68960 Malaysia Comprehensive Development Partnership - Environment Report on completion of activities 1. The Malaysia Comprehensive Development Partnership – Environment (CDP-E) program was established as a Technical Assistance (P091605) activity in August 2004. This report summarizes developments around the program over the last eighteen months, deliverables planned, and outcomes achieved. It also lays down a tentative road map for future collaboration with counterparts in Malaysia. Background 2. Following a dialogue initiated earlier in the year during an EAP management visit to Kuala Lumpur, a Bank Environment team visited Kuala Lumpur from July 14 to 16, 2004 with a view to establishing an Environment agenda for a possible Malaysia-World Bank Knowledge Partnership Program1. The team held discussions with the Economic Planning Unit (EPU), Prime Minister’s Department, and the Conservation and Environment Management Division of the newly created Ministry of Natural Resources and Environment (MONRE). The AIS for the Malaysia CDP-E was established in August 2004. In the following months (coinciding with visits to Malaysia for supervision of the Malaysia ODS project) a further meeting was held with the EPU in June 2005, and it was agreed that the best opportunities for traction on this dialogue would be with organizations representing business interests, and that a focus on carbon finance (CF) and on corporate social and environmental responsibility (CESR) was appropriate. Other discussions such as Sustainable Development Indicators and a small grants program were pursued, but did not develop. 3. Through this period, a dialogue was also maintained, at the suggestion of the External relations unit of MONRE, with the Business Council for Sustainable Development, Malaysia2. This was later extended to include the Malaysia International Chambers of Commerce and Industry (MICCI). The initial proposal was to develop areas of mutual interest, including on the applicability of the Equator Principles in Malaysia and the potential for CF in Malaysia, and it was hoped that the bank could participate in organizing a CEOs’ Conference on Sustainable Development. This was first targeted for July 2005, in conjunction with the Malaysia Environment Week celebrations, and later for December 2005, in conjunction with the Hibiscus Awards ceremony. The Prime Minister of Malaysia was expected to participate in both of the above-mentioned functions. These were seen as interesting proposals that could form the basis of a visible and useful engagement in 2005. 4. After the December 2005 event was postponed at BCSDM’s request, it became necessary to break down the agenda into two separate events, a CF workshop for MICCI 1 This was planned to be developed on lines similar to the Country Development Partnership for Environment for Thailand, and was approved with a small BB allocation as an FY-05 enabling activity by the CMU. 2 See the team’s report at Annex I. and a CESR workshop for BCSDM. Given the very limited BB available for this program, it was planned to deliver the whole activity as a low-key but very pointed set of interventions. Events were built around other staff travel to minimize expenses while delivering to the counterparts a meaningful program that had potential for replication and would provide the basis for further engagement. This has worked very effectively. I. MICCI Workshop on the Kyoto Protocol and the Emerging Carbon market, December 13, 2005, Kuala Lumpur 5. This was previously reported to management on December 14, 2005. MICCI is one of the oldest business organizations in the region, having been founded in 1837, and has more than 1,000 companies enlisted as members. It has several standing committees on various subjects; the Environment Standing Committee is actively trying to promote awareness on climate change within the industry, and this workshop was one such initiative. They are also keen to understand the options for business, and to understand how real the market has become. 6. I invited Lasse Ringius (ENVCF) to participate, and we conducted a workshop for MICCI on “the Kyoto Protocol and the Emerging Carbon market�. The program for the workshop was as follows: i. Registration ii. Welcome Remarks (Mr. G Krishnan, MICCI Vice-President) iii. Climate Change and the Kyoto Protocol (Dr Yap Kok Seng, Deputy Director- General, Malaysian Meteorological Department) iv. The Emerging Carbon Market – Current State and Trends (Lasse Ringius) v. The Clean development Mechanism and Carbon opportunities fro Middle Income Countries (Neeraj Prasad). 7. The workshop was attended by several (26) private sector representatives interested in understanding the potential that might emerge for their firms from developing carbon credits, by some CDM consulting groups, and some Government officials. A list of participants is attached at Annex I. 8. Our presentations were very well-received, and the Bank received invitations to a number of follow-up events, and it might be useful to follow up on prospects with some palm oil companies, and possibly to invite the DNA or others to the next regional activity that is organized. We assessed that this is a sluggish market, and we will at best do a few deals here, but there is always potential. The presentations provided at the workshop are attached at Annex II. II. BCSDM Workshop on Emerging Global Corporate Challenges and Sustainable Development�, February 21, 2006 9. An effort was made to assemble an expert team from the Bank group to participate in the forthcoming event on CESR. IFC was contacted, but was eventually unable to participate. Private Equator Principles’ practitioners from the region who were contacted 2 on IFC’s recommendations (ING Bank) also eventually begged off citing prior commitments. However, WBI participation was secured, as also from EASES itself. Djordjija Petkoski and Dan Biller agreed to make presentations, and the workshop was finally delivered on February 21, 2006. Over sixty-five participants were recorded (see Annex III). The program was as follows: i. Registration ii. Welcome Address: Dato Haji Sabri Ahmad, Vice President BCSDM (and Chief Executive of Golden Hope Plantations, Ltd.) iii. Keynote address: International Investment influences on Sustainable Corporate Practices, Dan Biller, EASES. iv. Session I: The Changing Corporate Paradigm, chair Dato Kok wee Kiat, Hon. President BCSDM a. How Corporations are Redefining their Bottom Line, Omar Merican, Chief Operating Officer, Bursa Malaysia (Malaysian Stock Exchange) b. Global Overview of Emerging Changes in Corporate Practices, Djordjija Petkoski, WBI c. Panel Discussion and Q&A. v. Session II: Beyond Financing, chair Dr. Mohamed Arif, Malaysian Institute of Economic Research a. Malaysia’s Growth and Sustainable Development Global Trends, Mr. Stephen C.M. Wong, Institute of Strategic & International Studies b. Case Study – Social Responsibility and Corporate Governance, Dato Seri Magat Najmuddin bin Haji Megat Khas, President Malaysian Institute of Corporate Governance. 10. The workshop had three meaningful outcomes, which could easily provide the basis for a more meaningful engagement on a Comprehensive Development Partnership for Environment in the coming year if desired. i. The Bank’s presentations were well-received, as was the idea of the workshop itself. As pointed out by a number of speakers on and off the record, discussions on issues such as these were not very common in the past, and it was important to continue to support such initiatives. ii. The Business Council is very keen to establish the collaboration with the World Bank as an annual feature, with key speakers being brought in on organized occasions, and also any Bank experts coming to the region being accommodated at short notice for BCSDM seminars on relevant topics. BCSDM also requested that relevant Bank publications be sent to its library for informing members. iii. Several other groups have sought Bank involvement. a. The Asian Strategy and Leadership Institute3 (ASLI) is interested in organizing an international conference/workshop on "Tapping Alternative Energy Resources: Prospects and Pitfalls with special reference to the Oil Palm Industry." This will involve working with the Malaysian Palm Oil 3 For details see www.asli.com.my 3 Producers Association. It will also potentially involve developing a proposal for Carbon Finance based on the use of oil palm biodiesel. The project is likely to have much potential demonstration value as well as replication potential. b. The Center For UiTM-Industry Linkages, Universiti Teknologi Mara, is keen to set up a collaborative program with WBI to deliver training packages for CEOs on CESR, etc. 11. In conclusion, it has been possible to leverage a small investment in Malaysia into what can become a meaningful program of interaction with academia and with the private sector. It is now necessary to examine what direction is considered desirable, including a possible shift towards policy issues, corporate governance, development indicators or other analytical outputs. 4 Annex I Participant List: MICCI and World Bank Seminar on KYOTO PROTOCOL AND THE EMERGING CARBON MARKET December 13 2005, MICCI PLAZA MONT KIARA, KL Participant Name Designation Company Aluminium Company of Malaysia En Azmi B Sofah Environment, Health & Safety Manager Bhd Ms Jan Foo Corporate Planning Manager Bintan International Sdn Bhd Dr Jason Yapp CDM Specialist Caleb Management Services Ltd Mr Timothy See Thoe Chee Kong Senior Manager – Export Sales Carrier International S/B Ms Julie Tan Marketing Services Manager CST Engineering Sdn Bhd Mr Thirupathi Rao Consultant Danish Energy Management Mr Patrick Tan Director Dept of Environment Malaysia ExxonMobil Exploration & Ms Grace Choo Sor Mooi Environment & Regulatory Mgr Production M’sia Inc Tuan Marina Tuan Ibrahim Economist Forestry Dept Malaysia Tuan Hj Nazir Khan Asst Director Forestry Dept Malaysia En Azmi Nordin Deputy Director Forestry Dept Malaysia Mr Chong Wei Kwang Environmental Risk Manager HSBC Bank Malaysia Bhd Cik Putri Rosshilawati Sales Engineer Jebsen & Jessen Technology Sdn Bhd Ms Liew Siew Ling Technologist KL-Kepong Industrial Holdings S/B En Azmanuddin Haq Ahmad Managing Director Kualiti Alam Sdn Bhd Senior Manager, Alternative Fuels/ En Mohammad Dit Environment Lafarge Malayan Cement Bhd Ms Yee Kien Ling Group Strategy Manager Lafarge Malayan Cement Bhd Malaysian Meteorological Dr Yap Kok Seng Deputy Director-General Department Mr Kan Weng Tat Manager – Special Projects MOX Gases Sdn Bhd Mr William Kuek Safety Health Environment Group Manager Nestle Malaysia En Sajali b Hj Kip Head Evironment & SD Sarawak Shell Berhad Ms Joanne T Kissick Senior SD Advisor Sarawak Shell Berhad To’ Puan Janet Looi Partner Skrine Ms Leong Sak Kuan Certification Auditor Tuv-Nord (M) Sdn Bhd Mr Mike Krishnan Managing Director Land and General Bhd Mr Neeraj Prasad (speaker) Carbon Finance Co-ordinator World Bank Dr. Lasse Ringius (speaker) Senior Environmental Specialist World Bank Ms Chong Yen Wan GM, Technology and Environment MICCI 5 Annex II Presentations made at MICCI Carbon Finance Workshop (in file) 1. Lasse Ringius, State and Trends of the Carbon market 2. Neeraj Prasad, Options for a Middle Income Country 6 Annex III Participant List: BCSDM & World Bank Workshop on "EMERGING GLOBAL CORPORATE CHALLENGES AND SUSTAINABLE DEVELOPMENT", February 21, 2006 Sheraton Imperial Hotel, Kuala Lumpur No Name of Participant Organisation 1 Jennifer Lopez ACCA Malaysia 2 Hairizal Bin Baharudin AJC Planning Consultants Sdn Bhd 3 Mohamed Siraj Abdul Razack Alam Flora Sdn Bhd 4 Chew Seng Choon BCSDM 5 S. Veerasingam BP Asia Pacific (M) Sdn Bhd 6 Dr. Peter Collinson BP Asia Pacific (M) Sdn Bhd 7 Ashwin Dev Kumar BP Chemicals Malaysia Sdn Bhd 8 Jothimani Bursa Malaysia 9 Lim Teck Ghee Centre for Public Policy Studies 10 Patrick Tan Hock Chuan Department of Environment 11 Ir Gian Singh Diversified Promotions 12 Ramesh Verappan Diversified Promotions 13 Ramli Abu Hassan Diversified Promotions 14 Mohd Ashraf Abdullah Golden Hope Plantations 15 Khairudin Hashim Golden Hope Research Center 16 Thiang Siew Eng Green Edge Consult 17 Chong Wei Kwang HSBC Bank Malaysia Berhad 18 Monica Wong IVY Beauty Corporation Sdn Bhd 19 Datuk Dr Hashim Wahab Kod Efficien 20 Suhaimee Mahdar Kualiti Alam Sdn Bhd 21 Diane M Merritt LDS Charities 22 Prof. LaVere B Merritt LDS Charities 23 Dr Rawshan Anabegum Lestari 24 Noraziah bt Abdul Aziz Lestari 25 Norita Bt Ridwan Lestari 26 Rahman Elfithri Lestari Lestari - Universiti Kebangsaan 27 Prof. Dr Mohd Shafeea Leman Malaysia MIECO Manufacturing Sdn Bhd, 28 Dr David Chin Tuck Yuan Kuantan 29 Lee Shyan MPPJ 30 Lim Gim Teik N Solutions Sdn Bhd 31 Datin Zaharah Alatas NCWO 32 Tengku Marina Badlishah Nestle Products Sdn Bhd 33 Dato' Ghazali Dato Yusoff Executive Director, BCSDM 34 Nazaruddin Razali Nusantara Technologies Sdn Bhd 35 Abdul Ghafar Maulana Petroliam Nasional Berhad 7 36 Dr Foo Say Moo Petroliam Nasional Berhad 37 Lee Tzee Wan Petroliam Nasional Berhad 38 Noor Suhailah Bt Othman Petroliam Nasional Berhad 39 Norsham B Khalid Petroliam Nasional Berhad 40 Zuraidah Kamarudin Petroliam Nasional Berhad Semarak Technology & Associates S 41 K.N Gobinathan B 42 Joseph Leong Tet Soon Sime Darby Berhad 43 Eliza Ibrahim Cooper Student - 44 Ir Mohd Noh b Ahmad Tenaga Research Berhad 45 Mohd Irwan b Aman Tenaga Research Berhad 46 Associate Prof. Dr Norsaadah Ismail UITM 47 Associate Prof. Indahsah Hj Sidek UITM Associate Prof. Datin Hajah Norela 48 Nuruddin UITM 49 Associate Prof. Dr Zaini Abdullahl UITM 50 Laura W Y Lee UNDP 51 Angelina Yee Seow Voon Universiti Tengku Abdul Rahman 52 Jeffrey Phang Universiti Tengku Abdul Rahman 53 Low Han Cheong Universiti Tengku Abdul Rahman 54 Woon Peir Peir Universiti Tengku Abdul Rahman 55 Esther Chin Universiti Tengku Abdul Rahman 56 Tengku Marina Badlishah Nestle Products Sdn Bhd Guests and Speakers Total 1 YBhg Dato' Hj Sabri Ahmad Vice President, BCSDM 2 Dato' Kok Wee Kiat Hon. President, BCSDM 3 Dr. Dan Biller World Bank 4 Mr. Omar Merican Bursa Malaysia 5 World Bank Institute 6 Prof. Emeritus Dr Mohamed Ariff Mal. Institute of Economic Research 7 Mr. Steven C.M. Wong ISIS Y.Bhg Dato Megat Najimuddin bin Hj Megat Malasia Institute of Corporate 8 Khas Governance 9 Neeraj Prasad World Bank 8 Annex IV Workshop on Emerging Global Corporate Challenges and Sustainable Development, organized by the Business Council for Sustainable Development in Malaysia, the World Bank and Nestle Malaysia (Program and presentations) on file. 9 wb154069 N:\Neeraj\Lao Cam Mal CN 2-06\Malaysia\CDP_E\Malaysia CDP-E Final Report-2-06.doc 03/02/2006 6:25:00 PM 10