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
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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
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
Theng
This is what I commented to Alam Flora that their intension is good to seperate "recyclables" from "non-recyclables", but the instruction is wrong because it should not be ORGANIC WASTE.. I will put my paper into the ORGANIC bin then because paper is organic.. plastic is also organic.
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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
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)