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November 2008

Country Profile Malaysia

In Malaysia, frequent extreme weather events such as typhoons and flooding are on the increase. These have had little effect on the farming sector so far in that there has been no tangible change in rice yields and the location of the paddy fields has not altered. A rise in local temperatures has, however, caused problems in some highland areas, making it more difficult to grow certain types of vegetables.

Under the Kyoto Protocol, Malaysia is classified as a CDM host country. But given the strong economic growth enjoyed by the Malaysian economy in recent years, it cannot be ruled out that the country will be required to meet certain emission reduction targets under a post-2012 agreement. Malaysia is an ASEAN state; at their 41st meeting in July 2008, the ASEAN ministers agreed to focus their policy approaches on climate change, energy and food security.

Malaysia ratified the Kyoto Protocol in 2002 and has since become one of the leading CDM host countries (in September 2008, it ranked in fifth place measured according to the number of registered projects). This is largely due to its well-developed structures. The Conservation and Environmental Management Division at the Ministry of Natural Resources and Environment houses the Malaysian DNA. It oversees the National Steering Committee on Climate Change (NSCCC), which drafts and implements prevention and adaptation measures and supports the ministry in its climate change policy efforts. The National Committee on CDM (NCCDM) was established in May 2002 and is responsible for evaluation and approval of CDM projects. Technical and financial evaluation is performed by the technical committees on energy and forestry.

A set of national CDM criteria have been in force since August 2005. These include sustainability, technology transfer and provision of proof that funding is available for project implementation. Contact details, case studies, workshop reports and other information about the CDM in Malaysia are available on the Environment Ministry website.

Malaysia’s CDM potential lies in renewables (photovoltaics, water and biomass), energy efficiency in industry and combined heat and power. Its greatest potential for CDM projects involves the use of methane in energy production and its palm oil industry is one of the biggest in the world after Indonesia. In the production of palm oil, plant waste decomposes and gives off methane. A large number of the projects registered so far focus on biomass to energy activities. 


gtai CDM-Market Brief Malaysia

Further selected information:

More information on the CDM in Malaysia
Joint Communique of the 41st ASEAN Ministerial Meeting “One ASEAN at the Heart of Dynamic Asia”
Singapore Declaration on Climate Change, Energy and the Environment
International Energy Agency (IEA): Information on Malaysia
International Energy Agency (IEA): Information on ASEAN states