Wednesday, January 23, 2013

The Danish CDM Programme in Malaysia

http://www.thebioenergysite.com/articles/747/the-danish-cdm-programme-in-malaysia

The Danish Government is currently involved in 15 Clean Development Mechanism-projects in Malaysia.
The majority of these projects are within the palm oil sector with the aim of reducing GHG emissions as well as improving the social and environmental sustainability of palm oil production.

There are more than 390 palm oil mills in Malaysia, making the country one of the largest palm oil producers in the world.

According to the Danish energy ministry, the palm oil sector has a large potential for CDM, which is also reflected in the fact that the majority of the 83 Malaysian CDM-projects registered by UNFCCC today, are in the palm oil sector.

The traditional palm oil process produces large quantities of solid waste and organic wastewater which leaves a huge potential to developing biogas, biomass and composting projects. Projects that due to technological and investment barriers so far have not been possible to develop without the CDM mechanism.

The Danish CDM involvement in Malaysia is an offset of the former Danish environmental development programme for Southeast Asia, and Denmark has contributed with finance and knowledge to the build up of the well functioning Malaysian CDM authority.

In 2004, Denmark entered the first contract with a Malaysian CDM project.

In 2006 the same project was the first project to be registered in Malaysia.

Since then, the Danish portfolio has grown to the current 15 projects.

The Danish CDM projects are located on the Malaysian Peninsula, but there are also two projects on the state of Sarawak and plus three on the state of Sabah on Borneo.
All the projects, except for one, are waste handling projects from palm oil production, either composting projects producing organic fertiliser from empty fruit brunches or biogas or biomass projects producing energy for internal or external use.

The last project is a landfill project located in the South of Malaysia producing biogas from waste.

From the outset the aim of the programme has been to ensure long-term environmental, social and financial benefits within the vicinity of the projects.

It is a priority that the projects have a positive spin-off effect, such as reduced air pollution, new jobs, improved quality of water and stable and cheap energy supply. In addition, the project owners today have to agree to the principles of the UN Global Compact and particular CSR issues when entering a purchase agreement with the Danish government.

Several of the Danish CDM projects have been important first movers in the region with regard to efficient use of empty fruit bunches for biomass production or waste processes turning the organic waste from the mills into either nutrition rich fertilizer or biogas.

Many of these palm oil producers are today certified as sustainable by the Roundtable for Sustainable Palm Oil (RSPO) which is an international non-profit organisation supported by International NGOs, palm oil producers and banks.

The Danish project portfolio is closely managed by the Danish Energy Agency together with the Danish Embassy in Kuala Lumpur and our consultant Danish Energy Management.

In total, the 15 projects are estimated to reduce more than 1 million tonnes of CO2 equivalents by 2013, but as the installed technology will carry on, the benefit for the environment will continue for many years to come.

September 2010

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