ENVIRO-ECONOMIC INSTRUMENTS AND WASTE...

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ENVIRO-ECONOMIC INSTRUMENTS AND WASTE MANAGEMENT: THE PROSPECTS OF APPLYING THE INDIFFERENT CONSUMERS-PAY PRINCIPLE FOR MALAYSIA BY ENVIRO-NP 2 O SDN. BHD. (ε ε ε- NP 2 O) PRESENTED BY DATO’ DR A. BAKAR BIN JAAFAR

Transcript of ENVIRO-ECONOMIC INSTRUMENTS AND WASTE...

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ENVIRO-ECONOMIC

INSTRUMENTS AND WASTE

MANAGEMENT: THE

PROSPECTS OF APPLYING

THE INDIFFERENT

CONSUMERS-PAY PRINCIPLE

FOR MALAYSIA

BY

ENVIRO-NP2O SDN. BHD. (εεεε- NP2O)

PRESENTED BY

DATO’ DR A. BAKAR BIN JAAFAR

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21ST CENTURY

SOLUTIONS

TO

18TH CENTURY PROBLEMS:

WASTE-to-RESOURCE

(W2R)TM

© A.Bakar.Jaafar

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POLICY IN PLACE

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MALAYSIA’S POSITION ON

SOLID WASTE MANAGEMENT,

1971

“Solid waste collection is satisfactory but the disposal system is largely by controlled tipping and burning. The disposal of solid

waste is a problem like those in any countries and an organized programme in

this direction is needed. The local authorities in many cases are hampered by

lack of trained experienced personnel, financial resources, and knowledge of the

effects of health.”

(Ref: Malaysia, Government of (1971). Report of the Government of Malaysia for the

UN Conference on Human Environment. April 1. p. 10.)

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POLICY IN PLACE

• The Third Outline Perspective Plan (2001-2010)(OPP-3)

• The 8th Malaysia Plan (2001-2005)

• The 9th Malaysia Plan (2006-2010)

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THE 3RD OUTLINE PERSPECTIVE

PLAN (2001-2010)(OPP-3)

“… the government will consider the adoption of a comprehensive waste management policy … as well as to formulate strategies for waste reduction, reuse, and recycling.”

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THE 8TH MALAYSIA PLAN

(2001-2005)

(i) “the adoption of a comprehensive waste management policy to address the issues of waste reduction, reuse and recycling;”

(ii) the conduct of “relevant studies and demonstration projects to ascertain the viability and the acceptability of a waste recycling industry”;

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THE 8TH MALAYSIA PLAN

(2001-2005) (…continued)

(iii) the introduction by local authorities of “various initiatives and appropriate economic approaches such as incentives and collection charges to reduce the amount of household waste;” and

(iv) “A clearing house mechanism be established to facilitate industrial symbiosis, whereby one industry’s waste could be another’s resource.” (8MP:550)

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9TH MALAYSIA PLAN

(2006-2010) &

SOLID WASTE

MANAGEMENT:

OVERVIEW

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REVIEW

• Waste Generation in P. Malaysia:

19,100 tonnes/day (0.8 kg/capita/day);

• Waste Composition: Food Waste (45%),

Plastic (24%), Paper (7%), Iron (6%),

Glass & Others (3%);

• Rate of Recycling: less than 5%

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THE NATIONAL STRATEGIC PLAN FOR

SOLID WASTE MANAGEMENT (SWM)

• Upgrading unsanitary landfills, construction of new sanitary landfills & transfer stations with integrated Materials Recovery Facilities;

• 4 Rs: Reduction, Reuse, Recovery, and Recycling;

• Use of environment-friendly materials eg bioplastics;

• Legislation to streamline SWM as per the Strategic Plan;

• Awareness campaigns, public education on the benefits of practising sustainable consumption; and

• Establishment of Solid Waste Management Department.

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MAIN FUNCTIONS OF SW

MANAGEMENT DEPARTMENT

• To implement the National Strategic Plan for Solid Waste Management (Strategic Plan); and

• To administer solid waste policy, planning and management in holistic

manner.

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ECONOMIC APPROACHES

• To expand the use of economic instrumentsand market-based measures inter alia the polluters-pay principle, user-fees, & economic-valuation techniques;

• To use innovative funding mechanisms; and

• To conduct pilot studies and projects to operationalise the implementation of such innovative market-based instruments.

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PARADIGM SHIFT

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DISPOSAL

TREATMENT

COLLECTION

recycle

recover

reuse

REPOSITORY

treatment

collection

RECYCLE

RECOVER

REUSE

PARADIGM SHIFT IN WASTE

MANAGEMENT

Paradigm Shift

Current Practice Future PracticeTo be Promoted by

εεεε- NP2O

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POLICY INTERVENTION

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POLICY INTERVENTION

• Imposition of “Blue” Levy for un-returned goods after use

• Promotion of manufactured goods containing recycled materials

• Promotion of renewable energy from waste

• Exclusivity to Enviro-NP2O (εεεε- NP2O) and its

strategic partners

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COMPARATIVE APPROACH

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COMPARATIVE APPROACH BY

COUNTRY

Polluters

Litterbugs

Proposed Approach

for Malaysia

by

εεεε- NP2 O

CONSUMERS

Enforcementeg: Singapore

Polluters Pay

Principle/Take-Back

Policyeg: Germany

INDUSTRIES

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CONCEPT

W RASTE ESOURCE

NO DIFFERENCE, EXCEPT IN VALUE

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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

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PROPOSED SCHEME BY

εεεε- NPNPNPNP2222OOOOGOVERNMENT

CONSUMERS

εεεε- NP2O•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

KEY$ RMEnergy or Material

WASTE

TO

MATERIALS

Commission

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PROGRAMME

IMPLEMENTATION

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IMPLEMENTATION

• Build both physical and ICT infrastructure for waste

collection & for giving away smart credit points;

• Build facilities to recover & store the collected

materials;

• Industries will produce new goods containing

recycled materials;

• Build Waste-to-Energy (W2E) and other facilities

for items not taken up by the industries

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Secretariat

ICT Technical Legal Communication R&D

Chief Environmental Officer(CEO)

Enviro-NP2OSdn. Bhd.

Trust Fund

Board of Trustees

Blue Foundation

Government of Malaysia

Ministry of Natural Resources

& the Environment(MNRE)

Ministry of Local Government

& Housing(MLGH)

Ministry ofFinance(MOF)

Ministry ofDomestic Trade

& Industry(MDTI)

OtherFederal & State

Agencies

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Registrar ofCompany(ROC)

Registrar of Society(ROS)

ROCPublic

• To Protect

Public Interest

• To Promote a Specific Interest

• To make profit& protect privateinterest

Figure The Need for Establishment of the 4th Institution :

Non-Private Organisation for Helping the Government to Protect Public Interest and for Promoting Public Goods & Services

PrivateNGONPOGovernment NPO

• To Promote

Public Goods & Services

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TABLE

ATTRIBUTE & ROLE OF PUBLIC AND PRIVATE

INSTITUTIONS

Attribute

& Role

Institution

PRIVATE

Non-Private(NPO)

&

PUBLIC

Character

Profit-

making

Non-Profit

making

Role #1

To develop

& promote

#2

To develop

& promote

Consumer

Goods &

Services

Public

goods &

Services

Shareholders’

Interest

Public

Interest

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LEGAL & INSTITUTIONAL ARRANGEMENT:

OWNERSHIP STRUCTURE

StrategicPartners

GovernmentManagement

ENVIRO-NP2O SDN. BHD.(Non-Profit, Non-Private Entity)

W-Logistic EPC R&DW2E

51% (5 - 14%) (30 - 44%)

100%70%10%30%

Enviro-ICT

60%

Vendor-SupplierNetwork

Waste-to-Energy Smart Applications

Project Management

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Projected Waste Generation in

Malaysia: Collected &

“Uncollected” Portion, 2003-2008

2004 2005 2006 2007 2008

Year

Wa

ste

Ge

ne

ratio

n

Uncollected by

the Existing

Concessionnaires

Collected bythe ExistingConcessionnaires

by Existing

Concessionnaires

To be tackled by

εεεε- NP2O

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(Un-returned waste-material)

REVENUE MODEL

• P, Population

• g, Waste generation per capita, per day

• R, Revenue

• r, Portion of waste uncollected

• s, Value of Imposed Levy

1 2 3 4

10%

20%

30%

40%

Wa

ste

Un

co

llecte

d (

r)

Year R(t) = risigiP1 x (365 days/year)(Tonne/1000kg)RM

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PRESENT MANAGEMENT BY TYPE OF WASTE &

CURRENT CONCESSIONAIRE

???

IWK

Northern

Waste

Southern

Waste

Alam Flora

RM 380 MilKualiti Alam

Sdn. Bhd.

Complementary

Concessionaire-Designate

Agro

Waste

Liquid

Waste

(Sewage)

Solid

Waste

(Municipal)

Toxic &

Hazardous

Waste

(Industrial)

ENVIRO-NP2O

SDN. BHD.

Concessionaire

Waste Type

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PROBLEM & SOLUTION

(i) “ Dry” ,“Wet”, and “Toxic” Waste are sorted at source. (ii)

Those who return old/used items at designated smart-collection centres will earn credit points

Practices

(i) Consumers will return the old items and earn smart credit points AND

(ii) Any litter in the street or drainage will be somehow

collected; because it has value.

Effect

Consumers buying new goods must return the old ones, if not,

they pay in the form of levyMethod

Indifferent consumers must payPrinciple

Waste ≡≡≡≡ Resource, except in valueConcept

SOLU-

TION

PROBLEM = Garbage

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BENEFITS TO VARIOUS

STAKEHOLDERS

• Government

• Households

• Industries

• Business & Commerce

• Power & Utility

• Landfill Operator & Incinerator

• Technology

• Society

• The Environment

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Key Success Factors

1. Policy Intervention

• Imposition of levy for un-returned goods after use• Promotion of manufactured goods containing recycled

materials• Promotion of renewable energy from waste

• Exclusivity to Enviro-NP2O (εεεε- NP2O) and its strategic partners

• Annual Review of Performance and the Levy Policy

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Key Success Factors (continued)

2. Integration of Proven Technologies through Smart Partnership

• Interface of Differential Material Sensors, Material Classification Software (e-ClassSoft TM) and MyKadTM

• Rolling out of Collection Centres at Strategic Locations (e.g Gas Stations and Retail Outlets)

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Key Success Factors (continued)

3. Public Support and Participation

• Successful implementation of ‘Pilot’ Community: “Dry”“Wet”, and “Toxic” Waste Sorted at Source

• Increase in Public Awareness through Education and Promotion

• Growing participation by individuals and civic groups

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Key Success Factors (continued)

4. Finance

• Sufficient ‘seed’ investment in policy formulation and implementation of Pilot Project.

• Sustainability of the NP2O from returns of its initial investment in profitable operations.

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ACKNOWLEDGEMENT

Prof Dr Azahari IsmailPolicy Review

Prof Madya Dr Mohd Nasir Hassan

Theng Chee Long

Waste Data and Statistics

Khizmie Mohamad

S. T. Chen

Ir. Mazlan Mahamad Badawi

PowerPoint

Mohamad Hafiz KassimKey Success Factors

Dato’ Dr A. Bakar Jaafar

Dr Tong Soo Loong

Prof Dr Muhamad Awang

Ir Tengku Jamal Tengku Nassier

Ir Aziz Ismail

Graphics

Project Overview

Life Cycle Analysis

Engineering & Design

Control System

Dato’ Dr A. Bakar JaafarProject Concept & Idea

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BIBLIOGRAPHY• Abu Bakar Jaafar, and Maheswaran, A., (1978), “Recovery Against Disposal of Wastes for A

Sustained National Development,” Paper presented at the MOSTE Seminar on the Application of Science and Technology to Development, Kuala Lumpur, June 15-16. 18p.

• A. Bakar Jaafar, (1999), “Promotion of Mentor-Mentee Concept Towards Corporate Environmental Management,” Paper presented athe ICM Workshop on Waste Management 2000, Radisson Plaza Hotel, 6-7 April. 23p.

• A. Bakar Jaafar, (2000), “Challenges in the New Millenium: A Perspective of Environmental Consulting and Contracting Services,” Paper presented at the Environmental Management Seminar on Challenges in the New Millennium, 15 September. Hotel Pacific Hotel, Kuala Lumpur. 9p.

• A. Bakar Jaafar, (2001), “Prospects for Alternative Management of Waste in Malaysia,” Paper presented at the 2001 Waste Management: ASIA Solid & Hazardous Waste Management Trade Expo & Conference, 7-9 November, Sunway Pyramid Convention, Petaling Jaya, Malaysia.

• Abu Bakar Jaafar, (2001), “Greening of the Industry: Industrial Response to Sustainable Development,” Paper presented at the Academy of Sciences of Malaysia Seminar on Sustainable Development: A Blueprint for Asia, 13 February. Kuala Lumpur. 50p.

• A. Bakar Jaafar, (2001), “Sustainable Consumption,” Universiti Putra Malaysia National Seminar “Penggunaan Lestari: Cabaran Globalisasi,” Equatorial Hotel, Bangi, Selangor, 17May. 32p.

• Abu Bakar Jaafar and Noor Mohamed Haniba, (2002), “The Role of Non-Private Organization (NPO) in Waste Management,” Paper presented at the AAAWM Symposium: Charting Strategies for Waste Management in Developing Countries, 9-12 September. Nikko Hotel, Kuala Lumpur. 10p.

• Malaysia, (1971), Government of , Report for the United Nations Conference on Human Environment. April 1. 22p.

• Malaysia, Statement of, (1972), UN Conference on Human Environment, Stockholm, 1-5 June. 4p. • Malaysia, (2001). Eighth Malaysia Plan (2001-2005) (8MP). Kuala Lumpur: Percetakan Nasional

Berhad. p.550.• Malaysia, (2001), The Third Outline Perspective Plan (2001-2010). Kuala Lumpur: Percetakan

Nasional Berhad, p. 187.

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INNOVATOR-PROMOTERDato’ Ir. Dr. A. Bakar Jaafar, P.Eng., FIEM, FASc

[email protected]@gmail.comMobile: +6 012 320 7201

Chariot Enterprise Sdn Bhd

Enviro-LIFT Services Sdn Bhd(www.envirolift.com.my)6B Jalan Astaka L (U8/L)

40150 Shah AlamSelangor, MALAYSIA

Updated: May 25, 2006