energy sources for long-term electricity supply for the country.

Instead, Putrajaya has decided to shut down the MNPC (their last day was yesterday) for reasons best known to them and not clearly conveyed to the MNPC nor the public.

This despite the fact that the MNPC had trained its officers who are now knowledgeable and experienced regarding the techno-political aspects of nuclear power as well as nuclear diplomacy which in general are not attributes nor the experience of researchers whose focus is primarily technology development. Thus communications, diplomacy and skills in negotiations are the forte of MNPC.

Hence, even if Malaysia is not planning to invest in a nuclear power programmes (NPP) or build nuclear power plants, a wide and extensive expertise in nuclear technology and nuclear power covering not just technology but most importantly Pestle (Politics/Policies, Enery+Economics+Environment, Science, Sociology, Technology, Legal and Ethics) must be developed and nurtured amongst Malaysians to get us ready for international meetings, diplomacy and negotiations in order to be competent, skilled and tactful when meeting and negotiating in the global arena.

Thus, it is within this context that I strongly recommend for the Minister of Energy, Technology, Science, Climate Change and Environment to reverse and revise the decision to shut down the MNPC.

This is to ensure that these critical skills and competency invested and built over many years are not lost and will not put Malaysia at a disadvantage especially in nuclear politics and in particular if further oil shocks and energy crises require Malaysia to plan for nuclear power.

  • Energy Economy
1 October 2019

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  • Malaysia

KUALA LUMPUR: CIMB Bank Bhd today launched its renewable energy financing for micro, small and medium enterprises (SMEs) in Malaysia, part of its RM15-billion SME allocation for 2019-2020 and CIMB Group’s sustainability commitment.

The programme was launched at CIMB’s The Cooler Earth Sustainability Summit, witnessed by Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin here.

CIMB Bank has allocated RM100 million to the CIMB SME Renewable Energy Financing programme.

One of the first initiatives under this programme is to provide smaller SMEs with full financing to cover the cost of solar photovoltaic (PV) systems and installation on their rooftops.

The financing initiative offers packages from as low as RM20,000 and up to RM1 million, in support of the government’s Net Energy Metering (NEM) scheme, whereby excess energy can be exported to the national grid.

CIMB Bank said SMEs need to first obtain the NEM approval from Sustainable Energy Development Authority (SEDA), to be eligible for CIMB’s Renewable Energy Financing.

The financing initiative provides a practical solution to enable even the smaller and micro SMEs to purchase solar PV systems to save on their electricity bills, and contribute to planet earth’s well-being.

“With the CIMB Renewable Energy Financing, we are pleased to be able to incorporate environmentally friendly policies into our commitment to the SME sector.

“Our planet is at a tipping point, from an environmental, economic and social (EES) perspective, and we must take action now.

“To that end, members of the banking and finance industry can and must leverage on our resources and network to catalyse real lasting change across these fronts, and to begin pursuing profits with a purpose,” said CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz.

Apart from the SME Renewable Energy Financing, CIMB Group has also taken other steps to fulfill its commitment to Sustainability, a key pillar in its current growth strategy.

These include launching its Group Sustainability Policy and Sustainable Financing Policy to guide decisions on operations and lending policies to ensure positive EES impact.

Besides that, CIMB is one of 30 founding member banks and the only Asean banking group that helped draft the UNEP-FI’s Principles of Responsible Banking, currently supported by 130 signatory banks globally.

On September 30, 2019, CIMB also announced that it had successfully priced its US$680 million SDG bond, the proceeds of which will be channeled to various impactful sectors that serve seven of UN’s Sustainable Development Goals (SDG’s) that CIMB Group has committed to.

The two-day Cooler Earth Sustainability Summit, held on October 1 to October 2, 2019, is CIMB’s first-ever regional platform to raise awareness on social and environmental risks and opportunities within the context of business and finance in shaping a sustainable economy.

It was organised in collaboration with knowledge partners, WWF and sustainability consultancy, Impacto and saw a gathering of more than 1,000 business leaders, financiers, investors, policy-makers and regulators who engaged openly in a transparent and constructive forum aimed at catalysing action from all stakeholders to begin or enhance their sustainability journey by embedding EES considerations in their strategies.

By the end of day one, delegates had gained compelling insights and ideas on the role of business in catalysing sustainable development.

There was also consensus on ‘the urgent need to mobilise action’ to respond to climate emergency and manage businesses’ social and environmental impact better.

  • Energy Cooperation
1 October 2019

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  • Singapore

Singapore based independent electricity retailer iSwitch, one of the city-state’s top 3 retailers and its largest green retailer, has pledged its support to be a foundation off-taker for the solar energy produced by the proposed Sun Cable project. The megaproject is set to source 10GW of solar energy from a sunburnt spot near Tennant Creek, Northern Territory (NT) and deliver it to Singapore via 3,750km undersea High Voltage Direct Current (HVDC) cable. 

The pledge follows last week’s announcement by Aussie tech billionaire and co-founder of Atlassian Mike Cannon-Brookes that he intended to help fund the megaproject. “I’m backing it,” said Cannon-Brookes at the United Nations Climate Action Summit in New York. Clearly, the outspoken billionaire’s support of the project has inspired attention and invigorated support for the $25 billion project. 

With nearly 100,000 electricity customers in Singapore, iSwitch is near the canopy of Singapore’s electricity tree. Importantly, iSwitch has no direct generator ownership, meaning it is in pole position to be a foundation customer of the Sun Cable project. 

Over 15% of iSwitch’s customers have already committed to 100% carbon neutrality. iSwitch is one of the only retailers in Singapore who can offer 100% green electricity to both commercial and residential customers. 

The company’s pledge is in line with its desire to maintain its position as the largest green retailer in the small island nation, a desire already bolstered earlier this year by the absorption of fellow green retailer ES Power’s customer base into iSwitch, further strengthening the company’s foundation for renewable growth.   

“iSwitch fully supports this ambitious project and looks forward to celebrating a power purchase agreement, allowing the project to become commercial and bankable,” said iSwitch Chief Commercial Officer, Andrew Koscharsky, “We provide long term commitment on behalf of our significant customer base in Singapore. This project will bring countries together, stabilise electrical costs, and provide a stronger sustainability platform for Singapore.” 

Due to its massive size, the Sun Cable Project has given itself a financial close date in 2023, a prospect looking more achievable by the day as investors rush to jump on board. Cannon-Brookes has not yet specified how much his family fund, Grok, plans to invest in the Sun Cable project. Still, the coup of gaining significant pledges on each end of the project in a single week is sure to accelerate the train of willing renewable investors. 

  • Energy-Climate & Environment
1 October 2019

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  • Vietnam

Vietnam’s Mekong Delta is an area that is extremely vulnerable to climate change. Residents are being forced to move after their houses are flooded and collapse into the Delta. Vietnam is just one example of forced human displacement due to climate change.

Scientists estimate that sea levels could rise 5 or 6 feet by 2100. The recent IPCC climate report on oceans and the cryosphere made similar estimates and listed people already displaced and affected by the changing climate. These sea level rises will affect anyone in coastal regions or waterways like the Mekong Delta.

Vietnam is extremely vulnerable to climate change, for economic and geographic reasons. The Mekong Delta is the center of agriculture for the country and the region. It’s also home to 20% of the population of Vietnam or about 18 million people. It’s vulnerable to the changing climate because of its low-lying geography, river structure and coastal exposure. Government officials were finding up to 100 meters lost to erosion in some areas.

Mekong Delta residents call it “scary” to live on the riverbank. Area residents are leaving to find other ways to make a living and escape the changing delta. A study estimated up to 15% of those that fled did so due to climate change. Not only are people fleeing due to erosion and rising seas, but the salinity of water has made existing agriculture difficult.

“Drastic” weather changes affect daily life and work. Some that were working in agricultural regions found it too difficult to do so due to the changed conditions. They moved to cities and found alternate work.

Changes in the Mekong Delta echo those described in the IPCC report, including the vulnerability of the affected residents. The majority of those affected by climate change are low income, living on agriculture lands that provide their incomes. As those areas change due to climate change, their income decreases and it becomes difficult to find alternative work. The government is trying to help by providing relocation assistance to affected families.

Other countries around the globe are feeling the effects of climate change. Last week, a town in Italy was evacuated due to an impending glacier moving. In response to the UN Climate Summit and Climate Strikes, countries are beginning to make changes. But climate change is here and affecting people.

  • Others
1 October 2019

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  • Vietnam

The Government of Vietnam has granted approval to global power company AES for the development of a new 2.2GW combined cycle gas turbine (CCGT) power plant.

The new Son My 2 plant will be developed in the south-central province of Binh Thuan, Vietnam.

AES president and CEO Andrés Gluski said: “AES is committed to the country’s economic growth and energy transition through the development of gas and renewable infrastructure.

“We appreciate that the Government of Vietnam has selected us to advance this critical project for the country.”

Financial close for the plant is expected to be achieved in 2021. The facility is slated to commence commercial operations in 2024.

Once operational, electricity generated by the power plant will be purchased by the Government of Vietnam under a 20-year contract.

The new CCGT plant is expected to complement the company’s investment plans in the gas infrastructure in Vietnam, including its previously announced 450TBtu Son My LNG terminal that was approved by the government in August.

Both the plant and gas terminal infrastructure are expected to play a crucial role in shaping Vietnam’s energy future by expanding the energy mix with imported LNG while meeting the increasing demand of the country’s sustainable and affordable electricity.

Approval for the CCGT plant and the LNG terminal will enable AES to move forward for obtaining necessary permits and associated project agreements.

In June, AES’ subsidiary AES Alamitos started construction on a 400 megawatt-hour (MWh) battery-based energy storage system in Long Beach for Alamitos Energy Center (AEC).

The facility will ensure power flexibility for Southern California Edison (SCE) customers.

  • Eco Friendly Vehicle
30 September 2019

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  • Indonesia

On 8 August 2019, the same day that Jakarta, Indonesia’s capital city, was reported by Jakarta Post, a local newspaper, as the city with the worst air pollution in the world, President Joko Widodo (commonly known as President Jokowi) promulgated the unprecedented Presidential Regulation No. 55 of 2019 concerning the Acceleration of Battery Electric Vehicle (“BEV”) Programs for Road Transportation (“Presidential Regulation No. 55/2019” or “Regulation”). The Regulation was enacted and became effective 4 (four) days later on 12 August 2019.

  • Eco Friendly Vehicle
30 September 2019

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  • Indonesia

Jakarta (ANTARA) – The National Energy Council (DEN) has called on offices to set up charging stations for electric vehicles.

Electric vehicles can lower air pollution, fossil fuel consumption, and oil imports, Djoko Siswanto, DEN Secretary General noted in a statement here on Sunday.

“The rationale behind using electric vehicles is to realize a cleaner environment, curb air pollution, curtail fossil oil consumption, and lessen imports. DEN urges all electric car producers to begin production of the vehicles now,” he remarked.

To support the initiative to use electric vehicles, every office should provide electric sockets or public electric vehicle charging stations (SPKLUs) at parking lots for charging batteries.

“Every office is advised to build electric sockets at motorcycle parking lots. For motorbikes, charging a vehicle battery at home or office is sufficient. Each takes around four hours to charge and can suffice for five day trips from home to office and vice versa,” he explained.

The government issued Presidential Regulation No. 55 of 2019 on the Acceleration of Battery Electric Vehicle Program for Road Transportation that had come into effect since August 12, 2019.

Development of the domestic electric vehicle industry will be expedited in accordance with the regulation. Furthermore, it encourages incentives, charging station infrastructure development, and special electricity tariffs for battery charging, as well as environmental preservation.

The regulation also pushes for energy efficiency, security, and conservation in the transportation sector, clean energy usage, air quality improvement, and the realization of Indonesia’s commitment to lowering greenhouse gas emissions.

In the meantime, the Agency for Technology Assessment and Application (BPPT) had earlier echoed that electric vehicles would pick up steam in Indonesia, with more charging stations being set up nationwide.

The agency had held the Indonesia Electric Motor Show (IEMS) 2019 on Sept 4-7 in Jakarta to promote the use of electric vehicles in the country.

“The IEMS 2019 is initiated by BPPT to offer a broader understanding to the public in Indonesia on electric vehicles as a new form of disruptive technology,” BPPT Head Hammam Riza remarked at the opening of the exhibition in Jakarta.

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