Green Purchasing Asia :: August 2011 by Green Purchasing Asia

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9 OPPORTUNITIES: RSB paves way for sustainable fuels into EU 39 CASE STUDIES: Gujarat rises on the tide of marine power

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46 PEOPLE: Shell’s Peter Voser on the future of energy and mobility 50 EDITORIAL: Why do we have to pay more for green products? 55 INFO: Cooling the data centre power crises

Energy eƫciency

ISSN 2231-8135

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Contents

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cover

ASIA

(See pages 14–26)

AUGUST 

From the managing editor’s desk

Buy into a green future

OPPORTUNITIES

RE investments hit all-time high

Scaling up China’s oﬀshore wind sector

RSB paves way for sustainable biofuels into EU

“You can’t manage what you don’t measure.” Peter Ryus, RSB services manager for certification and implementation

Cleantech start-ups: Beyond the valley of death

Four ingredients for Singapore’s cleantech success

“Singapore oﬀers global cleantech companies a unique combination of four key ingredients, all in one place.” Leo Yip, chairman of Singapore’s Economic Development Board

(QHUJ\ HƫFLHQF\ WR GULYH QH[W ZDYH RI RSSRUWXQLWLHV

Malaysia rolls out energy eﬃciency roadmap

Five-pronged approach to cutting power usage

“The government will start cutting down on its own energy use.” Zaini Abdul Wahab, head of EPP9, Ministry of Energy, Green Technology & Water

Rebate scheme to stir consumers into action

Rebound eﬀect of rebates and using EE products

Sunrise for energy services firms

“The concept of EPC is the ESCOs are paid through savings, and they must provide a guarantee of savings.” Zulkifli Zahari, president, Malaysia Association of Energy Services Companies (MAESCO)

Making the case for millions in savings

Showcasing sustainable technologies

   •   

Champion green builder’s latest condo (See page 30)

EDITORIAL

Holidaying without the carbon baggage

Carrot and big stick in energy-eﬃciency promotion

Why do we have to pay 50 more for green products?

CASE STUDIES

CDL named BCA Green 30 Mark Platinum Champion Indian biomass innovators win acclaim

Power plant draws flak

Mining bioethanol from waste

Fashioning a greener Mekong Delta

Chinese local governments bank on the sunny side

Gujarat rises on the tide of marine power

PEOPLE

Working for positive change that lasts

“The one thing in all these years that I’ve helped to create that’s a real-life thing… is the RSB.”

Asia’s urban challenges

The certification conundrum

New era in Malaysian waste management from Sept 1st?

INFORMATION

Cooling the data centre power crisis

“We can expect the operational cost of managing data centres to skyrocket.”

Barbara Bramble, chair, RSB steering board

Blueprints for a green future

Datuk Badlisham Ghazali, CEO, MDeC

44 “It takes time and patience to explain to the client; to do the right thing.” David Mizan Hashim, founder, Veritas Design Group

The future of energy and mobility

Signs that save Training GBI facilitators

Peter Voser, chief executive, Royal Dutch Shell

Von Kok Leong, course director, GBI facilitator course

News briefs

Homework

Check out the latest World Economic and Social Survey (WESS) report     •  

“Facilitators who qualify from the professional course can command higher fees.”

“By 2012, more than half of our production will be natural gas.”

Eco-city for Mumbai-Delhi 40 industrial corridor

A look at energy-eﬃciency labels

The team Editorial Editor: Lim Siang Jin Managing editor: David Lee Boon Siew Assistant editor: Siaw Mei Li Contributing editors: Ann Teoh, Jason Tan Contributing writers: Eleanor Chen, Stephen Ng, Suvarna Beesetti, Mallika Naguran, Ngam Su May, VK Shashikumar, Tejas Patel, Nidhi Bhardwaj Columnists: Ning Yu, Prasad Modak, Shel Horowitz, Khoo Hock Aun, Goh Ban Lee Marketing & sales Manager: Yong Wang Ching +6012 205 7928 Sam Thong (Malaysia) +6012 361 0617 Lim Wan Tsau (Singapore) +65 9068 0184 Creative & design Khoo Kay Hong, Faye Phua Szeu Hwui Production & advertising traﬃc Eddy Yap Subscription & circulation Yap Eng Jin Finance & operations Kym Chong Corporate Managing director: Lim Siang Jin Publisher Briomedia Green Sdn Bhd (924679-H) 3-3 Jalan Solaris 2, Solaris Mont Kiara 50480 Kuala Lumpur, Malaysia Tel: +603 6203 7681 (Malaysia) Tel: +65 9068 0184 (Singapore) Fax: +603 6211 2681 Email: editor@greenpurchasingasia.com Printer KHL Printing Co Sdn Bhd (235060-A) Lot 10 & 12, Jalan Modal 23/2 Seksyen 23, Kawasan Miel Phase 8 40000 Shah Alam, Selangor, Malaysia Tel: +603 5541 3695 Fax: +603 5541 3712 © 2011: Briomedia Green Sdn Bhd Letters and articles are welcome, and should be addressed to: The Editor at Green Purchasing Asia 3-3 Jalan Solaris 2, Solaris Mont Kiara 50480 Kuala Lumpur, Malaysia Email: letters@greenpurchasingasia.com Endorsed by • Ministry of Energy, Green Technology and Water, Malaysia • International Green Purchasing Network

Disclaimer Briomedia Green Sdn Bhd (924679-H) believes that the information published at the time of printing is correct. The views expressed in the articles are not necessarily those of the publisher. While the publisher has taken reasonable care in compiling the magazine, it shall not be liable for any omission, error or inaccuracy. Editorial contributions are welcome but unsolicited materials are submitted at the sender’s risk. The publisher cannot accept responsibility for loss or damage. All rights reserved by Briomedia Green Sdn Bhd (924679-H). No part of this publication may be reproduced without the publisher’s written permission. Paper: Cover 180gsm Ningbo artcard PEFC; Text 80gsm Royal Express Silk PEFC/FSC

From the managing editor’s desk David Lee Boon Siew boonsiew@ greenpurchasingasia.com

At several conferences on sustainability that I attended, presenters have encouraged the participants to harvest the low-hanging fruits, a figurative reference to areas where one can tap into available technologies and expertise to derive huge benefits in the shortest time. Energy efficiency, or more popularly referred to as EE, is one of those “fruits” that are not only within reach, but are really juicy to boot. In fact, a senior civil servant at the recent launch of the Malaysian government’s SAVE (a clever acronym for its Sustainability Achieved Via Energy Efficiency) rebate programme, got me chuckling when he said those fruits have already ripened and dropped to the ground but few people are picking them up. It’s easy to surmise why this is so. Because of the huge subsidy on gas that goes to producing its electricity, Malaysia has one of the lowest power tariffs in the world. Now that the government has decided to lift the gas subsidy in stages, EE has become a byword. I was shocked to learn that the top 128 energy guzzling facilities that belong to the government use more than RM587 million (US$195 million) worth of electricity a year. That’s an average of almost RM500,000 per facility. If energy managers can help trim that by just 10%, that’s a saving of RM58.7 million a year in public money. It’s an excellent business to be in. And that’s why energy services companies (ESCOs) are sprouting up in Malaysia and energy performance contracting has become a popular business proposition to building owners who are worried about investing in EE. For those keen to look for prospects in this area, our cover story (all 13 pages of it!) is a must-read.

The SAVE rebate scheme for purchases of energy-efficient air-conditioners, refrigerators and commercial chillers, which will cost the government RM50 million, is an attempt to encourage people to think EE. It is also a way to boost sales, so that the prices of energy-saving electrical products will go down through economies of scale. We hope the industry will follow through. We have also given quite a bit of space in this issue to the Roundtable on Sustainable Biofuels (RSB) services roll-out programme for Asia Pacific. Key regional players and stakeholders met in Kuala Lumpur to discuss the impending RSB certification as the European Commission will soon be formally recognising the RSB standards. RSB steering board chair Barbara Bramble was in town for the roll-out and we managed to catch up with her for lunch, which doubled up as an interview session that stretched way past coffee. Incidentally, she is the first woman to be featured in the People section. In this issue, we welcome to our writers’ team Nanjing Shanglong Communications Co Ltd, a company that provides news articles on China to trade publishers. Their maiden article is on China’s plan to boost offshore wind power installed capacity. Also joining us is veteran editor Ngam Su May, who interviewed architect David Mizan Hashim for the People section, in conjunction with the International Greentech & Eco Products Exhibition and Conference Malaysia to be held next month.

Coming up next: Greenwash specialists or wholesome greenies? Meet the RSPO, facilitators of “sustainable palm oil”.

   •   

PURCHASING

ASIA 

Buy into a green future Green Purchasing Asia’s main purpose is to provide a well-structured avenue of immediately-useful information to buyers and sellers of green products and services in major sectors, especially in Asia, and to buttress the development of a business community around it. The magazine will cover the following sectors, which have seen the greatest technological innovations and increasing economies of scale: • Renewable energy, including solar energy, wind power, geothermal and mobile applications • Biofuels from food and non-food sources, including palm oil, sugarcane corn and jatropha • Biomass from various organic, inorganic and mixed sources like oil palm, wood, sugar cane, corn and household waste • Green buildings and eco-cities covering, among others, green building certification programmes, environmentally sound building design and materials, retrofits, and resource-saving technology • Transportation, including plugin electric vehicles (EV), hybrid electric vehicles (HEV) and automobile alternatives like rail • Smart grids, which turn consumers into producers of energy, smart meters to track consumption and manage electrical flow and new interconnect standards     •  

• Water and waste management, focusing on desalination technology, reverse osmosis and wastewater and solid waste management • Energy eﬃciency, whereby technologies, processes, materials and design work together to maximise quality of life and industry output at minimal energy cost • Green finance, viz, venture capital and bank loans, grant programmes (NGOs and government) and government incentives.

To help readers navigate the magazine easily, we have divided it into five broad areas, each assigned a weightage to ensure consistent and adequate editorial space allocation. • Opportunities: These include project announcements, tenders and new eco products and services. This will be a section heavy on actionable information. Weightage: 30% • Case studies: We focus on projects that use green technolo-

gy, like eco-cities, solar farms and waste recovery projects in large plantations. In these articles, we will list out the names and contacts of developers, suppliers and contractors involved in those projects for networking. Weightage: 30% • People: This section focuses on interviews with thought leaders and captains of industry in green businesses. We will also cover small and medium enterprises involved in trailblazing projects. Weightage: 15% • Editorials: Opinion pieces, columns and feature stories on climate change, sustainable development and other relevant subject matters are the meat of this section. It is designed to provoke debate, so that by talking about issues, we think of new ways and approaches to solving problems. Weightage: 15% • Information: This includes news digest, events calendar, letters, reviews of books and reports on climate change, green technology or related topics, market entry conditions and new country regulations, policies and incentives. Weightage: 10% Target readership The government’s role is not only to set the policy environment to drive the green agenda. It is also a massive market player in the economy, accounting for up to 30% of purchases. Any decision by governments to procure green will have a major influence on the market. It is this dual role that makes governments important customers, which is why we are targeting 40% of our print and online circulation at senior government servants. The remaining 60% will be aimed at the business community, international agencies and non-government organisations.

opportunities

 

RE investments hit all-time high For the first time, more money is spent on RE in poor nations than in the rich Renewable energy policies or targets now drive growth in 112 countries

Investments in renewable energy (RE) last year hit a record of US$211 billion – about one-third more than the US$160 billion in 2009 and more than five times that invested in 2004. And all this money came when the world was still struggling from a financial crisis. But a more interesting fact that has emerged is that, for the first time, investments in renewable energy companies and in utility-scale generation and biofuel projects in developing countries have surpassed that of the league of richest nations. It comes as no surprise, however, that a third of that investment was in China. These observations were contained in the latest REN21 Renewables 2011 Global Status Report. REN21 is a global policy network for leadership and exchange in international policy processes in renewables. “The increased renewable energy activity in developing countries… is very encouraging, since most of

US$ 211

bil

Global investments in renewable energy in 2010, up from US$160 bil in 2009 the future growth in energy demand is expected to occur in developing countries,” says Mohamed El-Ashry, chairman of REN21’s Steering Committee. “More and more of the world’s people are gaining access to energy services through renewables, not only to meet their basic needs, but also to enable them to develop economically.” The report notes that renewable

energy policies continue to be the main driver behind growth in this sector. By early this year, at least 119 countries had some type of policy target or renewable support policy at the national level, more than doubling from 55 countries six years ago. More than half of these countries are in the developing world. Of all the policies employed by governments, feed-in tariffs remain the most common. Last year, renewable energy supplied an estimated 16% of the world’s ﬁnal energy consumption and delivered close to 20% of global electricity production. Renewables now comprises about a quarter of total global powergenerating capacity. Including all hydropower (an estimated 30 GW added in 2010), RE accounted for about half of total added power-generating capacity last year. Global solar photovoltaic (PV) production and markets more than doubled in comparison with 2009, thanks to government incentive programmes and the continued fall in PV module prices. Germany installed more PV in 2010 than the entire world added in 2009. PV markets in Japan and the US almost doubled relative to 2009. Globally, wind power added the most new capacity (followed by hydropower and solar PV), but for the ﬁrst time ever, Europe added more PV than wind capacity.

Other highlights • Solar PV capacity was added in more than 100 countries.

• Brazil produces virtually all of the world’s sugar-derived ethanol, and has been adding new hydropower, biomass and wind power plants, as well as solar heating systems.

• The top five countries for non-hydro renewable power capacity were the US, China, Germany, Spain and India.

• In the European Union (EU), renewables represented an estimated 41% of newly-installed electric capacity. While this share was significantly lower than the more than 60% of new capacity in 2009, more renewable power capacity was added in Europe than ever before.

• Renewables accounted for about 26% of China’s total installed electric capacity in 2010, 18% of generation, and more than 9% of final energy supply.



• China led the world in installing wind turbines and solar thermal systems and was the top hydropower producer. The country added about 29 GW of gridconnected renewable capacity, for a total of 252 GW, an increase of 13% compared with 2009.

• The EU exceeded its 2010 targets for wind, solar PV, concentrating solar thermal power, and heating/heat pumps.

   •   

opportunities

 

Scaling up China’s oﬀshore wind sector Five top manufacturers compete to produce bigger wind turbines Bidding for 2 GW capacity now in progress, ends first half 2012 By Liu Yuan Yuan

Projects planned and in development Projects that have been completed or are under construction include the     •  

Shanghai Donghai Bridge (East Sea Grand Bridge) 100 MW project, the Jiangsu Dafeng intertidal zone 300 MW demonstration project and the government’s ﬁrst round of 1,000 MW offshore wind power bidding projects. In the meantime, the government is putting out large-scale offshore wind power concession projects for tender. It plans to focus on development and construction in coastal Jiangsu and Shandong provinces, and to push for further development in Heibei, Zhejiang, Fujian, Guangdong, Guangxi and Hainan provinces as well as in Shanghai.

   

China has plans in place to give a major boost to its offshore wind power installed capacity, upping it to 5 GW by 2015 and 30 GW by 2020, the country’s National Energy Administration (NEA) declared at an offshore wind power conference held in the city of Nantong, Jiangsu province on June 22nd. NEA is also now preparing the documentation for the second public bidding of several offshore wind power concession projects with a total installed capacity of 1.5 GW to 2 GW later this year. It is scheduled to complete the bidding process in the ﬁrst half of 2012. NEA deputy director Liu Qi said at the conference that offshore wind power is at the forefront of global wind power development, and China’s players need to quickly catch up with its overseas competitors in terms of technology. To date, China has installed only 142.5 MW in offshore wind turbines, accounting for less than 1% of China’s cumulative wind installed capacity and about 4% of the world’s offshore wind installed capacity. However, between now and 2020, the country is widely seen as the most promising offshore wind power developer outside of Europe. The next ﬁve years is expected to witness the swift expansion of Chinese offshore wind farms, according to the government’s 12th Five-year Plan that covers the period from 2011 to 2015. China also boasts of rich offshore wind power resources. According to the China Meteorological Administration (CMA), the country has around 200 GW of ocean-based wind resource installations (in water depths from 5 to 25 meters) with turbines reaching more than 50 meters above sea level.

Windmills that form part of the 100 MW Donghai Bridge oﬀshore wind farm

Manufacturers in action Wind power equipment makers in China are aggressively developing large wind power turbine sets for offshore uses. The only sets in use now are the 3 MW wind turbine units made by Sinovel Wind Group. Manufacturers including Sinovel, Goldwind Science

& Technology, XEMC Windpower (Xiangtan Electric Manufacturing’s subsidiary), Guodian United Power Technology (United Power) and Shanghai Electric Group are also developing turbine sets above the 3 MW and 5 MW levels. The first 5 MW units from XEMC Windpower, and 5 MW and 6 MW units from Sinovel have just recently started coming off production lines with similarly large sets scheduled for completion and to be put into trial in the second half of the year. At Offshore Wind China 2011, Asia’s largest annual offshore wind industry gathering held from June 15th to 17th in Shanghai, leading wind turbine manufacturers together with their suppliers joined hands to create a complete industry chain. They include industry giants like Sinovel, Goldwind, Vestas, Siemens, United Power, GE, Shanghai Electric and Gamesa. Sinovel exhibited its latest offshore wind power technologies and products, including China’s first independently developed 6 MW wind turbine. It demonstrated the current state of the grid-connected offshore wind farm at Donghai Bridge in Shanghai, China’s pilot offshore wind power project. The first unit of the fully-patented grid-friendly 6 MW SL6000 wind turbine was delivered by Sinovel on May 18th. The model can be used by winds farms dealing with differing wind resource environments, whether they be land-based, seabased or located in an intertidal zone. The SL6000’s impeller, 128 meters in diameter, increases the sweep area and capacity for wind collection. The unit can operate in temperatures as low as -45°C, and with wind speeds of up to 62.5 m/s. Guodian United Power announced plans to roll out a 6 MW turbine set for offshore wind farms by year end and to develop 12 MW turbines next year. Shanghai Electric said it would produce a 5 MW offshore turbine late this year or early next year while Goldwind indicated it would produce a 6 MW prototype in the same time frame, and mass produce them in 2014. Chongqing-based China Shipping Industry Corporation (CSIC) also said it would produce a 5 MW prototype in October. – Nanjing Shanglong Communications

opportunities



RSB paves way for sustainable biofuels into EU New certification programme recognised by European Commission Smaller biofuel producers may opt to seek certification as a group

By Stephen Ng

Steering Board chair Barbara Bramble. Among others, it will benchmark itself against the Roundtable on Responsible Soy and the Roundtable on Sustainable Palm Oil, but promises to be more ﬂexible and needs-oriented. In order to engage and secure the buy-in of all major stakeholders in the biofuel industry, the RSB Steering Board comprises seven chambers of governance, namely, the feedstock producers; biofuel producers; retailers, transporters and investors; NGOs and trade unions; development, smallholder and indigenous people organiRSB certification process flow chart

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The Roundtable on Sustainable Biofuels (RSB) certification is in the offing and will specifically address various environmental and industrial standards for an increasingly important type of renewable energy. At the recent RSB Services roll-out programme for Asia Pacific, held in Kuala Lumpur, key regional members and stakeholders came together to share their knowledge and views on the road ahead. According to RSB services manager for certification and implementation Peter Ryus, the standard, which has already been officially recognised by the German authorities, will soon be formally recognised by the European Commission. The RSB also recently became a full member of the ISEAL Alliance, a leading global association for social and environmental standards. The RSB standard, Ryus says, was designed to address the requirement for certification by the European Union (EU), where the demand for biofuels by member states is expected to increase with the launch of the EU Renewable Energy Directive (RED) in 2009. Under the RED, every member state has a mandate to cut carbon emissions and help improve fuel security by expanding fuel diversity. (The full list of national RED targets is available online at http://ec.europa.eu/energy/renewables/ targets_en.htm) Besides contributing to stronger business practices, Ryus believes certification will also promote management systems that enable businesses to effectively measure performance. As he puts it: “You can’t manage what you don’t measure. Measuring and monitoring the sources and deployment of business resources leads to more efficiency.” The standard is designed to be a “global and holistic, credible and practical” system, according to RSB

sations; environment, conservation and climate policy organisations; and research, government and intergovernmental organisations. For biofuel producers based in Asia and worldwide, the RSB, as a certification standard, will open new doors of opportunities into fast-growing, advanced markets such as the EU. One certification is all it takes for producers to penetrate all 27 countries in the EU. If all goes well, biofuel producers could be the next generation of sheikhs, whose fortunes turned overnight with the discovery of vast fossil fuel stores in member states of the Organisation of the Petroleum Exporting Countries (OPEC). According to Cosmo Biofuels Group’s Khoo Hock Aun, even if the aviation industry were to replace 10% of its fuel with biofuels by 2030, it would require over 20.4 million tonnes of oil equivalent (Mtoe) in biofuels. Companies like Boeing are conducting major flight tests using biofuels. Following the successful maiden flight by

   •   

 

Peter Ryus: RSB standards support management systems that measure performance more eﬀectively

Barbara Bramble: The RSB standard is designed to be a global, holistic, credible, needsoriented and practical system

KLM in June this year, many more will venture into biokerosene use. All eyes are now therefore on the EU market to see how one can secure a slice of the emerging pie.

Exporting to Europe According to Nina Cinkole, the EU’s third secretary for energy, environment and climate change trade and economic relations, based in Malaysia, the EU RED presents new opportunities for biofuel producers in the European Union and abroad. “The RED is, in fact, a driver for sustainability of biofuels in the international market,” she says. “It is never intended to be a trade barrier.” Malaysia, for example, can brace for bigger exports of its biodiesel to EU member states because currently, out of the 89,609 tonnes of biodiesel worth RM266.53 million (US$89 million) exported by Malaysia in 2010, only 45% Climate & Energy Package 2008

The 20-20-20 EU policy

+20%

-20%

Renewables in energy mix

Energy consumption

Greenhouse gas levels     •  

Khoo Hock Aun: If the aviation industry used even 10% biofuels by 2030, over 20.4 million tonnes of oil equivalent would be required

Nina Cinkole: The EU’s RED is not a trade barrier but a driver for biofuel sustainability in the international market

(or only 40,660 tonnes worth RM113.7 million) is exported to the European market. According to Cinkole, the 20-2020 EU policy, which addresses climate change, stipulates that by 2020 there should be a drastic 20% reduction in greenhouse gas emissions against 1990 levels, a 20% cut in energy consumption through energy efficiency, and that 20% of energy consumption be from renewable sources (see chart below, left). There is also a specific 10% target for renewable energy use in the transport sector. “The RSB certification will definitely be a great help for producers in the region to export to the EU market,” she suggests.

Cost of entry However, as with every certiﬁcation process, there is a cost involved. The cost of certiﬁcation has been a major

Stephen Emmert: Expects the RSB to be consistent and assist in finding pragmatic solutions for compliance

Adrian Suharto: The RSB is flexible enough to suit a diversity of feedstock and recognises the importance of continuous improvement

hurdle, especially for smaller producers, but Bramble is quick to point out that small shareholders can jointly seek certification as a group. “We are not making it more difficult for small producers,” she says. “What’s important is that the certification offers a very good market entry into the big EU market and elsewhere.” Ryus elaborates: “The cost of certification varies with the size and scope of the operation and the steps in the chain of custody the operator occupies. Generally, there are three types of costs involved that are associated with certification. They are either related to the audit, compliance, or both administrative and licensing fees.” Apart from the auditor’s fees and other administrative and logistical costs, there are compliance costs to be met in order to align operations with

Neste Oil lauds RSB’s flexibility Sharing from a biofuel producer’s perspective, Adrian R Suharto, sustainability manager of Neste Oil, based in Singapore, says of the RSB: “It is flexible for all feedstock. The availability of screening tools is also a very good system, which will minimise the number of assessments by experts. What I particularly like is that RSB acknowledges the need for continuous improvement.” The Finnish government-linked company, listed on the NASDAQ OMX Helsinki exchange, produces 15 million tons of refined oil products per year and has a combined capacity of 1,180,000 tons per annum for its three NExBTL

plants – two that came on stream at the Porvoo, Finland refinery in 2007 and 2009 and a third in Singapore in November 2010. A fourth plant is being constructed in Rotterdam and will begin production in 2011. The Singapore plant will have an annual production of one billion litres of high-quality and clean biodiesel, which the company believes is able to reduce greenhouse gas emissions by 40% to 80%. Currently, feedstock includes palm oil, animal fats and rapeseed oil, which are used to produce biofuels 28% lower in particulates, 28% lower in carbon monoxide, and 50% lower in hydrocarbons.

RSB certification – challenges faced Experience from certifications such as the Forest Stewardship Council (FSC) and the Roundtable on Sustainable Palm Oil (RSPO) shows that voluntary standards have helped producers improve their reputation and capture market share. The same can be expected for those who go for RSB certification, but the challenges faced have to be overcome. As Adrian Suharto of Neste Oil Singapore points out, there are many challenges and opportunities for RSB certification in the region. He says RSB needs to learn from the mistakes of other certification systems and adapt. Boeing’s Stephen Emmert adds: “Among the expectations from RSB Services are that the system has to be pragmatic, consistent and interoperable. It is important that, in order to minimise the cost impact of compliance, RSB Services must assist in finding pragmatic solutions for compliance.”

KLM and Boeing start paradigm shift On June 29, KLM Royal Dutch Airlines made headlines as the first airline in the world to operate a jumbo jet commercial flight on biokerosene – a blend of kerosene and biofuel produced from used cooking oil. Flight KL1233, which took oﬀ at 1230 hours with 171 passengers on board a Boeing 737-800 from Schiphol bound for Charles de Gaulle in Paris, demonstrated the commitment of Boeing 737-800 EU member states to achieving EU RED targets by 2020. being designed to increase operational Aircraft manufacturer Boeing eﬃciency,” he says. “However, the made this maiden flight possible. In next paradigm shift will have to come pursuing sustainable aviation biofuel, from the fuel that we use. The biofuels Boeing hopes to achieve a target of that we use have to be sustainable, 600 million gallons of bio content a to meet precisely the same technical year by 2015. It has completed fuels specifications as traditional kerosene and approval with successful flight tests require no infrastructure modifications in 2011 and will look into feedstock or any adjustments to aircraft engines. pathways and airport infrastructure It must be able to mix into today’s Jet-A before going into commercial production. fuel or be used as an alternative.” Amy Bann, director of environmental The pressure to cap and ultimately policy for Boeing’s commercial airplanes reduce greenhouse-gas emissions will division, says recent KLM and Lufthansa increase from next year (2012). The announcements “signal to governments, European Commission’s plans to make fuel processors, and the financial flights within, into, and out of Europe community that the demand and market subject to its carbon-trading scheme will for these fuels exist.” cost the aviation industry an estimated Boeing’s regional director for €1.4 billion (US$2 billion) next year commercial airplanes, USA, Stephen and about €7 billion by 2020, according Emmert says that improvements to a March 2011 report by Oslo-based to Boeing aircraft have produced a consultancy, Thomson Reuters Point significant 90% reduction in noise Carbon. For this reason, Boeing has footprint, 70% fuel improvement, and aggressively conducted numerous tests reduced CO2 production. “A large part using biofuels of late and its success to of the carbon-neutral growth has been date suggests imminent exponential achieved using less fuel, as airplanes are growth in biofuel demand.

© ..

the RSB Principles and Criteria, which cover, among others, legal issues; planning, monitoring and continuous improvement; greenhouse gas emissions; human and labour rights; rural and social development issues; local food security; conservation; soil; water; air; use of technology; inputs and management of waste; and land rights. “These can vary depending on the nature and size of the operation,” adds Ryus. However, both Ryus and Bramble stress that cost is not something that should deter biofuel producers from pursuing certification. At best, RSB Services imposes a minimal cost of application, which covers both administrative and licensing fees. The process is similar to any other certifications. Immediately after a participating operator decides to go for certification, it has to carry out its own risk assessment and self-evaluation before applying to the RSB System Operating Entity (SOE) in each country. If the application is approved by the SOE, the participating operator will look for an independent certification body to carry out the audit to ensure compliance with RSB standards and certification systems. (See RSB certification process flow chart on page 9.)

Recent sustainable biofuel flights Date/Year

Airline

Aircraft

Engine

Feedstock

February 2008

Virgin Atlantic

747

General Electric

Coconut and babassu

December 2008

Air New Zealand

747-400

Rolls-Royce

Jatropha

January 2009

Continental Airlines

737-800

January 2009

Japan Airlines

747-300

Pratt & Whitney

Camelina, jatropha, algae

April 2010

US Navy

F/A-18

General Electric

Camelina

June 2010

Royal Netherlands

AH-64 Apache

General Electric

Algae and cooking oil

June 2011

Boeing

747-8F

General Electric

Camelina

June 2011

Boeing

737-800

Camelina, jatropha, algae

Waste oil

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opportunities

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Cleantech start-ups: Beyond the valley of death Bypass the “valley of death” by leveraging on existing infrastructure and expertise Venture capitalists’ perspectives on funding, going global

Many cleantech startups are unable to obtain funds to scale up to the point of cost-competitiveness. This funding gap, dubbed the “valley of death”, occurs between the seed or early stage when they are supported by venture capitalists, universities and the government, and the later stage when they are about to scale up and achieve competitiveness in the market. At this later point, they would secure funding from banks and other equity partners. “A lot of work goes into breaking this circular dilemma. To raise capital, you require proof of cost competitiveness. To achieve the latter, you need scale, and to scale up you need capital”, says Ravi Viswanathan, general partner of New Enterprise Associates (NEA), a venture capital and growth equity ﬁrm in the US. Viswanathan was

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By Mallika Naguran

a keynote speaker at the Clean Technology Investment World Asia 2011 Conference held in Singapore in July. The event, organRavi Viswanathan ised by Terrapinn, saw the sharing of expertise and views by, amongst others, international private equities (PE), limited partners (LP), banks, corporate investors, utilities and cleantech clusters. “Projects utilising new technology are difﬁcult to ﬁnance as there are limited pockets of capital willing to take on the risk over a long period of time,” says Viswanathan. NEA, he says, look into what companies can do to be cost competitive.

“Companies, with help from their investors, must leverage the proven existing global infrastructure and manufacturing expertise to scale and compete effectively,” he says. He says a US-based photovoltaic cell market halved its capex by operating in China and taking advantage of the incentives there. To be cost-effective, Viswanathan proposes: • Manufacturing: Scale internationally. Make use of aggressive government incentives in South-east Asia and China, and their lower labour costs. Being nearer to raw materials, suppliers and customers makes logistics more efﬁcient. • Contract manufacturing and supply chain: Partner specialists in adjacent industries (e.g. electronics) for rapid, cost-effective scale-up. Use existing raw materials and supply chain and leverage on global logistics networks. • Go-to-market: Look internationally for initial market penetration (especially for US-based companies). This often leads to faster time to market because clean energy is not as freely available in other parts of the world. • Strategic partnering: Partner with an established international company. Many ﬁnancially strong companies want to get into the game. They

Singapore’s four ingredients to become a cleantech hub

Technology: Research and innovation will be the growth driver for the cleantech industry, with the National Research Foundation pumping in S$195 million (US$115.3 million) funds into the clean energy sector, complementing the S$140 million to boost water technologies. The Solar Energy Research Institute of Singapore (SERIS), home to 160 researchers, is collaborating with Norway’s REC and China’s Trina Solar. The Nanyang Environment & Water Research Institute (NEWRI), an integrated research centre in water and environmental technology, works with companies like Toray and Sembcorp on joint R&D. Although Singa-

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tions. Singapore’s slew of international green events are springboards for companies to access global markets.

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Singapore eyes the cleantech industry as a key sector for economic growth. “Singapore oﬀers global cleantech companies a unique combination of four key ingredients, all in one place,” says Leo Yip, chairman of Singapore’s Economic Development Board. They are, as illustrated by Yip:

Leo Yip, chairman of Singapore Economic Development Board

pore does not have a wind market, its capabilities in material sciences and control systems have attracted R&D centres from leading wind companies such as Vestas and Gamesa.

Market: The island nation is ready as a test-bed for green solutions. Its water agency PUB allows companies access to its infrastructure to test advanced water technologies. Singapore’s new Cleantech Park allows companies to showcase systems-level cleantech solu-

Talent: Initiatives are taken to develop cleantech manpower capabilities of overseas and local talents across all levels. Companies such as Vestas, GE and Siemens find talent availability the attraction in setting up innovation facilities in Singapore.

Capital: A growing base of venture capitalists, private equity firms, banks and corporate investors in Singapore provide the funds needed for companies intending to be based in Asia. The Singapore Economic Development Board Investment (EDBI) is interested in companies that wish to grow in Asia through Singapore. Recent EDBI investments include home-grown tidal energy turbine developer Atlantis Resources Corporation and US-based next-generation battery technology development company Contour Energy Systems.

New global collaboration to link up markets

 

The Global Cleantech Cluster Association (GCCA) was formed about two years ago to bridge the networking gaps among the cleantech clusters around the world. Founder and chairman Ben Taube stresses “collaboration” as its key value. Ben Taube “We had clusters that were trying to figure out how to open up to the global market,” says Taube. “For example, clusters in Finland wanted to help their companies have access to clusters in San Diego. And San Diego wanted to have access to Belgium.” And so GCCA was hatched to “bridge this global puzzle”. GCCA’s three other founding members are Taube’s partner Shawn Lesser also from the US, Nina Harjula from Finland and Christian Hauselmann from Switzerland. “We can be an umbrella organisation to allow clusters to have collaboration and company access at the global level.” Taube explains that before, European clusters would do business only within. Now they can penetrate Asia. “The purpose of GCCA is to make local,

global,” says Taube. GCCA’s initial target of having 20 cleantech clusters has been surpassed; it now has more than 40 members, the latest being Belgium and Brazil. GCCA has also been working closely with the Singapore Business Federation and hopes to forge partnerships with Singapore. GCCA also supports cleantech companies with its GCCA Later Stage Award. The award seeks out promising later stage cleantech companies in ten categories, including renewable energy, water, waste, advanced materials, energy eﬃciency and agriculture. Its 11th category - Most Impactful Technology – recognises companies that have greatly improved people’s living conditions. Out of 160 companies nominated for the award, only five are from Asia (all Koreans). Taube cited GCCA’s short arm – being a young organisation – in not creating enough awareness of the award and lack of local partnership in sussing out nominees as reasons for not having greater representation from other Asian countries. To nominate a later stage company, go to www.globalcleantech.org

Let passion for sustainability be the driver “Invest, not speculate,” says Dr Vivek Tandon, co-founder and general partner at Aloe Private Equity. Says Tandon, speculation is myopic and does not lead to the kind of investment that will bring about socioeconomic benefits. His model of investing is one Dr Vivek Tandon that identifies the key problems in the environment and social sectors, and then sources the company to invest in with a view of building a strong cash flow to generate businesses for value creation. This is why he prefers not to call his investments “cleantech” but “social and environment sustainability” projects. Too many investors have the passion for numbers alone. “When you have a passion for social and environmental sustainability, you have a much better probability in getting it right,” he says. Aloe does not think it is ethical to replace the founder or chief executive for quick returns. He prefers to build the leader’s capabilities and to provide 

Different approaches Other speakers at the conference also shared their take with cleantech companies. Michel Birnbaum, general partner with iGlobe Partners, is hands-on when working with an investee. He says all partners must be aligned with the business management and strategy. iGlobe focused on developing the Michel Birnbaum human resources of a cleantech company it invested in 11 years ago and the company has since grown from 11 to 50 people. “You are investing with people; you can have an OK product run by a great management team and they should be able to take the product away.” He adds that iGlobe’s priority is to “get optimal exit as opposed to maximising the returns”. Melissa Guzy, managing director with VantagePoint Capital Partners in Hong Kong, cautions against over-optimism in cleantech sector investment. She says the public markets did not Melissa Guzy perform well last year but education and awareness will change the perception of cleantech industry and improve valuation. Guzy is wary about companies going global too quickly. “Be successful in your own country first before thinking of going to China and setting up something there,” she says. A less risky solution would be to find a local partner to team up with in China. “There are lots of great entrepreneurs and local solutions there that work with the market,” she says. Viswanathan urges investees to be patient and not “play to fear and greed” simply because the market is huge and companies are brutally competitive with each other. “Don’t open the kimono too early,” he says. “Be cautious on who you do business with; be ready to travel; do your homework and try to find a win-win situation.” 



have proven manufacturing knowhow and scale, regional knowledge, relationships and regulatory connections.

the right people to support him or her. “You have to build a relationship and work with the founder to make the improvements and changes, and this can take seven to eight years,” he says. “You definitely lose out on quick returns but with partnerships and relationships, by managing downturn risks and giving them steady returns, you win in the long term.” Aloe’s track record guided by this set of ethics is telling; out of 11 investments made since 2004, ten are successes. This concept of investment, according to Tandon, involves looking beyond hype to long-term trends that will withstand economic fluctuations. Instead of investing in traditional “hype” clean energy sources, Aloe has, since 2003, guided its portfolio of companies into biomass energy generation, recycling of waste PET bottles, polyester filament yarn and even new plastic bottles, coal bed methane extraction, recycling metals from waste electronics, battery recycling, and paper recycling with improved eﬃciencies.

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EE to drive next wave of opportunities

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Having put in place a feed-in tariff mechanism for renewable energy-generated electricity, Malaysia has now embarked on an energy-efficiency programme. It has rolled out the first of five initiatives under the Sustainability Achieved via Energy Efficiency (SAVE) programme – a RM50.2 million rebate scheme to promote the purchase of energy-efficient refrigerators, air-conditioners and commercial chillers. Detractors may tie this to the June decision to raise electricity tariff by about 7%. But really, the SAVE programme has a lot going for it, if the implementation is speedily and properly carried out. It will boost an industry that may be worth billions of ringgit. Energy efficiency, however, must come with genuine consumer behavioural changes for the country to realise the projected benefits. Reports from pages 16 to 26

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cover

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 

Malaysia rolls out energy eﬃciency roadmap Ministries being pushed to cut energy use by 10% Opportunities abound for energy managers and energy services companies

All stories by Ann Teoh

  ,    , 

The leading brands that are supporting the SAVE rebate scheme. Some of them have voluntarily given discounts on top of the rebates subsidised by the government. Minister of Energy, Green Technology and Water Datuk Seri Peter Chin is in grey jacket, and on his right is ministry secretary-general Datuk Loo Took Gee

Malaysia has rolled out a high-profile programme to be an energy-efficient society – a necessary policy companion to the decision to hike electricity tariff by about 7% in June. What happens now will be a good workout for all energy consumers before the proposed Energy Efficiency Act comes into force, expected to be in 2013. For the corporate sector, the current programme launched on July 7th really is an extension of whatever incentives that have been offered for at least two years. There are already generous tax incentives for corporate spending in energy efficiency and renewable energy but the government only added energy efficiency (EE) as a key national priority in its Economic Transformation Programme (ETP) in June. EE is encapsulated under the EPP9 (Entry Point Project 9), as it is     •  

officially called in the ETP. However, it is now rebranded as SAVE (acronym for Sustainability Achieved via Energy Efficiency), and comprises five key initiatives: • Government leadership by example in energy efficiency • Stimulating the sales of energyefficient equipment and appliances • Promoting the co-generation of electricity • Promoting building insulation • Stimulating the sales of energyefficient cars in the market

Minister of Energy, Green Technology and Water Datuk Seri Peter Chin launched on July 7th a SAVE rebate scheme aimed at stimulating the sales of energy-efficient equipment and appliances. The scheme, which provided fixed subsidies for purchase of energy-efficient air-conditioners and refrigerators (both for householders), and replacement chillers (for the commercial sector), will cost the government RM50.2 million (US$16.8million). While the subsidy scheme has a built-in “wow” factor – what with a mascot, road shows at shopping malls and even a video commercial – the most significant of the initiatives, and the one most likely to bear fruit quickly, is the government leadership initiative. With little fanfare, Chin’s ministry has been pushing the government

EPC practitioner E-Eye Sdn Bhd director VTR Dharamarajah… government projects more popular as there is security of payment

“We have identiﬁed 128 government buildings that use more than 6 million kWh a year, and the government has more than 20,000 buildings, some big, some small,” Zaini says. Change is not easy even if it is obviously for the better as most

Power consumption by the public sector's biggest consumers: September 2009 to October 2010

128

goverment buildings use more than

6 million kWh a year

28 hospitals consume

367,587,657 kWh at the estimated cost of

17 ministries

22%

RM114,091,659

14%

consume

360,592,831 kWh at the estimated cost of

RM112,901,615

per year

20%

25 universities

44% 56 others

(states/agencies) consume

consume

603,464,085 kWh

543,961,738 kWh

at the estimated cost of

RM188,944,605

RM170,314,420

per year

“The government has more than 20,000 buildings.”

 

itself to cut down its own power consumption. The top guzzlers – 128 government facilities – each use at least 6 million kWh a year – collectively spend a whopping RM587 million worth of electricity at the tariff of RM0.31 sen/kWh from September 2009 to October 2010. The tariff is today RM0.3354 kWh. A 10% reduction alone would save the nation 187 million kWh of power a year, or RM58.7 million at the current power tariff. To encourage its vast machinery to take energy savings more seriously, the government will soon make energy efficiency a key performance indicator of its heads of agencies, says Zaini Abdul Wahab, head of Energy Efficiency at the Ministry. He says the government wants its top energy guzzlers to increase energy efficiency by 10%. The biggest power users are hospitals, universities and other state agencies.

Energy Commission’s Francis Xavier Jacob… the Commission may monitor companies that use more than 3 million kWh in six consecutive months

ministries and private enterprises have other urgent priorities. Energy efficiency is generally treated as a niceto-have if we have time and money. Money, however, need not be an issue under the Energy Performance Contracting (EPC) scheme as the risks and benefits are shared between the EPC professional and the client. The government wants to adopt this approach, says Zaini, as it reduces financial burden. The EPC company audits energy use and proposes changes, but does not stop at that. It also buys energysaving equipment with its own money, installs it, monitors the savings, and the savings are then shared between the EPC and the client. EPC practitioner E-Eye Sdn Bhd director VTR Dharamarajah says a good EPC is able to recoup its investment within two to three years, and enjoy the profit for the remaining years of the contract. Cost is no small matter. A chiller of 300 refrigerant tonnes (RT) costs some RM300,000 and that does not include the cost of auxiliary parts. The SAVE scheme gives a rebate of RM200 per RT to those who replace their old chillers (15 years or older) with more efficient ones. Nonetheless, the ability of the ministries to evaluate EPC proposals may still be an issue, and there are also not enough energy managers in the country. There are only 140 energy managers, and ideally, the Energy Commission wants 1,500 such managers for the 1,500 facilities in Malaysia that use more than 3 million kWh in six consecutive    •   

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 

Opportunities at a glance

The Promotion of Investment Act 1986 oƨers:

• Training of energy managers. There are only about 140 of them now. The industry can absorb some 1,500

10-year pioneer status income tax holiday

3@W @KKNV@MBD ENQ B@OHS@K DWODMCHSTQD NM RE and EE

Import duty exemption $WDLOSHNMR ENQ HLONQSDC L@BGHMDQX DPTHOLDMS L@SDQH@KR RO@QD O@QSR @MC BNMRTL@AKDR TRDC CHQDBSKX HM SGD RE and E$ OQNBDRR @MC SG@S @QD MNS OQNCTBDC KNB@KKX

Sales tax exemption $WDLOSHNMR ENQ KNB@K L@BGHMDQX DPTHOLDMS L@SDQH@KR RO@QD O@QSR @MC BNMRTL@AKDR

months, according to its director of Energy Management and Industry Development Francis Xavier Jacob. Jacob says the Efficient Management of Electrical Energy Regulations 2008 requires power utility companies to alert the Commission on such big users. The commission may then instruct these companies to engage energy managers and submit reports. Jacob says the commission has received 150 reports so far. Things seem to be moving slower than desired but industry sources also say the Efficient Management of Electrical Energy Regulations itself took 12 years from inception to being gazetted. Actually, the Malaysian government has been fairly generous where energy efficiency is concerned. Any company embarking on renewable energy or an energy efficiency exercise     •  

Dr KS Kannan, director of the Centre for Energy Studies at the Sultan Iskandar Institute of Urban Habitat and Highrise… power tariﬀ increase will lead to demand for energy eﬀeciency

may apply to enjoy a range of tax benefits. The Promotion of Investment Act 1986 offers a number of benefits (see list at left). In energy efficiency, both the demand and supply side, and everyone else, benefit. Minister Peter Chin says energy efficiency initiatives will generate a gross national income of RM5.1 billion by 2020 but the figure, also cited by EPP, does not give a breakdown. Whatever the macro figures may be, on the ground, the energy guzzling projects are there to be tapped, the energy savings are waiting to be harvested, and for the 140 or so energy managers there’s money to be made. Chiller manufacturers participating in the SAVE programme such as Hitachi, Daikin, York, Carrier, Trane, DB and Smartech are waiting for business to roll in, in a trade that has been described as extremely competitive. If power tariff continues to rise, things may move quickly, and in fact, this is what EPCs are hoping for. Malaysia Association of Energy Services Companies (MAESCO) president Zulkifli Zahari says the industry is ready and waiting. In fact, MAESCO is collaborating with the Energy Commission to train more energy managers. Dr KS Kannan, director of the Centre for Energy Studies at the Sultan Iskandar Institute of Urban Habitat and Highrise, thinks that unless the power tariff increases, the urgency for energy

 

100% investment tax allowance

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Tax holiday for new businesses embarking on renewable energy (RE) and DMDQFX DƧBHDMBX $$ OQNIDBSR

• Energy audits and energy performance contracting in the public sector, especially for those with the financial backing to go for big investments

• Manufacturers and distributors of chillers and auxiliary parts like cooling towers and pumps can look forward to better sales • Producers and vendors of appliances/equipment for a more energy-eﬃcient environment. Products include: – Energy-saving lights and inverter air-conditioners – Roof insulation – Sealants for glass – Low-E glass – Shades – Energyeﬃcient roof tiles • Financial services – Loans for Energy Services Companies (ESCOS) to finance energy performance contracts – Loans for companies which go into EE but prefer to reap the savings directly • Logistics for new equipment • Overhaul and recycling of old chillers • Green building certification bodies and professionals may see higher demand for their services

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efﬁciency will not be there. The centre has sent out proposals to various companies, to lukewarm response. A top-down approach is necessary, say those in industry circles. Dharamarajah adds: “The law is necessary to push the EE projects going. The government needs to take the lead.” He says the commercial sector is generally uninterested, even when offered a ﬁnancially

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risk-free option via the EPC. Back to the government taking the initiative, to get buy-ins, the ministry recently organised two separate workshops: the ﬁrst for 20 public universities, and the second for 25 ministries. There will be more to come. The universities’ workshop discussed implementation plans in university campuses, with the

consensus that all public universities should implement energy management systems, and that EPC be adopted as a means to beef up efﬁciency. The ministries’ workshops also looked at implementation plans to meet the target of 10% savings of electricity annually. In both cases, the Ministry of Finance has to work out a payment mechanism for the shared-savings under the EPC.

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Five-pronged approach to cutting power usage Targets chillers, co-generation, insulation, electric vehicles and domestic appliances

Denmark’s success story in energyefficiency has obviously left an indelible mark on Malaysian Minister of Energy, Green Technology and Water Datuk Seri Peter Chin. He was awed by the fact that the Scandinavian country could continue growing economically without having to increase its power generation over the last 30 years. Stressing the point several times when he launched Malaysia’s Sustainability Achieved via Energy Efficiency (SAVE) Programme early July, Chin says: “This is how we should model our economic growth. There’s something for us to discover on how to do it.” He says if Malaysia can work towards being more energy-efficient, fewer power plants need to be built, or at least they can be delayed. The SAVE programme covers five initiatives: the government leading by example by cutting down its energy consumption, encouraging the use of energy-efficient appliances, promoting co-generation, promoting building insulation and stimulating the growth of energy-efficient cars. On July 7th, Chin launched the first of the SAVE initiatives – the one

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Energy eﬃciency KPIs for government agency heads

Zaini Abdul Wahab, Head of EPP9… even a 10% cut in consumption would mean millions of ringgit in savings

that encourages the use of energyefﬁcient appliances. The SAVE Rebate programme offers discounts for the purchase of air-conditioners and refrigerators for consumers, and chillers for commercial use. The SAVE rebate programme is expected to save some 127.3 GWh of energy, equivalent to 425,000 houses consuming an average of 300 kWh/ month a year. This assumes that 100,000 energy-efﬁcient refrigerators, 65,000 air-conditioners and 72,000 RT

of chillers will be bought this year. Chin says this also means 26 MW less generating capacity, and a savings of RM32.04 million (US$10.75 million) this year based on current tariff. If one adds up the savings based on the product lifespan of seven years for refrigerators and airconditioners, and 15 years for chillers, the total savings would be RM382.1 million. “For Malaysia, electricity consumption is expected to grow at an average annual growth rate of 3% to 4% from 2010 to 2020 at the current installed capacity of 20 GW,” he says. Malaysia’s per capita emission of carbon dioxide is 6.7 tonnes per capita, lower than many developed countries. “The SAVE programme will be able to save our carbon dioxide emissions by 87,810 tonnes for 2011, and a total of 910,605 tonnes across the lifespan of the energyefﬁcient appliances. This is part of our commitment to cut carbon intensity by 40% in 2020 based on 2005 levels,” he says.    •   

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Green Purchasing Asia spoke to Zaini Abdul Wahab, head of EPP9, Energy Efﬁciency, at Chin’s Ministry for details on SAVE’s ﬁve initiatives.

Leadership by example in energyeﬃciency

This simply means the government will start cutting down on its own energy use. The biggest energy users are government hospitals, public universities and ministry buildings. Its top energy guzzlers comprise 128 facilities that collectively use more than RM587 million worth of electricity a year. Seventeen ministries alone spend more than RM112 million on electricity a year. “We want them to cut down by 10%,” Zaini says, adding that things are being put in place so that the Energy Performance Contracting (EPC) method of retrofitting would be possible. Under the EPC method, the energy efficiency contractor pays for the new energy-efficient fittings such as chillers and lighting upfront and will be paid back from resultant savings. The payment mechanism is being worked out by the Ministry of Finance. The government also wants its heads of agencies to be accountable for energy efficiency by making it as part of their key performance indicators (KPIs). The decision was made by the Economic Council meeting on May 27th.

sales of energy-efficient 2 Stimulating equipment This is the first of the five initiatives to be officially launched. This RM50.2 million initiative revolves around purchase rebates and awareness building. Of that sum, RM40.9 million is for rebates (65% for the households, and 35% for the commercial sector). The government is starting with air-conditioners and refrigerators for households, and chillers for the commercial sector. “We want to make it attractive,” says Zaini, when commenting on the RM100 to RM200 rebates in a retail market where RM10 to RM50 discounts are considered     •  

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generous. The idea is to catch the people’s attention so they start looking at energy-efficient items. The SAVE rebate programme attracted 12 air-conditioner and refrigerator brands and seven chiller brands (Carrier, Daikin, DB, Hitachi, Smartech, Trane and York). At no cost to the brand owners and distributors, this exercise is expected to spur the market for household appliances, and encourage building owners with chillers older than 15 years to change theirs. Within a week of the launch, there were two applications for 12 chillers for a total capacity of 10,170 refrigerant tonnes (RT), wiping off some 15% (or RM2.2 million) from the available quota of 72,000 RT (RM14.4 million), on a first-come, first-served basis. A week later, another application came in for 1,300 RT. The approval for rebates for chillers involves pre-installation and post-installation inspection by ministry representatives to ensure that they meet specifications. The rebate for a 300 RT chiller is RM60,000, and chiller capacity can be up to 1,500 RT.

Promoting the co-generation of 3 electricity Zaini says the government wants the industry to optimise whatever energy it generates as part of its production process. “For example, the industry produces steam for its processing. Steam can also be used to generate power but the issue is sometimes with gas supply. That’s why we have to resolve some policy issues on gas for co-gen,” he says. “Co-generation will improve system efﬁciency from 40% to 80% because the total fuel is being utilised. The heat produced by industry is quite high, good enough to produce power to run the generator.” Zaini says co-generators pay a special stand-by power tariff but the feedback received is the rates are not economically viable. Investment for co-generation is also high. The government is thus reviewing the mechanism with the power utility company. He says the ministry is also

Promoting building insulation to conserve energy

Co-generation plants make the most out of fuel

building does not escape. Zaini says the government is looking at the mechanism to encourage building owners to save energy through proper insulation. “If you have proper insulation, you may not even need to put an airconditioner in the house because you prevent heat from coming in. This is good for the lower-income group. If they cannot afford an air-conditioner

Stimulating sales of energy-eﬃcient cars in the market

“The government is preparing the infrastructure for electric vehicles; this will be a road map for the future that covers facilities such charging stations and everything else,” says Zaini. For now, until the end of 2011, hybrid and electric cars and motorcycles are exempted from import duty and excise duty. The government is also looking at reducing the tax rate on imported hybrid and electric vehicles and at cash rebates for locally manufactured hybrid / electric vehicles.

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Good insulation saves energy because unwanted heat does not enter a building, and cool air in a

and its running costs, they can insulate the roof,” he says. “We are targeting the domestic market because commercial buildings already enjoy incentives, such as tax exemptions, when they implement energy-efﬁcient measures.” The industry enjoys ﬁscal incentives for two types of insulation material (mineral wool and perlite) endorsed by the Energy Commission.

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looking at all options for a more energy-efficient environment, including tri-generation. Tri-generation is the simultaneous production of cooling, heating and power in one process. A tri-generation plant, in non-engineering terminology, is a co-generation plant that has added absorption chillers that convert the waste heat a co-generation plant would have wasted into useful energy in the form of chilled water. It may be up to 50% more efficient than co-generation. In hospitals, universities, military bases, downtown or a group of office buildings, they have been referred to as a "district energy system" or "integrated energy system" and can be much more efficient and environmentfriendly than co-generation.

Chillers setup in First Avenue, a green oﬃce building in Bandar Utama, Selangor, Malaysia    •   

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Rebate scheme to stir consumers into action Rebates are substantial and attractive, dealers say Chiller applications have to go through verification process

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The SAVE Rebate programme aims to catalyse the use of energy-efficient equipment and appliances in the country. It is both an awarenessbuilding exercise that includes national road shows as much as it is a rebate scheme aimed at stirring the people into thinking and acting green. “This is something new; we want to make it attractive,” says Zaini Abdul Wahab, head of Energy Efficiency at the Ministry of Energy, Green Technology and Water, of the rebates that are also considered generous by industry leaders like Frankie Tan, executive director of Hitachi Sales Malaysia and chairman of the Malaysia Electrical Appliances Distributors Association (Meada). Tan says the rebate scheme will encourage people to look at energy efficiency, and if successful, the government could add more products to the list. “Depending on the size of the refrigerator and the purchase price, the RM200 rebate is substantial. If one buys a one-door fridge that costs only about RM650, a RM200 rebate is a big sum,” he says. The cheapest refrigerator on the SAVE list are a few models of the 144-litre Sharp that sells for RM649.

Frankie Tan, chairman of the Malaysian Electrical Appliances Distributors Association (Meada)… government rebate is quite substantial     •  

The beneficiaries of the firstcome, first-served rebate programme (until end 2011) are owners of commercial buildings with working chillers that are older than 15 years, and the general public. The www.saveenergy.gov.my website allows interested parties to check their eligibility, appliance models and brands, prices, and the list of participating retail outlets. For air-conditioners and refrigerators, qualified Malaysians need to print the rebate vouchers and claim them at participating outlets within a month. Those without Internet access can visit their power utility company service centres. The process is more complex and conditions more stringent for chillers. “A rebate of RM200/RT is given for the replacement of working chillers that are used for comfort cooling, like those used in offices, not factories. The chillers must also be older than 15 years. They must also be in working condition,” says Zaini. Repair and/or replacement of associated subsystems does not come under the programme, and neither are chillers that are shared for offices and processes. As most chillers are between 300 RT and 1,500 RT, the rebate per installation would be worth at least RM60,000 and up to RM300,000. Chillers cost some RM1,000/RT. With the rebate, programme participants save about 20% off the chiller price. “You send the application to the ministry, and before we approve, we send our people to check the site, to make sure you are submitting the right details and to ensure that there are chillers where you say they are, and they must be in working condition, not in an abandoned building. “Then, the verifiers have to come back to the committee with the reports. Once pre-approved, the applicant can buy the chillers. We

Appliances Rebate Scheme Chillers • Rebate: RM200/RT • Registered Malaysian private entities • Replacement for working condition chillers, older than 15 years old, that are used for comfort cooling • Seven brands No. of units: 72,000 RT Value of rebates: RM14.4 million Refrigerators rated 5-star by Malaysian Energy Commission • Rebate: RM200/unit • Models up to 400 litres only • 12 brands Eligibility: • Malaysian applicant • Tenaga Nasional, Sabah Electricity or SECSO customers • Peninsula customers must also show electricity bills of an average of 200 kWh-400 kWh a month over six months (between RM43.60 and RM110.40 a month) No. of units: 100,000 units Value of rebates: RM20 million Air-conditioners rated 5-star by Malaysian Energy Commission • Rebate: RM100/unit • Split-unit models up to 2.5 HP only Eligibility: • Malaysian applicant • Tenaga Nasional, Sabah Electricity or SECSO customers No. of units: 65,000 units Value of rebates: RM 6.5 million

Total rebates:

RM40.9 million

give applicants six months from the time of approval, after which the quota is opened up to others again. “Once installation is completed and the chillers are running, we send our veriﬁers again to ensure they meet the MS 1525 standard. From the time

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they apply to the time they get the ﬁrst approval, typically it will be one month, including veriﬁcation. The sooner you install and commission, the sooner you get your rebate,” says Zaini. The seven participating chiller brands are Carrier, Daikin, DB,

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Rebound effect of rebates and using EE products Study: Owners of energy-efficient air-con may turn the thermostat down or use it more to have cooler homes Consumers have to change behaviour to buffer rebound effect

More energy-efficiency products equal lower total energy consumption and more savings, right? Not necessarily so, according to a study by a US university which has cautioned authorities to consider the rebound effect as part of their campaign. The recent study from the W. P. Carey School of Business at Arizona State University explains why, even if we buy the more efficient devices, the plan won’t necessarily work. Assistant research professor Matthew Croucher, who authored the study, says: “Utility companies, energy-efficiency advocates and the Arizona Corporation Commission may be forecasting a certain amount of energy savings that won’t materialise, and homeowners may not save as much money as expected.” He points to a programme where a California utility company subsidised purchases of energysaving light bulbs for consumers. The bulbs were expected to dramatically improve overall state energy efficiency. In reality, many of the bulbs just sat in customers’ garages and the ones used were later shown to have burned out much sooner than previously estimated. The Wall Street Journal reported that regulators found the US$92 million rebate programme was a whopping 73% less effective than predicted.

Hitachi, Smartech, Trane and York. The 12 participating brands for airconditioners and refrigerators are Acson, Electrolux, Fujitsu, Haier, Hitachi, LG, Mitsubishi Electric, Panasonic, Samsung, Sharp, Toshiba and York.

In Arizona, state regulators want to reduce electricity usage by at least 22% by 2020. In the service area covered by utility company APS, air-conditioning accounts for 35.5% of all residential electricity usage and 22% of commercial and industrial usage. Therefore, incentives are being offered for customers to buy more energy-efﬁcient air-conditioners. However, Arizona may face the same uncertainty as California. “It’s like when you go to the gym every day and ‘reward’ yourself with a pint of ice cream on the way home; then you wonder why you’re not losing weight fast enough,” says Croucher, an economist at the L. William Seidman Research Institute at the W. P. Carey School of Business and a senior sustainability scientist at ASU. “Sure, a more energy-efﬁcient air-conditioner can potentially reduce your electricity usage and save you money, but not if you just use the air-conditioner more or spend the savings on other energyconsuming devices. That’s when we see something called the rebound effect,” he says. The rebound effect describes what happens when the technical

efficiency of something, such as an air-conditioner, improves, but the net result is a smaller-than-expected reduction – or even an increase – in how much the device is used. For example, people may use the money they are saving on air-conditioning to buy other energy-using items, or they may simply turn their thermostats lower to enjoy cooler temperatures because it costs the same as it previously did to maintain a warmer home. Croucher says we can, however, help buffer the rebound effect. “As consumers, we can help the situation by making real behavioural changes, not being tempted to lower the thermostat after purchasing an energy-efficient air-conditioner and not buying more energy-sapping devices,” says Croucher. “We can also utilise weatherisation techniques: improve roof and wall insulation, repair leaky air ducts, seal doors and window frames, and use screens on windows, all of which the utility companies are willing to subsidise.” Croucher also says older homes have more room for energy improvement, so they are worth focusing on. He adds that changing building codes or electricity prices can have a significant influence on energy savings in the future, too. Historically, in times when electricity cost more, builders tended to construct homes to be more energy-efficient. “Ask any economist what the simplest way is to encourage less use of a product, and most will say to raise its price,” says Croucher. “Interestingly, energy-efficiency tends to do the opposite, so we shouldn’t be surprised if savings are not as high as expected.” Source: Arizona State University    •   

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Sunrise for energy services firms Contracts to retrofit government buildings once payment mechanism worked out RM1 billion from MAESCO members to fund EPC retrofits

The sun is rising for energy services companies in Malaysia. With the Malaysian government planning to retrofit its vast facilities with more energy efficient systems – as part of it Sustainability via Energy Efficiency (SAVE) programme – the market for energy efficiency professionals looks like it may become a supplier’s market. Malaysia Association of Energy Services Companies (MAESCO) president Zulkifli Zahari and his colleagues in energy services are straining to hear the word “Go!” from the government, which incidentally also has plans for an Energy Efficiency Act in 2013. Energy services companies provide audit and consultancy on how buildings can improve their energy efficiency, but the business model that will take off is the Energy Performance Contracting (EPC) model. “Unlike traditional contracting which tends to be price-driven, the EPC company is performance-driven. It provides not just consultancy, but it also finances the proposed fittings, installs them, and does the monitoring,” says Zulkifli. The EPC company then gets its returns from the savings, the ratio of which is negotiated. It can range

from 90% (EPC): 10% (client) to 70% (EPC): 10% (client) with the contract period ranging from five to ten years. “The concept of EPC is the ESCOs are paid through savings, and they must provide a guarantee of savings,” he says. The “no-cost upfront proposition” appeals to the Malaysian government, which would find it tough to fund the retrofit of its 20,000 buildings or facilities. Its top energy users, 128 of them including hospitals, public universities and ministries, use more than RM587 million worth of electricity a year based on last year’s tariff. This realisation has caused some sense of urgency. Actually, the government has seen what energy efficient retrofits can do. It retrofitted the Ministry of Finance and the Economic Planning Unit and is seeing 10% savings. The Ministry of Energy, Green Technology and Water conducted energy audits at various government agencies and found that energyefficiency retrofits save millions. The upfront cost, however, is high. The EPC route works well for: • Clients with tight budgets • Clients with aging and inefficient buildings and equipment The win-win situation is quite

clear in the Malaysian case. The government agencies get their retrofits without massive upfront cost. They save electricity and the heads of agencies meet their energy-efficiency key performance indicators. On the other side, the ESCOs who take the financial risks practise their trade and make money. In fact, ESCOs love energy-inefficient buildings because the more inefficient they are, the bigger savings and the faster the return on investment. That said, for organisations that have the budget, the outright purchase model (client buys the equipment and pays the ESCOs a consultancy fee) is better for the client, who reaps the total savings after the pay-back period, without sharing them with the EPC company. Zulkifli says MAESCO members have collectively pledged more than RM1 billion to undertake EPC contracts. In terms of funding, banks are not as forthcoming as they might be. Some smaller MAESCO members are looking at the Green Technology Financing Scheme (GTFS) for financial support, whereby the government subsidises 2% of the bank interest rate and underwrites 60% of loan via the Credit Guarantee Corporation Malaysia. However, a GTFS certificate is no guarantee of getting a loan. Zulkifli says MAESCO is also facilitating the registration of ESCOs, together with the Public Works Department and the ministry, preparing for the government’s upcoming projects. Details being noted include ESCOs’ paid-up capital,

Energy audit reports by the Ministry of Energy, Green Technology and Water

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Buildings

President of Malaysia Association of Energy Services Companies (MAESCO), Zulkifli Zahari… the EPC is performancedriven and the EPC company is paid from electricity costs savings

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Year

Potential savings Energy-eﬃciency a year (RM) implementation costs (RM)

ROI (years)

Ministry of Health

2010

740,600

1,546,500

Ministry of Human Resources

2010

195,100

405,180

2.1

Public Services Department

2010

174,500

897,000

5.1

Ministry of Finance

2008

355,900

2,326,300

6.5

Hospital Kuala Lumpur

2008

2,538,700

8,423,700

3.3

Universiti Malaya Medical Centre

2008

4,477,000

622,500

0.1

expertise, experience and whether they intend to take up EPC. A company must register with the Ministry of Finance before it can carry out work for the government, but right now there is no category for ESCOs. That is being sorted out. Apparently, there is greater interest in MAESCO these days, as membership may now be the pathway to business. MAESCO is also collaborating with the Energy Commission to train

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energy managers. There are only 140 registered energy managers in Malaysia, in sharp contrast to the 1,500 facilities that require energy managers to assess their efﬁciency levels. These 1,500 are facilities that use more than 3 million kWh over six consecutive months. The power utility companies are obliged under the Efﬁcient Management of Electrical Energy Regulations 2008 to report them to the Energy Commission

who can then direct them to have their efﬁciency evaluated. MAESCO, representing 50-plus members, meets with the ministry regularly, even as issues such as payment mechanisms for EPC companies are being sorted out. Zulkiﬂi says EPC for government buildings cannot start until the existing payment mechanism is amended by the Ministry of Finance to allow ESCOs to be paid for electricity savings.

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Making the case for millions in savings Right diagnosis critical, not just about replacing old with new Investment is often paid oﬀ within two to three years

Case 1: Tien Wah Press, printing plant in Tampoi, Johor, Malaysia In 2002, the factory decided to change its nearly 20-year-old chiller plant. After an audit, the plant was retrofitted from 1.29 kW/ RT efficiency to 0.58 kW/ RT. With that, the company achieved a 51% improvement in energy-efficiency. Heat load from

lighting, pumps and AHU was also reduced by 32 RT as the smaller chiller meant fewer fans running and less water used. The company chose York for its chiller. Savings of RM450,000 (about US$150,000) per year was from: • Chiller plants: RM360,000 • Water: RM20,000 • Exhaust: RM10,000 • Lighting: RM60,000 The RM1.75 million investment was recouped in under four years, and Tien Wah is reaping the savings.

Case 2: Telekom building at Jalan Raja Chulan, Kuala Lumpur The 12-storey Telekom Exchange building was running on numerous air-cooled chillers with a total capacity of 800 RT. An audit discovered that the building needed only 400 RT. The chillers were replaced with watercooled ones (air-cooled chillers are cheaper than water-cooled chillers but are less efﬁcient). The system efﬁciency was improved from 1.8 kW/ RT to 0.6 kW/RT. As a result, the electricity bill was slashed by more than 60%, with savings of RM1 million a year. The York chiller system was used. The project was done on a 10-year Energy

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When it comes to cooling down a building, several elements can chalk up the costs: oversized pumps, inadequate sensors, oversized chillers and the lack of a proper control system with accurate monitoring. Energy efficiency consultant VTR Dharamarajah of E-Eye Sdn Bhd says just right-sizing chillers and pumps alone brings tremendous savings. When a chiller system is retrofitted below 0.6 kW/RT system efficiency, it’s not just energy from the chillers that gets cut down. The domino effect includes the amount of water used in the cooling system. Less heat generated from less machinery also means less cooling needed. Chillers consume the most energy in a commercial building, and using accurate tools to determine the amount of cooling needed is critical. Dharamarajah offers a few cases that he was involved in:

Telekom building behind Muzium Telekom at Jalan Raja Chulan, Kuala Lumpur: Electricity bill slashed by over 60%, saving RM1 million a year

Performance Contract. The RM2.3 million investment was recouped in three years.

Case 3: Menara TM (TM headquarters) Lembah Pantai, Kuala Lumpur The upper ﬂoors of the 60-storey building were not cold enough. To address this, more pumps were added    •   

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Grand Hyatt Singapore: Replaced old chiller plant at a cost of S$3.2 million (US$2.65 million)

Menara TM, Lembah Pantai, Kuala Lumpur: Achieved 80% energy savings for air-con pumps

Sultanah Zanariah Library, Universiti Teknologi Malaysia: Energy use cut by 58%

to bring up the chilled water. With little information on the water distribution, all the variable speed drives connected to the pumps were run at full speed. This led to a wastage of electricity, faster wear and tear for the pumps and too much water ﬂow, that warmed up the chilled water supply. With the temperature of chilled water supply being high, the dew point temperature for the coils in the system such as the air handling unit and fan coil unit will also be high. This resulted in high humidity and low comfort levels. Without proper instrumentation, the primary and secondary ﬂow in the distribution was imbalanced. The crux of the problem was the system was “short-circuited” by the

return chilled water ﬂowing through the bypass pipe connected to chilled water supply pipe. After an energy audit by TM Research & Development with the support of E-Eye Sdn Bhd, the team turned off some of the pumps and brought down the speed of others. This resulted in 80% energy savings for the air-con pumps and an improvement of comfort level at higher ﬂoors. The investment was RM800,000 for consultancy and a new monitoring and control system.

    •  

Case 4: Grand Hyatt Singapore, Singapore The hotel’s old chiller plant in 2001 was operating at a system efﬁciency of 1.05 kW/ RT and was expected to drop further in efﬁciency. The solution was

to replace the old chiller plant together with new piping and monitoring systems. The project included the supply, installation, consultancy and management of airconditioning equipment valued at S$3.2 million (US$2.65 million). Taking Singapore tax incentives into consideration, the net investment was only S$2.4 million. The plant achieved a system efﬁciency of 0.58 kW/RT after retroﬁtting. • Energy savings: 45% • Water savings: $50,000 • Total savings: S$1 million per year • Return on investment: 42% • Payback period: 2 years and 5 months (after accelerated depreciation allowance and tax incentive) Grand Hyatt Singapore chose Trane for its chiller.

Case 5: Sultanah Zanariah Library, Universiti Teknologi Malaysia The single-storey library replaced its old oversized motor and old fans and pulleys for the air handling unit. It also realigned the pulleys, and control and monitoring systems. With that, it achieved savings of: • Electricity of 318 kW (or 39%) • Lighting intensity cut by 70% from 2.7 Watt/m2 to 7.5 Watt/m2 • Energy use cut by 58%, from 169 kWh/m2 to 99 kWh/m2 • Improved comfort level • Savings of RM340,000 per year Case 6: STATSChipPAC Malaysia, Ulu Klang Free Trade Zone, Kuala Lumpur The electronic testing plant changed the air handling unit (AHU)’s highvelocity coils to low-velocity coils, and the belt fans to direct drive fans for its production area. With efﬁcient design and proper controls, the energy savings was 90%. The plant now enjoys RM350,000 savings a year on its RM900,000 investment.

Briomedia Green Sdn Bhd (924679-H) 3-3 Jalan Solaris 2, Solaris Mont Kiara, 50480 Kuala Lumpur, Malaysia • Tel: +603 6203 7681 (Malaysia • Tel: +65 9068 0184 (Singapore) • Fax: +603 6211 2681 • Email: editor@greenpurchasingasia.com • Marketing & sales Yong Wang Ching (Malaysia) +6012 205 7928, Lim Wan Tsau (Singapore) +65 9068 0184 • Subscription & circulation Yap Eng Jin

opportunities

 

Showcasing sustainable technologies By Suvarna Beesetti

Sika Kimia to double sales target in five years

Swiss specialty chemicals company Sika Group embraces the concept of sustainability, and has gone on to integrate it into its products. This effort has paid off with the company receiving its first Green Mark certification in June for SikaTop Seal-109 MY, a waterproofing sealant partially made from recycled materials. Marketing manager Pierre A Favre, an engineer by training, says that being sustainable is not just about creating green products. “There are many other facets to sustainability. For instance, the industry will continue to rely on concrete as a building material. As such, we have created additives that reduce the amount of water needed to produce concrete and to also reduce the amount of CO² that is released during the production process.” He says they also have another additive that can be mixed in during the grinding process to lower the energy needed to create cement. And these are just some of the ways the company can contribute to sustainability. The Sika Group, founded in 1910, supplies the building and construction industry. It has 90 production and marketing companies in 70 countries. Its Malaysian operation, Sika Kimia Sdn Bhd, was established in 1989. It has been involved in projects like the SMART Tunnel and the Petronas Twin Towers in Kuala Lumpur. The group has five regional technical service centres, one of which is located in Malaysia, to serve Southeast Asia. Supported by a R&D centre, Sika Kimia aims to double its eightdigit sales target in five years. About 30% of its sales come from products developed in the past five years. At IGEM 2011, Sika Kimia will     •  

showcase four application fields: • Sika Sarnafil roofing systems, a green roof PVC waterproofing membrane that is root resistant. It has been used at the Putrajaya International Convention Centre, while a similar highly reflective white membrane was installed at the DoubleTree Hilton. • Liquid waterproofing systems, that can be brushed or sprayed on roofs. • SIKA AcouBond-System, an elastic bonding system that bonds wood to its substrate such as concrete. Its elastic property absorbs the different motions of the wood, including shrinkage and expansion. • Sikafloor, a flooring system that can be used in food processing plants as it can withstand high temperature and high pressure cleaning. It is also UV resistant. “Sustainability is not just about green products; it is also about how we live, how we build a structure and how long the structure will last,” says Favre.

Favre: Wants to see more people make an eﬀort to understand what sustainability is all about

In the past, he says, a bridge’s lifespan was designed for 50 years. Now it is no less than 100 years. Thus builders need to use materials with better durability, and that may require the use of some chemicals. Instead of rejecting the use of chemicals outright, Favre says one should consider the cost savings in the long run. “We need different ways of building things and we need better quality

materials,” he says. Sika Kimia installed a reflective PVC membrane on the roof of its own plant in Nilai. “We have stringent requirements regarding our energy and water consumption because it is controlled at the regional level within the Sika Group. In the Asia Pacific, we have set a target for each country to reduce its energy and water consumption by 20% per tonne of production in the next five years,” says Favre.

AkzoNobel commits to reduce carbon footprint

AkzoNobel, the largest global paints and coatings company and a major producer of specialty chemicals, continuously introduces sustainable solutions via its eco-friendly paints. It is also upgrading its Dulux product range to meet green label standards ahead of competition. CW Goh, managing director of ICI Paints (Malaysia) Sdn Bhd, a part of the AkzoNobel group, says the company will showcase green innovations in decorative paints, industrial coatings, high performance coatings and protective coatings businesses at IGEM 2011. “AkzoNobel will also provide advice on colour trends and product consultations for industry professionals and consumers,” he says. On show will also be its new Dulux PURE, an eco-friendly paint that puriﬁes and neutralises air for interiors. The paint has the Singapore Green Label and is Sirim Eco-label certiﬁed. “For us, sustainability goes beyond being green; it means the basic level of the right to operate across economic, social and environmental boundaries. We incorporate sustainability into our value chain, from raw material supply to delivery, with programmes such as supplier audit. This is not just about checking on the quality, safety practices and environmental impact of their operations. It is also about their continued collaboration with us, not

   

Customers can get colour consultation advice from Dulux colour consultants on the most fitting colour schemes for their homes at the exhibition

ICI boss Goh Cheok Weng will also be speaking at the IGEM 2011 conference on “Breakthrough in the search of the green tipping points”

just as material or service vendors, but as sustainable partners,” he says. “For candidates who do not meet the criterion, we provide ‘best practices’ that they can assimilate into their business processes. This approach has more impact than a simple ‘pass’ or ‘fail’ after an audit.” Goh says effective promotion and public awareness are critical success factors for the development of green technology. “IGEM 2011 is deﬁnitely an avenue to fulﬁl this need. The change of the public’s mindset is important in order for the public and businesses to adopt green practices, including simple measures such as recycling leftover paints and using energy saving paints,” he says. AkzoNobel’s consumer-related efforts include its Dulux Paint

Bank education and empowerment campaign that encourages the public to deposit leftover or unused paint to be recycled. “In the building and construction industry, developers often face the challenge of green buildings being associated with higher costs. But what many are not aware of is that buildings account for a large percentage of all greenhouse gas emissions and the global energy usage and, therefore, green buildings form an integral part of the environmental sustainability,” says Goh. AkzoNobel aims to cut down total volatile organic compounds through continuous innovation and its cradleto-gate carbon footprint by 20% to 25% per ton of product by 2020.

BEWG focuses on water and waste treatment

BEWG (M) Sdn Bhd is a wholly-owned subsidiary of Beijing Enterprises Water Group Limited (BEWG), one of the largest professional companies in water supply and wastewater treatment in mainland China that provides turnkey services to the water industry. “BEWG is actively involved in various operations in China on the

application of green technology and products. As a new entity in Malaysia, we will be focusing on the water service industry by applying our knowledge and exposure in this sector,” says BEWG chief executive ofﬁcer and executive director Vence Ong Kian Min. The company has expertise in water puriﬁcation, sewage treatment, water recycling, water desalination and sludge disposal. The company also plans to organise a “Green Technology & Innovation Programme” involving a conference or a roundtable discussion among the experts, seminar and indepth case studies for the adoption of green environment technology. “We are approaching potential partners for their ideas and support. It is certainly our wish that this noble cause will materialise soon,” he says. “For this exhibition, I hope to see more participation from the private sector, government agencies, NGOs and community-based organisations, showcasing innovative and creative environmentally-friendly products, especially those related to green energy and energy conservation using natural resources such as solar, wind and water.” Ong says as much capital is involved in developing eco-products and green technology, the government should provide incentives in terms of tax exemptions and award pioneer status to institutions for the development and promotion of green products. “Indeed, we should also acknowledge industry players who have been doing their best to promote eco-products and green technology despite the challenges that they face.” He adds that the community needs to be aware of the latest green products and technology and thus, be more willing to make them part of their life.

Sika Kimia, AkzoNobel and BEWG are among companies from many parts of the world that will showcase their innovative products at the 2nd International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) in Kuala Lumpur, Malaysia, from September 7th to 10th.    •   

case studies

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CDL named BCA Green Mark Platinum Champion Growing demand for green oﬃce buildings from multinationals Most decorated Green Mark private developer to date

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By Suvarna Beesetti

H2O Residences: This 521-unit leasehold condominium, which has been awarded the BCA Green Mark Platinum and the Active, Beautiful, Clean Waters (ABC Waters) certification by the Public Utilities Board, is scheduled for completion by end 2014

At the Building Construction Authority (BCA) Awards 2011 held in May at Resorts World Sentosa, Singapore, City Developments Limited (CDL) became the ﬁrst and only recipient of the inaugural BCA Green Mark Platinum Champion Award. This award was given in recognition of its sustained efforts and outstanding achievement in environmental sustainability. To qualify for the prestigious Platinum status, developers and building owners need to have at least 15 Green Mark Platinum projects, the highest tier accorded for green buildings in Singapore. CDL’s Platinum award-winning projects include ARTE@Thomson, Parc Emily, St Regis Hotel and Residences,     •  

and The Sail@Marina Bay. In addition to this, the company also received 32 other awards, the most for any company to date, including seven Construction Excellence Awards, seven inaugural Construction Productivity Awards (including four Platinum) and one Universal Design Award at the BCA Awards 2011. CDL is the most decorated Green Mark private developer, with 50 Green Mark projects rated Gold and above, including 16 Platinum and 16 GoldPlus projects. According to the company spokesperson, CDL has set the bar even higher now, with the BCA Green Mark GoldPlus being the minimum new standard for all its new developments. Internationally, this listed international property and hotel

conglomerate is the only Singaporean company ranked amongst the Global 100 Most Sustainable Corporations. This recognition, among other accolades, has ensured its credibility as an eco-developer and champion for sustainability and green buildings in the country. For over a decade, CDL has been advocating environmental sustainability in Singapore’s built environment. It achieved this by adopting a three-pronged approach as part of its corporate green strategy: develop eco-friendly properties, manage buildings in a cost-effective and energy-efficient way, and influence stakeholders to be more environmentally-conscious. Its spokesperson says that the company’s investment in developing and managing green properties has enabled it to use natural resources more efficiently through innovation, and in the process, helped to develop the industry’s expertise and capabilities in adopting sustainable solutions for the built environment. In view of rising energy costs, CDL continuously strives to improve its energy performance across its business operations and reduce its carbon footprint as the building sector accounts for one-third of Singapore’s national electricity consumption. Back in 2009, Singapore pledged to reduce its greenhouse gas emission to 16% below 2020 business-as-usual (BAU) levels. The spokesperson says although Singapore accounts for less than 0.2% of global greenhouse gases, its key strategy to tackle carbon emissions is to push for energy efficiency in all sectors, including transport, households, industry and buildings. To this end, CDL has taken bold steps to mitigate the impact of its operations on the environment and apply environmentally-friendly practices in its business. As an early adopter of green technology, some of the company’s best practices and green features include optimised orientation of its development to minimise solar heat gains and architectural designs that maximise day lighting. The company uses various productivity enhancing systems, such

Background on CDL

as prefabrication and drywalls in its projects. It introduced energy- and water-efficient fittings, as well as facade and roof greening to mitigate urban heat effect and solar heat gain. Photovoltaic panels are integrated into some of the company’s projects such as the 7 & 9 Tampines Grande alongside the use of more eco-friendly materials such as green concrete at 11 Tampines Concourse. These features will also be incorporated into the company’s upcoming launches, which include Buckley Classique, an exclusive lowrise development comprising 64 units of condominium located near the Newton and Novena MRT stations, and The Executive Condominium at Segar, Bukit Panjang, comprising 602 units located next to the Segar LRT station. Although the green economy is generally still in its infancy and the demand for green buildings is only just growing in South-east Asia, CDL believes this will likely be the trend moving forward. In Singapore’s leasing market, for example, there is a growing demand, especially from multinationals, for green buildings when sourcing for office space. Globally, there is already increased pressure on corporations to embrace greater environmental responsibility in their business operations and to report their environmental data and efforts. As such, the spokesperson says, CDL’s position as a pioneering green developer will give it a first-mover advantage when the age of socially responsible consumerism dawns.

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CDL is a listed international property and hotel conglomerate involved in real estate development and investment, hotel ownership and management, facilities management and hospitality solutions.The company has more than 300 subsidiaries and associated companies under its wing. In Singapore, CDL has developed over 22,000 homes. It is also one of the country’s biggest landlords. CDL’s global presence is led by its diversification into the hospitality market. CDL’s London-listed subsidiary, Millennium & Copthorne Hotels plc (M&C) is one of the world’s largest hotel groups.

The management oﬃce of City Square Mall, Singapore’s first eco-mall, was awarded the BCA Green Mark GoldPlus for Oﬃce Interior at the BCA Awards 2011

Latest CDL award-winning Green Mark developments 2011 Green Mark Platinum

• • • • • •

Green Mark GoldPlus

• 9-11 Buckley • Condominium at Pasir Ris Grove – Parcel 3 • Condominium at Leonie Hill • City Square Mall management oﬃce • Plaza By The Park** • King’s Centre

Residential Residential

• City Square shophouses at Jalan Besar • City House** • Palais Renaissance** • Central Mall (Office Tower)** • CDL Office – City House levels 3, 4 & 22 • CDL Office – Republic Plaza level 36

Residential

Green Mark Gold

368 Thomson Fuji Xerox Towers** H2O Residences Hundred Trees Quayside Isle The Glyndebourne*

Residential Commercial Residential Residential Commercial Residential

Residential Green Mark for oﬃce interior Commercial Commercial

Commercial Commercial Commercial Green Mark for oﬃce interior Green Mark for oﬃce interior

*Project managed by CDL **Recertified    •   

case studies



Indian biomass innovators win acclaim Eﬀective use of farm waste creates jobs, cuts CO emissions Rice husk gasification generates power for 150,000 in rural India

Abellon CleanEnergy Ltd India has a heavily agrarian economy. With almost 43% of its land being used for agriculture, India churns out a large amount of agricultural residue. To put the discarded biomass to optimum use, produce sustainable energy and help reduce pollution at the same time, Abellon set out to develop an exemplary pellet manufacturing and bio-power generation process. Three years ago, Abellon set its eyes on Gujarat, one of India’s most industrialised states, as the potential candidate for a bio-energy-led model of sustainable energy. Gujarat, which contributes 16% of India’s total industrial production, has a plethora of factories running on conventional energy resources and the combustion of the non-renewable feedstock has driven up pollution in the state. Adding     •  

HSP trains the local villagers in gasifier technology

to this problem are farmers who clear their land for the next season and burn leftover crop waste. Of the total geographical area of 19.6 million hectares, the cropped area in Gujarat comprises 65%. The quantity of crop waste is tremendous and Abellon proposed to replace the coal and lignite used in factories with biofuel made from this waste. Today, Abellon buys crop residues from 8,500 local farmers who receive Rs500 (US$11) per tonne for waste material such as cumin stems and cotton stalks. These residues are then converted into pellets at the Abellon plant and then sold to factories in Ahmedabad and neighbouring areas. The current pellet production per year amounts to 65,000 tonnes and has created 215 jobs. By introducing this initiative, Abellon has also managed to contain 111,000 tonnes of carbon

 

Two Indian companies recently won the prestigious Ashden Awards 2011 for Sustainable Energy for innovative use of agricultural waste. Both Abellon CleanEnergy Ltd and Husk Power Systems (HSP) specialise in alternative energy sources for electrification. Abellon converts crop waste into biomass pellets and sells them to industries in Gujarat as a replacement for conventional sources of energy such as coal and lignite, while Bihar-based HSP gasifies rice husk, a major waste product from India’s rice belt, to produce electricity and make it available to rural communities at far lower tariffs than thermal power. The Ashden Awards is a UK-based initiative set up in 2001 to highlight and build awareness of inspiring sustainable energy solutions in the UK and developing world. It has since helped to develop over 100 innovative projects and its rigorous judging process makes it an internationally recognised yardstick for excellence in the field of sustainable energy.

 

By Nidhi Bhardwaj

Local villagers in Gujarat sifting cumin to separate seeds from the waste which will be used by Abellon to make biomass pellets

emission per year. Lending a helping hand to this initiative is Poornakumbha, a nongovernmental organisation (NGO) set up by Abellon. This NGO works with local university experts to educate the farmers on sustainable farming. It also oversees the collection of crop residues.

Husk power system Rural electriﬁcation is one of the biggest challenges hampering development in the state of Bihar. Here, every resource available is

 

Houses in rural Bihar are made of highly flammable materials; fires from kerosene lamps are all too frequent. HSP supplies electricity that helps replace the use of these lamps

utilised to its optimum capacity and introducing a model of sustainable energy was not easy as all the agricultural residues were reused, burned or fed to animals. Rice husk was the only exception. According to a Greenpeace study, Bihar alone

produces 1.8 billion kg of rice husk every year. But since there is no premium use for rice husk, most of it rots, emitting methane, a greenhouse gas. HPS, an off-grid electricity producer owned by four friends –

Gyanesh Pandey, Ratnesh Yadav, Manoj Sinha and Charles W. Ransler – envisioned an innovative way to produce sustainable energy by gasifying this rice husk and other biomass waste. The output: electricity for around 150,000 people living in remote areas in Bihar. HPS now runs 60 plants that produce electricity from rice husk. This has replaced kerosene as a power source and in turn cut emissions of over 8,000 tonnes of CO2 a year. This form of energy costs only Rs 100 per connection to the people, unlike the much costlier thermal power. Each power plant installed by HPS serves about 400 households and replaces some 42,000 litres of kerosene and 18,000 litres of diesel every year. The plants also provide employment for 300 people. HPS aims to have 2,000 operational power plants, connect 6,500 villages, create 7,000 jobs and save 750,000 tonnes of CO2 by the end of 2014. – THL-Mediagrove

--

Power plant draws flak World Bank to study India’s first waste-to-energy plant in Delhi Local residents and environmentalists voice toxicity concerns

By Nidhi Bhardwaj India’s ﬁrst waste-to-energy plant in Timarpur, Okhla has been a hot topic for quite a while now. While the Indian authorities view it as an environmentfriendly answer to the electricity and waste management woes of the national capital, the inhabitants near the area beg to differ. The World Bank has now expressed interest to take up the Timarpur plant as a case study and investigate the environmental and health impact. PK Tripathy, chief secretary of Delhi government, welcomed the World Bank’s interest in the plant. “Huge landﬁlls cause environmental problems and we need to convert the waste into energy which will add to the energy sector and reduce the damage to the environment. It is good as the

World Bank has identiﬁed the capital of India as a case study for converting waste into energy,” he says. This Rs 200 crore (about US$44 million) project is a private-public partnership with Jindal ITF Ecoplis and The Municipal Corporation of Delhi (MCD) as the two stakeholders. The project is spread over a 0.8 ha landﬁll in Okhla, South Delhi and was scheduled to be operational in July. The plant will produce 16 MW of electricity from 2,050 tonnes of solid waste – almost 25% of the daily waste generated in Delhi and enough energy to serve about 600,000 homes. The release of poisonous fumes through the chimneys of the incinerator plant is seen as a threat to health

and the environment. Environmentalists argue it will have an impact on people across Delhi and not just the immediate surroundings. “It is a hazard for all residents of Delhi because of the dioxins released. Incinerators should not be allowed in any locality and a biological treatment method should be adopted for waste management,” said Gopal Krishna of Toxic Alliance Watch. Not true, says Allard M Nooy, CEO of Jindal ITF Ecopolis. “The plant poses no danger to the residents and the environment. The project is registered with the United Nations Framework Convention on Climate Change (UNFCCC) to earn carbon credits,” says Nooy. The Municipal Corporation of Delhi (MCD) also disagrees, highlighting that the plant reduces landﬁll waste and produces soil-improving compost. MCD earned Rs 1 million from carbon credits generated by the plant, which is a 25% share of Rs 4 million in carbon credit revenue for reducing CO2 emission by 9,481 tonnes. – THLMediagrove    •   

case studies

--

Mining bioethanol from waste Beer waste water can produce biofuel after seven days

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concentrations of saccharifying enzymes from the malt process, no further enzymes or microbes needed to be added for the bioethanol fermentation process. The ethanol-producing yeast strains such as S. cerevisiae and C. krusie, as well as some other bacterial species, were also found in the broth. When allowed to ferment, the broth was able to produce ethanol with a concentration of 103.8g/L at 30 degrees centigrade after seven days. This technology is expected to be commercialised in 2016. The research was partially funded by a KEITI Grant supported by the Korean government.

Source: japanfs.org, asiabiomass.jp

Breakthrough technology uses cotton as feedstock

Old clothes are commonly donated to charities, and children’s clothes often go through the hand-me-down cycle. But what happens if they have outlived their life-span? A Japanese company, Japan Environment Planning Co. Ltd (JEPLAN), has developed a breakthrough technology to decompose the cellulose in cotton clothes into an enzyme, and to then convert it to ethanol.

  

Source: Frost and Sullivan

  

Generating something of value from waste is always a challenge to researchers. As a result, various liquid and gaseous waste streams have been tested for their recycling and upcycling potential. Researchers from the Kyungpook National University in Korea, for instance, have investigated the use of waste from beer fermentation broth to produce bioethanol. Their technique utilises simultaneous saccharification and fermentation, without adding saccharification enzymes or micro-organisms to the fermentation broth. They also measured the major microbial cells found in the broth, the compositions of the broth over time, as well as the residual activity of enzymes within the stock. Their findings were featured recently in the journal Enzyme and Microbial Technology in a paper titled “Potential of the waste from beer fermentation broth for bioethanol production without any additional enzyme, microbial cells and carbohydrates.” Beer has been produced since ancient times. The basic ingredients are water, malted barley, brewer’s yeast and flavouring (hops). At the end of the fermentation, the wet solid sediment from the beer dregs is discharged, treated as wastewater and eventually disposed. This wet solid sediment is made up of about 25% residue that contains yeast cells. The rest is mainly beer residue. This residue is also known as waste from beer fermentation broth, which contains high amounts of carbon, nitrogen, enzymes and yeast cells. Due to its rich nutrient content, the research team noted its potential as a feedstock for producing bioethanol. The research concluded that waste from beer fermentation broth is a cheap and suitable source for bioethanol production. As the waste from the broth also contained high



With this technology, JEPLAN is helping to reduce carbon dioxide emissions that would have come from burning the used clothes. It also offers hope for a next-generation fuel that does not compete with food, such as fuel made from corn or soybean. The company utilises its recycling technology in a factory in the city of Imabari, Ehime Prefecture, which is noted for producing towels and gauze. The ethanol produced is used as fuel for boilers in an adjacent dyeing plant and sold as “ethanol heavy fuel oil” by blending it with heavy fuel oil. The company collected 3.2 tons of used clothes under the experimental Fuku-Fuku Project in 2009. Last year, it collected as much as 50 tons. It aims to raise this target to 150,000 tons per year, with help from business partners. Each litre of ethanol now costs 200 yen (US$2.45) to produce using this technology. For it to be commercially viable, the sale price must be 100 yen (about US$1.22) or less under current conditions. Japan discards about two million ton of used textile products every year. This is made up of 1.44 million tons of used clothes and 0.56 million ton of used bedding and interior decoration textiles. The recycling percentage of used clothes remains as low as 19%.

Top: Clothes dumped into a machine for processing Below: Ethanol, the end product

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case studies



Fashioning a greener Mekong Delta Eco-friendly projects help alleviate poverty in Vietnam and Cambodia Sustainable skills training provides secure jobs for local moms

By Siaw Mei Li

As developing countries adopt the trend of two-income households, a woman’s right to work outside the home is increasingly championed while the notion of a stay-at-home mom often implies some loss of income for her household. In southern Vietnam and Cambodia, however, a dynamic non-proﬁt organisation Mekong Plus is turning such assumptions on their head. By training local women to make quality handicraft and encouraging them to work from home, this community development programme provides women with sustainable employment as well as the freedom to remain close to their children throughout the day. Mekong Plus’ approach also allows participants

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Quilting is relatively simple to learn, with a low capital expense and a strong labour-intensive focus. Mekong Creations’ quilting activities began in Vietnam ten years ago, where the first quilts were sold Tupperware style in people’s homes.

to strengthen community bonds by working daily with fellow womenfolk who are their natural local support network. Before long, this combination of a steady income and the mother’s continued ability to look after her children and other household dependants translates into an improved standard of living for the entire family. In a testimonial on the Mekong Plus website, Nguyen Thi Quy Hiep, who works in the organisation’s bamboo workshop in Vietnam, relates how she and her husband used to struggle to earn enough for themselves and their four children: “We live in Duc Thuan. We have 2,000 square metres for paddy; this is not enough, of course. We wanted to raise pigs but did not have the capital. So I worked at the cashew nut workshop and earned about 13 euros (US$18.50) per month. We also took care of the ducks for a farmer; this added another 30 euros. Yet all this could not make ends meet.” That was before she joined the bamboo workshop. When she started there, she began by earning 36 euros per month, but now she makes a comfortable 54 euros monthly. There are other beneﬁts as well. “We receive training and microloans. Our total income has now trebled,” says Nguyen, adding: “Last year my husband replaced our hut with a house in concrete [with an area of] 55 square metres, but it is not ﬁnished yet.”

Despite its pretty purple blossoms, the water hyacinth is a pest. Among the fastest-growing plants, it can grow up to a metre above water surface, overwhelming ponds and waterways. By blocking out sunlight and crowding out other plants, it gradually depletes oxygen in the water, killing fish and other aquatic life. In the Mekong Delta, uncontrolled water hyacinth colonies cover the waterways, interfere with water flow and waterway access, and create a prime habitat for mosquitoes. This pest is a boon, however, for artisans in Mekong Creations’ Hua Giang province workshop. Here, local women have received government-funded training on how to weave the spongy stem of the plant into products such as baskets, bags, coasters

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and ornamental boxes. As water hyacinth dries, it changes from green to tan. The Mekong Creations website’s description of the resulting material is almost romantic, noting that it is known for its “soft feel and distinctive smell, reminiscent of leather and fine tobacco.” The craft products woven from dried water hyacinth stems find ready customers not only among tourists, but also in an expanding international export market. Belgian luxury leather company Delvaux, which has set up a factory in Vietnam, is doing its part to support the local community by sharing know-how and hand-stitching expertise on a range of beautiful bags that combine water hyacinth and leather.

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From eco-pest to premium product

As artisans weave with water hyacinth strips, they push air out of the stem, making popping sounds as they work

The Mekong Plus programmes involve about 500 villages, 40 of which are in Cambodia, and benefit around 170,000 direct recipients, including children in schools programmes; women handicraft workers; and very poor families. More details are available at www.mekongplus.org

In Rumdoul, Cambodia, beautiful rag rugs of various designs, sizes and workmanship levels are made by weaving discarded cotton scraps onto a background of hessian

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Mekong Plus was founded in Vietnam in 1996. The core group of social entrepreneurs who started this programme comprised Vietnamese and Belgian nationals. Today, the executive committee members of Mekong Plus are Bernard Kervyn, Le Thi Yen Hang, Nguyen Van Than and Tai Dai Thanh. The organisation continues to have a strong community of volunteers and supporters in Belgium and in France, which organises cultural and sports events, movie screenings and discussions to raise awareness and funds for the teams working in Vietnam and Cambodia. The local teams have 150 local workers, of whom 50 are full-timers, and one is an expatriate staff. One person who fell in love with the organisation not long ago is Madeleine Denis. Denis is of Vietnamese origin, but had lived 40 years in France and spent 18 of them working for the international fashion house Chanel. She started off by volunteering at Mekong Quilts during visits to her home country and soon became such an asset to the community that they did not want her to leave, and she was offered the

challenge to set up Mekong Creations. “After a few weeks on the project, I want to say I am not the least disappointed with Mekong Plus. I can now say, from the inside, it does exactly what it claims to do,” Denis said in her testimony on Mekong Plus website. Today, her creativity and professional experience from the

fashion industry is paying off. Mekong Creations, which has stores in Ha Noi, Ho Chi Minh City, Siem Reap and Phnom Penh, continues to see its business grow through specially commissioned items for luxury French label Terre D’oc, as well as through other products intended for the local and tourist markets.

2nd Annual

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s A Optimising Green Water & Waste Management for Sustainable Future GTOWER HOTEL, KUALA LUMPUR - SEPTEMBER 26 & 27, 2011 http://www.comfori.com/greentech For more information, contact Huey Ying at hueyying.leong@comfori.com or (603) 5621 3630 *Green Purchasing Asia subscribers are eligible for 5% discount on conference fees.    •   

case studies

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Chinese local governments bank on the sunny side

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that provide good GDP, no pollution, increase tax income and provide jobs. Thin-film solar is considered one of the industries promoted by the whole country. To attract investment, they provide different incentives, including Anwell Technologies lands 1.2 billion yuan funding for two plants cash grants, interest-free loans and tax incentives,” he says. Chinese municipal governments jostling for clean projects with incentives “Providing so much funding to a By Ann Teoh private company is rare. The reasons are that both governments are convinced we have the technoloAnwell Technologies Ltd gies and global sales network (Anwell) has secured two sets to support the growth. And we of long-term funding totalling are the only company in China an impressive 1.2 billion yuan to make our own equipment – (US$185 million) from two that keeps us competitive in the Chinese municipal governments long run. Our competitors buy – comprising 700 million yuan the production equipment from to ramp up its existing solar their suppliers.” thin-film production at An Yang, Wu adds: “We also have and 500 million yuan to build a good track record on doing another plant in Dongguan. R&D with the government’s Anwell chief financial support – we have completed officer Ken Wu admits such a research and development massive funding is rare for project for the Guangdong Henan plant at An Yang City that received 700 million yuan private enterprises although the Anwell’s government on organic light from the municipal government Chinese government supports emitting diode or OLED techmany state-owned enterprises. “We nologies. In that project, we received Background on Anwell discussed with the two cities sepaover 300 million yuan in grants in 2009 rately – both want us to invest in their and 2010.” • Listed in Singapore Exchange since cities,” he says. While Anwell has a short history 2004, but headquartered in Hongkong. The funding will cover most of in solar, only since 2008, it has had a • In 2010, Anwell secured an order of what Anwell needs for capital expendifactory in China for 11 years, he says. 180 MW worth of solar panels with a value of US$300 million, to be ture, with the balance coming from “The governments look at our track delivered over three years. banks and investors, he tells Green Purrecord in optical disc and OLED as • Its solar modules have been exported chasing Asia. And that’s not all. Anwell well,” he says. since the fourth quarter of 2010 to is in talks with the Dongguan governAnwell executive chairman and Australia and Europe for rooftop ment for more funding support. chief executive officer Franky Fan installations. It wants to expand to India and America. Anwell first announced on June says: “With these long-term funding in • Anwell ventured into the solar 20th that its subsidiary, Henan Sungen place, we are able to strongly ramp up business in 2008 by applying Solar Fab Co Ltd, had secured 700 our production capacity in response to its proprietary technologies in million yuan in funding from the An the growing global demand for thindeveloping manufacturing equipment Yang municipal government “to ramp film solar panels.” for optical media and OLED. Source: www.nextinsight.com up production” at its first amorphous Anwell’s revenue for 2010 silicon thin-film solar plant at An Yang exceeded HK$1 billion (US$128.5 City in the Henan Province. Of the million), which is an increase of 27% cluding tandem junction and advanced sum, 200 million yuan is cash, and the year-on-year, for the first time, with the multi-junction thin-film solar panels. remainder is government-backed guar- According to Wu in an earlier interview solar business contributing HK$246.9 antee. The thin-film panel plant started million. However, it still recorded a net with NextInsight, the Dongguan plant production in March 2010. loss of HK$416.9 million, which was would cater to local demand as China On June 22nd, it announced that attributed to its solar business startfurther incentivises the use of renewanother subsidiary, Dongguan Sungen able energy. up costs, higher depreciation charges Ltd, had secured long-term funding of and higher administration and R&D Anwell aims to achieve 1.5 GW 500 million yuan from the Dongguan expenses. annual production capacity in five municipal government for a new thinIt wants 50% of its revenue years with continuing support from the film solar panel manufacturing plant. (more than double the previous rate of Chinese government, up from the curWith production scheduled to start 23.4%) to come from its solar busirent 40 MW. next year, this plant will produce Anness in 2011 and intends to spin off the “The municipal governments well’s latest proprietary products, insolar business in an IPO in 2013. are fighting for good projects – those     •  

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case studies

Tidal power uses turbines to harness the energy contained in the flow of ocean tides

Gujarat rises on the tide of marine power Construction on 50 MW project starts 2012, to complete by 2013 Plant will be India’s and Asia’s first commercial tidal energy plant

Asia’s ﬁrst tidal power plant is taking shape in the Gulf of Kutch in the state of Gujarat as part of India’s long-term policy to employ all renewable energy sources to generate power. India is surrounded by sea on three sides and its potential to generate tidal energy is immense. And Gujarat, which has one of the longest coastlines in the country, offers the perfect site for a tidal project. Two of the most ideal locations are the Gulf of Cambay and the Gulf of Kutch (both in Gujarat), which have the potential to produce over 8,000 MW of tidal power. The Ganges Delta in the Sunderbans in West Bengal is also a good location for small-scale tidal power development with an estimated capacity of around 100 MW, according to Minister of New and Renewable

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By Tejas Patel

Gujarat Chief Minister Narendra Modi has authored a book titled Convenient Action: Gujarat’s Response to Challenges of Climate Change

Energy Farooq Abdullah. The proposed 50 MW maiden tidal project will be installed by UKbased Atlantis Resources Corporation in partnership with Gujarat Power Corporation Limited. The British company is a vertically-integrated marine renewable power company providing marine turbines, project origination,

resource assessment, and project installation and completion management as well as operations and maintenance services to utilities and power companies worldwide. Construction starts early next year and will be completed by 2013. “Once operational, the plant is likely to be scaled up to a capacity of 250 MW at a cost of about US$165 million,” Atlantis Resources says in a press release. “The project will require hundreds of millions of dollars of investment in tidal turbines, associated power export infrastructure and the development of a local supply chain and will lead to the creation of hundreds of jobs in the region,” the company adds. “This is not only exciting for Gujarat and India; it is a landmark project for Asia.” The state’s Chief Minister Narendra Modi has, through this project, once again demonstrated his commitment to using clean and renewable sources of energy generation as an economic stimulus. In the past few years, Gujarat has been India’s leading state in implementing renewable energy projects. Modi has publicly stated his vision to make the state a world leader in renewable energy. “Gujarat has significant resource in the waters off its coast, so tidal energy represents a huge opportunity for us. This project will be India’s and indeed Asia’s first at commercial scale and will deliver important economic and environmental benefits for the region, as well as paving the way for similar developments within Gujarat,” says DJ Pandian, chairman and managing director of Gujarat Power Corporation. Tidal power contributes only a small fraction to global power generation compared to other renewable sources of energy. But according to Atlantis Resources CEO Tim Cornelius, it has immense potential for the future considering that around 15% of the world’s power demands can be met by tidal power. A large number of tidal power plants are already coming up around the world. Atlantis is one of the leading companies in the tidal power sector. Last year, it entered into an agreement to provide turbines for the largest planned tidal power plant of 378 MW capacity in northern Scotland.    •   

case studies

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Eco-city for Mumbai-Delhi industrial corridor India, Japan sign MoU to develop sustainable smart city Project to be part of 1,483 km corridor worth US$90 billion

By Nidhi Bhardwaj

India is gearing to ﬂag off its ﬁrst eco-city initiative in Manesar, Gurgaon some 50 kilometres outside of New Delhi, according to an announcement by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) recently. The eco-city pilot project was conceived during Indian Prime Minister Manmohan Singh’s visit to Japan to discuss the Delhi-Mumbai Industrial Corridor (DMIC) initiative, a mega infrastructure project worth US$90 billion whose region of

influence includes the states of Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh. The DMIC project will receive financial and technical aid from Japan and cover 1,483 kilometres between Delhi and Mumbai. Within that will be India’s first true eco-city, with 51,000 hectares reserved for green spaces, conserved mangroves, integrated villages, a compact city to minimise travel distances, and rail transport for local and regional transportation. An MoU to set up the eco-city in the industrial hub of Haryana has

been inked between HSIIDC, the Delhi-Mumbai Corridor Initiative Development Corporation (DMICDC) and a consortium of Japanese companies led by Toshiba including NEC, Tokyo Gas, Energy Advanced Companies Ltd and others. A feasibility report submitted by Toshiba to HSIIDC covered areas such as water, water recycling, power, logistics, solid waste management and transportation. The report was funded by Japan’s Ministry of Economic Trade and Investment. According to Rajeev Arora, managing Director of HSIIDC, the corporation will study the report in detail prior to rolling out an implementation plan in collaboration with its Japanese partners. An eco-city strives for the smallest possible ecological footprint by efﬁciently utilising land and renewable sources of energy. Japan has successfully implemented this concept as far back as the 1970s in the once-polluted industrial city of Kitakyushu.

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Working for positive change that lasts

How has the RSB roll-out been going so far? We’ve had two formal ones: one in Europe at the World Biofuels Market Conference in March and then the second here for the Asian market. In Europe, we had immediate interest. The EU passed two important regulations independently of the RSB, [under the EU Renewable Energy Directive, a 20% target was set for the use of energy from renewable sources by 2020 and a regulation was passed offering incentives for biofuels that meet a set of sustainability criteria] but we’re going to benefit from that because many producers who want to sell into the European market need to prove that they meet the EU criteria, and RSB certification will provide that proof. What we were more interested in certifying were expansion plans for biofuels in many parts of the world, so we see a potential in the US, Canada, Brazil, and many parts of Latin America where there isn’t a particular biofuel sustainability requirement. The NGOs in those countries want there to be one. They don’t see a prospective law, so this voluntary system would be a way to fill that gap. Here in Malaysia several companies have been talking to us but most are waiting to see if there’s going to be a defined market for RSBcertified material. We’re just a few weeks behind in preparing a case on an actual certified operator – that’s what many producers are waiting to see and of course, they’re right to do that. You mentioned that you fielded some good questions at the RSB roll-out here in Kuala Lumpur. Tell us about some of them. The main question is always “Why should we do this?” from producers. Always. It’s fair. And our answer is, “Your markets are going to want this     •  

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The Roundtable for Sustainable Biofuels (RSB) services roll-out programme for Asia-Pacific brought Barbara Bramble, chair of the RSB steering board and international sustainability advocate, to Kuala Lumpur in early July. Amidst a packed schedule, she met with Siaw Mei Li and talked about why the RSB is possibly one of her most concrete achievements to date.

“People think there’s a conflict between growing food and fuel products. So what we offer is a way out of the criticism, to prove that it’s not a problem.” kind of certification at some point, either earlier or later, and we’re going to provide a good way to answer criticism.” Biofuels everywhere are subject to criticism. People think there’s a conflict between growing food and fuel products. So what we offer is a way out of the criticism, to prove that it’s not a problem. What are the major ways in which biofuel production could adversely affect the environment in Asia? The standards are the same all over

the world and for all biofuel crops, so they all need to meet standards of not causing deforestation, air pollution or water shortages. We require thirdparty independent auditors to check on labour conditions, the treatment of women, treatment of land and air pollution problems and how much water they use. Plantations must prove through water quality and quantity analyses that they’re not messing [the area’s water/water supply] up. People in other parts of the world worry about deforestation but Malaysia is probably not in that situation

anymore because the plantations are long established and have no association with new deforestation. We have a strict cut-off date of January 2009 – no deforestation after that period. If it’s an expanded or new operation, then they’ll have to prove that they didn’t cause loss of biological diversity and a large emission of greenhouse gases. The land rights of native peoples principle requires that any active dispute over land be resolved with free, prior and informed consent of the local people. What led you to your current work with the RSB? My work with the RSB really began way before it existed. I was studying the question of biofuel expansion, the expectation of countries that were passing mandates requiring more biofuels, and what could be the consequences for land if all those mandates were met. I also organised some local consultations with civil society groups in Brazil and South Africa, who told us what they were worried about and I realised that there are ways to avoid [the potential problems] if the new expansion is directed to areas that need agricultural improvement. At the end of 2006, the UN Foundation and the German NGO forum for environment and development had a conference on sustainability and biofuels; so I brought the results of consultations from Johannesburg and Sao Paulo and we had a very good discussion. At the end of it, the whole conference said, “We need to have standards for this.” Soon after that, we invited a group to be the kick-off board, and that’s how it all started. Recently-retired directorgeneral of WWF Claude Martin was the chair for the ﬁrst two years, then he wanted to really retire and so I was elected the chair of the board. Tell us about some of the challenges you face in this role. Negotiation is hard. On purpose we have seven chambers: the feedstock producers; the fuel producers; the end-users and ﬁnancial institutions; labour unions; human rights groups; environmental groups; and experts,

university professors, and UN and some government agencies – the last chamber doesn’t have a vote but they are advisory. So we have three against three: we don’t want to have a ﬁght to vote because that means lack of consensus. We try to get all of our decisions by consensus… which is why it’s taken three to four years to get • Has worked extensively on climate change policy, tropical deforestation concerns and economic empowerment for girls and women • Is senior programme advisor for international aﬀairs at the US National Wildlife Federation and a member of the board of directors for the Forest Stewardship Council • Enjoys hiking, gardening (“I’ve taken over the landscaping for my condo”), and travel • Her favourite websites are – Mongabay (“A journal and a terrific compilation of stories to do with forests”), – ForestJustice.org (“Our NWF special website to do with forest issues and the people they involve”) and – Greenwire.com • Speaks Spanish and Portuguese

the standard and now to agree on the mechanism for the certiﬁcation. We still have two issues left to decide: how a voluntary certiﬁcation system can properly account for indirect land use change, and how we will allocate greenhouse gases for products that come as co-products, waste/residue products, and end-oflife products that are not the original reason for the crop. You’ve been involved in work for sustainable development in many developing countries. Give us an example of how this impacts gender equality and the ability of women to control key decisions affecting their lives and those of their families. One of the most shocking statistics I ever came across was that when the Grameen Bank studied the results of microloans in Bangladesh, they found you could tell the difference between the kids of Grameen Bank borrowers and those who were not, and not

because they could read or something – it’s because they were bigger. They were getting more food because the women who have resources are putting it into feeding their kids. The families that don’t have women controlling the resources have smaller children. You don’t wait around for the government to grant legal rights [to women] because even a tiny loan can make a difference so that she’s seen as being equal to a man. What’s your favourite success story, or what keeps you going? It’s funny, I just began to think about that recently. I’ve spent many years working for policy change, legal change, financial role change… There’s been ebbs and flows [in terms of the lasting tangible impact of work with various NGOs and the World Bank across the years]. I feel like you get two steps forward, one step back, and I found that the one thing in all these years that I’ve helped to create that’s a “real-life” thing… is the RSB. It’s got real roles, it’s got a certification system… as soon as we get a real-life certificate, which I think will be very soon, I will feel like that’s maybe the most concrete thing that I’ve ever been able to do. Where’s home for you? I’m based in DC but I spent many years away because my parents were in the foreign service, so I’ve travelled since I was very young and had some language opportunities most Americans don’t have. I was blessed by this wonderful childhood and came back to Washington after I’d finished university. I’ve been there ever since. What do you read when you don’t have to read reports? Nothing anymore! I used to read novels. I’m actually reading a book about the political history of Nepal because I was just there but that is the first non-work book I have read in a year – it’s really embarrassing. I do read a lot of newspapers and journals and reports and, boy, that’s enough.

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Blueprints for a green future Outspoken Malaysian architect and entrepreneur David Mizan Hashim embraced “environment” as one of five core values in his company Veritas more than two decades ago. Apart from design, he endeavours to educate his clients to see the value of spending more on green features now to reap rewards later. He talks to Ngam Su May on the importance of a culture of environmental consciousness so that cities can become sustainable.

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• CEO and founder of Veritas Design Group, an awardwinning Kuala Lumpurbased architectural and interior design firm • Holds a Master in Architecture from Harvard University’s Graduate School of Design • Corporate member of Malaysian Institute of Architects and Malaysian Institute of Interior Design • Ex-national squash player, but now loves skiing and scuba-diving

“It is very easy to just give the client what he wants. But it takes time and patience to explain to the client; to do the right thing” Also channelled to the fund are electricity bill savings from energy conservation efforts and the sale of recyclable items like paper, plastic bottles and aluminium cans from the ofﬁce. The money is distributed to employees who use public transport, as a form of beneﬁt for contributing less to carbon emission. David believes that when it comes to caring for the environment, one should walk the talk. He says environmental consciousness must become a core culture, whether at company or city level, for it to translate into reality. He said architects can slowly but surely inculcate the green culture among their clients. “Any project has opportunities to be sustainable. It is a question of how much effort the consultant (architect) is willing to make to educate the client. It is very easy to

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David Mizan Hashim has just passed 50, but could pass for a 40-year-old. This is probably due to his avid love for sports. A former Malaysian national squash player, the affable architect now loves nothing better than to indulge in his passion for skiing and scuba-diving in exotic places around the globe. After finishing his studies in architecture, David founded the Veritas Design Group in 1987, growing it into one of South-east Asia’s leading design firms. The group has designed numerous buildings for local and international clients, some of which have been green rated. Among them are the Digi Telecommunications corporate headquarters in Subang, One Sentral and Binjai office towers in Kuala Lumpur, and the Ministry of Natural Resources and Environment office in Putrajaya. The group has offices in Australia, the UAE and Vietnam, and in its 24 years of existence, it has garnered many awards such as the World Architecture Awards 2001 – Top 5 in Asia, Building & Construction Interchange Asia (BCIA), Top Ten Architects in Malaysia Award 2007 and Malaysian Institute of Architects (PAM) Architectural Steel Awards 2007. Environmental consciousness is one of five core values at Veritas, something David had incorporated into the company culture way back. “Buildings designed by us had environmentfriendly features as far back as 20 years ago,” he says. Currently, the group offers green building consultancy services under its subsidiary, Veritas Environmental Sdn Bhd. Internally, the group practises what it preaches. Senior company executives who drive to work with high-powered cars pay a sort of “carbon tax” that is tied to engine capacity. David’s penchant for a BMW 7 series costs him RM500 per month. The money goes to a company fund.

just give the client what he wants. But it takes time and patience to explain to the client; to do the right thing,” he says. He acknowledges that going green does cost more – at least 5% more – especially if emphasis is placed on active energy-saving features, but the challenge lies in convincing project owners to see the beneﬁt of paying more now in exchange for long-term savings in operations and energyusage. Looking at Asia, David is of the view that the culture of constructing good buildings characterised by low energy usage and low carbon emission has yet to take a strong hold among developers. Conventional buildings, together with coal-ﬁred power plants and petrol-powered cars, continue to be energy guzzlers. This partly explains why few cities can call

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themselves low-carbon. By definition, a low-carbon city uses little energy derived from fossil fuels. Instead, the focus is on tapping renewable energy sources such as solar, wind, geothermal and biomass. David says the current benchmark is Curitiba in Brazil, one of the most low-carbon and sustainable cities in the world. “The whole culture of the city is geared towards environmental consciousness,” he explains. This is an old city which its mayor and town planners have redeveloped to be sustainable in terms of green spaces, waste recycling and public transportation. It is famous for its highly-efficient bus rapid transit (BRT) system which carries around 70% of Curitiba’s commuters to work, resulting in congestion-free streets and pollution-free air for 2.2 million inhabitants. The city has a 70% recycling rate, said to be the highest in the world. In addition, city planners have built large and beautiful parks rather than concrete canals to control floods, giving Curitiba one of the highest public park acreage per inhabitant in the world. Another example is Masdar City in Abu Dhabi, UAE, that is aspiring to be “the world’s first carbon-neutral city”. Work is still in progress and it remains to be seen whether it can live up to this label, says David. According to the city’s website, the 6 sq km Masdar City is an emerging global clean-technology cluster that will integrate the full range of renewable energies. Situated 17 km from downtown Abu Dhabi, Masdar City will be a high-density, pedestrian-friendly development, housing 40,000 residents and hundreds of businesses. The source of green innovation, technologies, R&D and human capital will be the Masdar Institute, developed in co-operation with the Massachusetts Institute of Technology. Other major partners of the Masdar Institute include Siemens, which will establish its Middle East headquarters and Centre of Excellence in Building Technologies R&D centre at Masdar City; GE, which will build its first ecomagination centre; Schneider, which will operate an R&D centre; BASF; the Swiss Village Association; the Korea Technopark Association

In Curitiba, Brazil, parks and gardens were constructed along rivers to help protect the city from floods

“Environmental consciousness must become a core culture, whether at company or city level, for it to translate into reality” and the International Energy Agency. How does Kuala Lumpur fare in carbon footprint? David believes the city is moving to a low-energy paradigm, following recent government initiatives such as pedestrian walkways that link commercial and retail buildings in the city centre and the upcoming Mass Rapid Transit (MRT) project. The launch of the GBI Township Rating Tool in March was another positive step to encourage developers to build eco-friendly residential estates and townships. But he thinks there is still a long way to go for city dwellers to transform “the way we live, work, shop and play” to an energy-efﬁcient mode. What needs to be done? “We start with the schools. Education. Kids need to understand the (green) principles and bring them back to their parents,” David says, based on the premise that children can more easily capture the attention of pre-occupied adults. The government and local councils have

to draw up proper policies, laws and regulations and enforce them strictly. The added challenges currently are subsidised electricity tariffs for consumers and lopsided agreements in favour of independent power producers. Much can be achieved by private initiatives, David says. For instance, he says, building owners can invest in energy-saving features like doubleglazed windows, energy-efﬁcient air-conditioners and low-energy light bulbs. House owners can retroﬁt their houses, using solar photovoltaic panels to power electrical products. David Mizan Hashim is one of the panel speakers on “Sustainable Urban Development: Expanding Low Carbon Cities” at the 2nd International Greentech and Eco Products Exhibition and Conference (IGEM 2011) to be held in Kuala Lumpur, Malaysia, from September 7th to 10th. • Visit igem.com.my for details of the speakers.    •   

people

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The future of energy and mobility Growing populations and rising aﬄuence mean that global energy demand could double by 2050. As car ownership grows and mobility increases, demand for transport fuel expands in tandem. Royal Dutch Shell chief executive Peter Voser told participants of a future energy conference in Kuala Lumpur that the world will need to draw on a range of diﬀerent energy sources to meet this demand, including natural gas and biofuels.

    •  

• Born in 1958. Married to Daniela and they have three children • Appointed Royal Dutch Shell CEO on July 1st, 2009 • CFO and executive director of Shell from 2004 to July 2009 • CFO and executive committee member of ABB Group from March 2002 to September 2004 • Director of Catalyst, an NGO working to build inclusive environments and expand opportunities for women at work

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The future energy challenge arises from several powerful forces now at play. Every second, ﬁve new babies are born, many of them here in Asia. The result is the world’s population is expected to grow from 6.8 billion today to more than nine billion people by 2050. This is like adding another China and another India to the world. These people will need food, water and energy. In addition, hundreds of millions more will emerge from energy poverty in the coming years, buying their ﬁrst refrigerator, computer or car. What will all this mean for overall energy use? Global energy demand is expected to double by mid-century from its level in 2000. But it could rise even more, perhaps tripling, if we continue using energy as we do today. By 2050, this could leave a gap between supply and demand about equal the size of the energy industry’s entire output in 2000. We will have to close this gap. It could either be by an enormous ramping up of energy supplies, or a dramatic curbing of demand, or a mix of both. Exactly how this will be done is uncertain. Our scenario planners call this a “zone of uncertainty”. The decisions we make around energy use will determine whether we face a period of extraordinary opportunity for policymakers, businesses and society at large; or a period of extraordinary misery, as price shocks and knee-jerk policy reactions impact our ability to produce and consume energy smartly. Whatever the case, we are entering an era of major transitions, some of which could be volatile. One such transition will be the shifting of energy demand from West to East, from the developed to the developing world in general, but to Asia in particular.

option. Compressed natural gas (CNG) is sold as passenger vehicle fuel, while liqueﬁed natural gas (LNG) is an alternative fuel for heavy trucking and shipping. Gas-to-liquid fuels can help reduce pollution in the many rapidly growing cities around the world. It has also been tested as a fuel for airplanes. Hydrogen holds huge promise, but the technical and commercial hurdles are equally huge. Delivery on that promise seems always just around the corner.

Peter Voser: Biofuels are the only low-carbon transport fuel that can be scaled up fast enough to tackle carbon emissions from transport in the next 20 years

Fuel options Meeting the fuel demand will call for a “hybrid” of fuel options – biofuels, hydrogen, natural gas, electricity, along with petrol and diesel. Biofuels are the only low-carbon transport fuel that can be scaled up fast enough to tackle carbon emissions from transport in the next 20 years. In June, we ﬁnalised our joint venture with Cosan, Brazil’s largest producer of ethanol, to form Raízen. It is our ﬁrst involvement producing biofuels on a large scale. From cultivation to use, Brazilian sugar cane ethanol produces around 70% less CO² than conventional fuels. We are also working on developing the next generation of biofuels from agricultural waste products, such as straw. It will take some time for these products to become commercially viable. Natural gas is another transport

Electric mobility offers attractive possibilities for reducing transport emissions. Several countries in Asia, including China, Japan and Singapore, are at the vanguard of developing and testing electric vehicles (EVs). But we need to ask where the electricity comes from. If it comes from burning coal, the hoped-for beneﬁts of lower CO² emissions will not be fully realised. Some of the countries which are driving hardest on introducing EVs are also those that have moved quickly towards adopting alternative energy sources – Denmark using wind, Israel using solar and France with nuclear power. But perhaps a more direct route for Asia to take in making EVs more acceptable environmentally would be to use more natural gas, in existing and new power plants. The debate over the best source of energy to meet Asia’s growing electricity demand has intensiﬁed following the nuclear accident in Fukushima. It is still too early to draw any conclusions about the long-term impact of the events in Japan on global energy supply. Rather than speculate on this, we are all likely to agree on the need to diversify our energy resources. Our scenario planners believe by the middle of this century, about 30%

Meeting the future energy challenge To meet the future energy challenge, heavy investment in production will be needed. The IEA estimates the world will need to invest US$1 trillion every year for the next 20 years in new energy projects. Failing to do so will mean greater price volatility in energy markets in the developed world, while consigning millions to energy poverty in the developing world. At Shell, the three pillars of our future energy strategy can be summed up simply as: More energy, cleaner energy and smarter energy. • More energy: We are investing US$100 billion from 2011 to 2014 to develop new sources of oil and gas. Last year, we invested more than US$1 billion in technology research and development, to enhance oil recovery from our production sites, as well as to enable us to go into deeper and more challenging locations to deliver more energy. • Cleaner energy: We are producing more natural gas. By 2012, more than half of our production will be natural gas. • Smarter energy: We offer products and services to help consumers “get the most out of every drop” of energy. These include fuels, lubricants, detergents, and road laying bitumen products.

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of the world’s energy demand could be met from renewable resources such as wind, solar and biomass. That is less than some people want. But even getting to 30% will take a huge global effort to achieve. It also means that, even in 2050, 70% of the energy mix will still come from conventional resources: nuclear, coal, oil and gas. So, in the short and medium term, the only substitutes for nuclear power are coal and gas. Many countries are opting for coal to generate electricity, because it is available locally, or because they believe its costs are lower. But in our view, natural gas is a better option. Natural gas-fired power plants produce 50% to 70% less carbon emission than coal-fired plants. Natural gas plants can be built faster and at lower cost, and they are easy to switch on and off, so they can compensate the fluctuations in electricity from wind and solar power.

Checking gas detectors at a Shell plant in Changbei, China

US$ 300

bil

This is how much governments the world over spent on fuel subsidies in 2009

Beyond smarter fuels and usage, we are also going to have to get a lot smarter about how we plan and build our cities. Today, over half of the world’s population lives in cities. By 2050, this could rise to three-quarters. According to the United Nations Habitat group, this would require the development of a new city of 1 million people every week for the next 30 years. Many of these cities will be built here in Asia. How they are planned and built will make a critical difference, since about 80% of CO² emissions are produced in cities. Smaller, more compact cities use energy more efﬁciently than sprawling low-rise ones. Making greater use of public transport, and integrating it better with other facilities, can make a big difference to energy demand. Similarly, large government subsidies to keep energy prices low can shape the way consumers behave.

The IEA says governments spent the equivalent of more than US$300 billion on fuel subsidies in 2009. Removing these subsidies completely by 2020 would save enough energy to meet the needs of Japan, Korea and New Zealand. Lower subsidies lead to greater efﬁciency, and savings.

How to make it happen Major policy decisions can shape how communities and companies respond. Government policies should encourage cost-effective ways of meeting higher demand, while lowering environmental impacts. China, for example, plans to nearly double the share of natural gas in the country’s energy mix in the next few years. That’s a very powerful driver. Stable and certain tax regimes that provide industry with incentives to invest, matching its long-term investment cycle, will also help. Long-term, thriving partnerships between national oil companies and international oil companies will be critical. Putting an appropriate price on carbon will make a big difference. Our preference is for some form of carbon markets for CO² pricing. Market approaches which give companies an incentive to ﬁnd the most cost-effective solutions work better than governments trying to second-guess business decisions.    •   

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Holidaying without the carbon baggage Carbon emissions from tourism will grow by 162% from 2005 – 2035 Create demand for less carbon intensive journeys through tour package designs

Khoo Hock Aun is vicechairman of the Roundtable on Sustainable Biofuels. His email is khoohockaun@ cosmobiofuels.com

The global tourism industry is a significant contributor to climate change. Travel and tourism, excluding aviation, is responsible for about 3% of greenhouse gas (GHG) emissions. Aviation contributes 2% of man-made CO² emissions. Together, the sector’s current contribution is an estimated 5% of CO² emissions, and a much higher share of the radiative forcing caused by all GHGs. Of the total CO² emissions generated by tourism, transportation is responsible for around 75% (with aviation accounting for some 40%). Without tackling aviation, tourism’s impact on climate change cannot be seriously addressed. Alarmingly, reports have forecast that carbon emissions from tourism will grow by 162% from 2005 to 2035. This is only to be expected because of the massive expansion of airports and increase in low-cost carriers. Moreover, the tourism industry is notorious for high per capita consumption of water, and poor energy efficiency and waste management issues. Four strategies to mitigate GHG emission from tourism can be distinguished: • Reducing energy use • Improving energy efficiency • Increasing use of renewables, and • Sequestering carbon through sinks Reducing energy use is the most essential aspect of mitigation. Tour operators can do this by changing the way they develop and market destinations and tourists in choosing where they wish to holiday, plus shifts in choice of transport mode from car and aircraft to rail and coach. Videoconferencing is an example of how changing management practices can have an impact on energy use. Tour operators have a considerable role in creating demand for less     •  

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By Khoo Hock Aun

Tourists lug around more than their baggage: Travel and tourism, with aviation, is today responsible for about 5% of greenhouse gas (GHG) emission

carbon-intensive journeys, as they design tour packages. They can increase length of stay, which would reduce the carbon footprint per tourist day. However, current tourism trends show an increase of short stays. Additional efforts to bring aviation technology to the theoretical limit (50% reduction of emission factors between 2005 and 2035), would contribute to an overall reduction of total emission from tourist travel (excluding same-day, including all transport modes) by 14% with respect to the business-as-usual scenario. The same overall emission reduction (14%) may be achieved with strong buy-in from hotels. New technology in car transport can cut 7% of all tourism emissions. Note, however, that the introduction of new air transport technology takes decades because ﬂeet renewal is tied to the long operational life of aircraft. Rapid introduction of new technologies is thus dependent on environmentally pro-active management decisions that need to be aided by government policy, such as emission trading.

Virtually all sources of renewable energy are relevant for tourism. Several studies have explored the role of renewable energy, particular in island destinations where power supply is expensive and unstable. These studies conclude that the use of renewables is economical and technically feasible. In many tropical destinations, investments in solar energy can pay off in two years. Biofuels are another option to contribute to more sustainable transport systems, even though several problems remain unsolved, particularly relating to the sustainability and efﬁciency of biofuel production and increasing competition for land, especially arable land. Also, the maximum share of biofuels for use in transport is estimated at less than 10%. Within the trade, carbon compensation or carbon offsetting is being practised, which means an amount of GHG emission equal to that caused by a certain activity (i.e. a ﬂight), will be reduced elsewhere, for instance through the planting of more trees. There is still a lot of confusion among tourists about what carbon

offsetting is. There is also evidence that frequent travellers are not ready to support voluntary carbon offsets. There is also a risk that carbon offsetting is becoming the means used by the industry to “reduce” emissions. This means producer responsibility is being turned into customer re-

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sponsibility, which may be problematic if no action to reduce fuel use is taken. As such, carbon offsetting can be seen as a controversial solution to climate protection, as it potentially diverts from the real causes of the problems and bypasses the structural and technological changes that need to be made to

achieve long-term GHG reductions. Considering the projected dynamic growth of tourism, there is a huge task ahead if tourism is to reduce its emissions to the same extent as other economic sectors. It needs to use the full arsenal of mitigation measures to get the job done.

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Carrot and big stick in energy-eﬃciency promotion 92 mil energy labels issued for 4,593 products in 31 categories Taiwan government wants energy-guzzling products out of the market

Dr Ning Yu is president of the Environment and Development Foundation and chairman of Taiwan Green Purchasing Alliance.

By Ning Yu

Due to limited domestic fuel sources, Taiwan relies heavily on imports to meet 99% of its energy demand. As such, energy conservation is a key element of Taiwan’s energy policy. To boost energy security and in keeping with the international trend of creating low-carbon economies, Taiwan implemented the voluntary Energy Label Scheme in 2001 (Figure 1). As the energy labels have been well received by consumers over the years, the government subsequently selected several electrical items as first target products, and promoted a separate mandatory energy-efficiency classification scheme. The purpose of this classification scheme is to encourage energy performance competition among these products and accelerate the phase-out of less-efficient products. Initiated by the Ministry of Economic Affairs (MOEA), the Energy Label Scheme was first applied to popular home appliances with high energy-saving potential. Products qualified to carry the label typically are 10% to 50% more energy-efficient than conventional products that just meet Taiwan’s national standards. For electrical products with high energy consumption, high daily use or long service life, the energy-saving benefits from using products carrying the label can be especially significant.

Figure 1: Taiwan’s energy label, a voluntary scheme started in 2001

To date, over 92.3 million labels have been issued for use on 4,593 products in 31 product categories (including home appliances, transportation vehicles, gas-powered appliances and office equipment). To encourage consumers to buy green products with lower energy consumption and to promote the development of the domestic green industry, the MOEA also implemented a subsidy programme for purchases of energy-label products between October 2008 and March 2009, providing up to NT$2,000 (about US$70) for each purchase. This programme subsidised purchases of 319,000 units of qualified products and resulted in economic benefits worth NT$7.939 billion (which is 12 times the total amount of government subsidies). In addition, it resulted in an annual reduction in electricity

usage of 39.5 TWh and 25,119 tonnes in carbon dioxide emissions. These results show that subsidies for energylabelled products can both stimulate the economy and reduce energy consumption. On top of the subsidy programme, the government amended the Energy Management Act in 2009 to stipulate the labeling of energy consumption information and energy-efficiency data on designated equipment and appliances. This move also established a legal basis for energy-efficiency classification and labeling mechanism and imposed fines for non-compliance. The energy-efficiency classification logo is in the form of a thermometer with a classification of 1 to 5 (1 being most efficient and 5 least efficient). The law required that they be applied to air-conditioners, refrigerators, automobiles, motorcycles and dehumidifiers from last year. This year, the energy-efficiency criteria for air-conditioners and refrigerators have been raised to improve the energy efficiency of commercial products in the market. The government hopes to quickly remove the least efficient energy-consuming products from the market through the dual approaches of voluntary energy labelling and mandatory energy-efficiency classification.    •   

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Why do we have to pay more for green products? Green products must cost less, if accounted in a life cycle perspective A green product should be resource-lean and generate low wastes/residues

Dr Prasad Modak is chairman of the Green Purchasing Network of India. He can be reached at pmodak@vsnl.com

By Prasad Modak

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a year – offsetting the higher cost of the detergent paid. Besides, the city will be able to cut down on generation of hazardous sludge, thereby reducing landﬁll requirements and cutting down costs even further.

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You walk into a supermarket and browse the section for green products and often wonder why the prices are a wee bit higher than the equivalent “brown” products. Some justify this price hike with the argument that these products carry a brand. Sporting an organic T-shirt at a party or serving organic coffee at a celebrity lunch has that distinguishing feature that you are essentially paying for. But fundamentally, why should you pay more for green products? Many believe, and rightly so, that the market size of green products is rather small today and there is no advantage of economies of scale for the manufacturer or retailer. Generally, the more you produce, the higher the material conversion efficiency, while resource input is lower and the generation of wastes/residues goes down per unit of product. Green products get produced in small lots, more like boutique items, and hence tend to cost more. It is odd that manufacturers go out of their way to make green products that cost more. The consumer does not buy them and the manufacturer says “see, no one wants them, so why should we produce in bulk?” Green products, if truly green, must cost less, if accounted in a lifecycle perspective. The problem is that life cycle costs and benefits are not generally computed and demonstrated to convince the buyer or the consumer. Price is often the driver for the decision. Life-cycle costs and benefits are unevenly shared and are often hidden. In a city, if everybody buys a biodegradable detergent at RM2 more, the annual operating cost of the central sewage treatment plant is going to go down by, say, RM500,000 and that may give residents a tax relief of RM5 over

A green product ideally uses less water and energy to produce and its production process emits less waste; so why should it cost more?

The problem is these benefits are not often quantified and not explicitly brought to the attention of the consumer and, importantly, not passed on. Again, the extended cost-benefit related computations are difficult as there is a paucity of information as well as no convergence on the methodology. Who should do this – the consumer, the manufacturer or the government? So there is no responsible or educated buying. Some argue that green products are bound to cost more if they use frontier technologies and materials that are yet to be commercialised. If green products use recycled products, the cost of recycling is sometimes more than the cost of virgin materials because of disproportionate costs of reverse logistics and often due to perverse pricing of resources. Green products are expected to be compliant across the supply chains that have informal segments. So you pay more for organic food ingredients as the

manufacturer will ensure proper wage to the labourer. But is it really necessary for green products to cost more, or have we all been conditioned to think that way? A green product should ideally be resource-lean and generate less waste/ residues. So it should provide an advantage of lower cost of inputs (water, energy, materials) and that of processing outputs (wastes/residues). All this should improve competitiveness and provide an incentive to produce more. So, are higher prices still justified? There are companies which have set prices of their green products to be comparable to conventional ones and, in some cases, even lowered them. Examples of such companies are Sierra Nevada Brewing Company, that uses fuel cells; Stonyfield Farm and Trader Joe’s yoghurt, that have reduced packaging; General Mills, which reduced the shape of noodles in Hamburger Helper to reduce packaging volume by 20%, and Procter & Gamble and Unilever, in association with Wal-Mart, which packed liquid detergents in concentrated formula to reduce use of water, plastics and cardboard. What works is innovation in greening. The process of going green should be used and leveraged to provide opportunities to the designers, engineers and marketing teams to work together in an out-of-the-box fashion. So do try to reason out and question the price you are offered for a green product when you next visit the supermarket. Look out for and buy from companies that maintain or lower the price of their green product. These companies will represent the hallmarks of innovation and long-term interests in influencing the market and help ensure business with sustainability.

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Asia’s urban challenges Rapid, unsustainable urbanisation and climate change threaten regional security Two-thirds of population to gain from improved urban planning in Asia Pacific

Asia’s urban future is one of opportunity. Urbanisation, well-managed, is a chance to put our development paradigm on the right track – on a track that will result in inclusive and sustainable development for Asia and the Paciﬁc. However, keeping to this vision, we are cognisant of the threats that urbanisation in the region brings. Changing our development paradigm will not be easy. We must plan our path forward on a deeper understanding of the challenges to overcome. There are four key urban challenges in Asia and the Paciﬁc:

The sheer scope and pace of urbanisation Our cities are already home to 1.6 billion people. By 2025, the urban population in Asia and the Paciﬁc will be 2.3 billion people. To put this ﬁgure in perspective: we need to provide jobs, housing, water, energy, transport, education and health infrastructure for a city the size of Melbourne – almost every month – for the next 15 years is an enormous challenge.

Unsustainable development As a region, Asia and the Paciﬁc have achieved spectacular economic growth and poverty reduction. Producing over 80% of the region’s GDP, cities have been at the forefront of this economic growth. However, this growth-ﬁrst strategy has come at a cost. Cities account for 67% of all our energy use, 71% of all our greenhouse gas emissions and generate 300 million tons of solid wastes per year. Our people suffer from congested roads, energy and water shortages, and air and water pollution.

Climate change Over 50% of Asia-Paciﬁc’s urban residents live in low lying areas and are at risk from extreme weather events such as ﬂoods and typhoons. The frequency and intensity of climate related disasters will increase – affect-

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Urban slums: 35% of Asia’s urban residents live in slums with persistent disparities in income as well as in access to services and opportunities

ing our economic, energy, water and food security. While natural disasters affect both the rich and the poor, it is the poor who suffer most because they do not have the assets to cope with risks and vulnerabilities.

Urbanisation of poverty, manifested by slums and squatter settlements Thirty-ﬁve percent of urban residents of the region live in slums. Urban Asia includes persistent disparities in income as well as in access to services and opportunities. Without addressing this, the grievances that stem from these disparities will sap the hope we presently hold for our urban future.

Despite these challenges, our vision for the future is one where cities are socially just and inclusive, environmentally sustainable, and increasingly, resilient to climate change and other shocks, while being the engines of economic growth. To get there, we need to reform urban planning and infrastructure design to make our cities compact and eco-efficient. We need to maximise the benefits of mass transit and transport systems. We need to invest in ecoefficient buildings and infrastructure, clean water, sanitation, waste management and smart energy grids. Secondly, we need to engage civil society and businesses to promote more sustainable life-styles. The private sector needs to embrace the well-being of our people and our planet, while generating profits. Our prosperity must be shared. Moreover, up-scaling of innovative solutions, green infrastructure technology and services will not only improve the lives of the poor, it could also turn them into pioneers of a low-carbon and sustainable future. Lastly, we need to ensure the poor have access to more secure housing and strengthen their ability to recover from disasters through communitybased finance, micro-insurance schemes and social protection. Adopting inclusive and sustainable development strategies will not be easy. It will require transforming the way we plan, manage and govern our cities. The governments of Asia and the Pacific, at both the national and local levels, can work to promote integrated approaches to urban governance and development. We can make our cities livable places of shared prosperity, social progress, cultural vibrancy and knowledge and ecological sustainability. If we get it right in Asia Pacific, we get it right for two-thirds of humanity. And our children will inherit a promising future. Noeleen Heyzer is Under-SecretaryGeneral of the United Nations and executive secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP). This article was excerpted from her statement issued in conjunction with the Fifth Asia-Pacific Urban Forum (APUF) in Bangkok in June 22-23 under the theme “Cities of opportunity”.

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editorial

The certification conundrum Create a balance between product information and great design No standards exist for what is “natural” or “fairly traded”

By Shel Horowitz

Everyone knows that third-party endorsement is a powerful credibility builder. This is especially true in the green movement, where so much of the marketing process is based on making a strong case that you have other values besides financial gain. Certification is one way to gain that credibility. When an independent agency verifies that you are doing what you say you’re doing, the customer’s trust of you and your products goes way up. But certification raises a number of other issues:

“organic” has a legal definition, and a neutral-party certification such as USDA Organic in the United States or Ecocert for European cosmetics gives it teeth. And various agencies such as the 26 members around the world of Fairtrade International (from Australia to the US) certify compliance with fair trade provisions: If you see those types of certifications, you know the claim was independently verified.

Retailers are also stepping into the breach. Whole Foods, for instance, now requires certiﬁcation for any product claiming to be organic. Of course in today’s wired world, shoppers themselves can play a role in verifying claims. Social media allows anyone to accuse a company of making false claims, and to attract a wide audience; this is one of many reasons to be scrupulously honest in all your claims.

Self-labeling vs true certification Many labels claim a product is “natural” or “fairly traded” – but no standards exist for what is natural or fairly traded, and no certifying body regulates the claims. Consumers are at the mercy of the manufacturer and have to hope for honesty. By contrast, the word

Space on the label Understanding the value of these certifications, some companies have paid for multiple certifications covering different aspects. For instance, I’m looking at a 3-ounce (66 g) bar of Theo 91%-cocoa chocolate that bears the following certifications and claims:

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What does the claim actually mean? In the green marketplace, numerous products make all sorts of claims. The purchaser has to sort out what’s really going on, and which claims are meaningful. Smart shoppers understand, for instance, that when a package says “made with organic ingredients”, that means as much as 30% of the product could be non-organic. They don’t yet have enough information to make an educated choice. What percentage of the ingredients is organic? Which ingredients are grown that way? The pesticide content of a non-food product like non-organic cotton will likely be much higher than the pesticide content of a fruit with edible skin, such as apples; all of this has to be factored into the buying decision. So this particular group will turn over the box and look at the ingredients list and assess of them are really organic, and in what order the organic and non-organic ingredients appear (thus, their relative predominance).

Shel Horowitz is the primary author of “Guerilla Marketing Goes Green”. He can be reached at shel@ greenandprofitable.com

• USDA Organic, certified by Washington State Department of Agriculture • Fair For Life social and fairtrade certified by IMO • Charity partner (Audubon, benefiting Costa Rican cacao farmers and bird habitat) • Kosher • 50% recycled packaging • Vegan Of the four ingredients, all four are noted as organic, and all but vanilla are also marked fair trade. That’s a lot of information, not even counting a big panel of text about the charity project. Imagine trying to fit all that on a 1-ounce (22 g) package label. On the one hand, you want to take full advantage of all the work you’ve done to get those multiple certifications you painstakingly earned – and on the other, you still want to create an attractive package with adequate white space and a great design, not cluttered up with a bunch of certification logos. If that were my challenge, I might put text like this on the wrapper: “Certified organic, fair trade, kosher and vegan. Benefits Audubon’s forest, farm, and bird preservation efforts in Costa Rica. For more details, please scan this QR code into your smartphone, or visit www._________.” That way, you get all the good stuff out front, provide two ways for people who want all the details to get them – including the instant gratification made possible by the QR code – and still keep plenty of room on the label. Sources: http://www.quicklabel.com/blog/2010/11/ natural-certification-for-cosmetic-labelsusa/ (up to 30% nonorganic in “made with”, Whole Foods requiring certification) http://usda-fda.com/articles/organic.htm (definition of organic, US) http://www.ecocert.com/en/natural-andorganic-cosmetics (standards for Ecocert) http://www.fairtrade.net/fairtrade_near_ you.0.html (Fairtrade International partners)

editorial

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New era in Malaysian waste management from Sept 1st? Federal government takeover raise questions of accountability and responsibility Need to engage public to minimise waste and to practice recycling

Dr Goh Ban Lee is a researcher who writes extensively on urban governance, housing and city planning

By Goh Ban Lee

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In 2007, the Malaysian Parliament passed the Solid Waste and Public Cleansing Management Act (SWPCMA, or Act 672) and the Solid Waste and Public Cleansing Management Corporation Act (SWPCMCA, or Act 673) to give the federal government legal powers to manage public cleansing and solid waste disposal. In the process, the Parliament also amended the Local Government Act of 1976 to remove the power of local councils regarding these activities. Recently, Minister of Housing and Local Government Datuk Wira Chor Chee Heung announced that the Acts would be implemented on Sept 1st. Malaysia will among the few countries in which the national government is responsible for such services, traditionally the domain of local authorities. There is no certainty that the two Acts will be enforced come Sept 1st as there has been deferments. But recent Chor has indicated the government is ready. As such, it is time to study the implications of the federal government’s new powers. For example, will it affect the push for recycling and minimisation of wastes? Can the local councils in Penang and Selangor continue to manage such services without further amending the Local Government Act? The costs of providing such a service are now paid for through rates collected from property owners and fees from business licences. Any increase in costs is borne by the residents and businessmen. The move to federalise public cleansing and solid waste management was initiated in 1995. Peninsular Malaysia was divided into three zones, each allocated to a concessionaire: northern zone to Environment Idaman Sdn Bhd, central to Alam

Flora Sdn Bhd and southern zone to SWM Environment Sdn Bhd. Legally, however, the local authorities are still responsible for such services and they pay these companies to do the work. From Sept 1st, the federal government will pay the three concessionaires for their work. However, the local authorities, except those of Penang and Selangor, will not be absolved of any payment. They will pay the federal government the amounts that they have been spending to manage such services. The federal government will take care of the extra cost after Sept 1st. Chor says the government is expected to cough up about RM500 million a year to cover the extra cost, based on the cost of RM8 per month per household. The ministry has estimated there are local authorities that pay only RM2.30 per household per month. This raises the questions of accountability and responsibility. As a general rule, residents and shopkeepers should be responsible for cleanliness and management of solid waste of an area. If they generate more waste or discard waste indiscriminately, they should pay for the increased cost of keeping their

living environment clean. Having the federal government take care of any cost increase means they are not held accountable for their behaviour. Will residents minimise waste and practise recycling after Sept 1st if additional costs are not borne by them? With the exception of those in Penang and Selangor, the local authorities will be relieved of the need to ﬁnd ways to be more efﬁcient in improving cleanliness in their towns or cities while keeping an eye on costs. Will the federal government ask the local authorities to pay extra if more waste is collected from certain areas? Can the local authorities say no? There is little doubt the Federal Department of Solid Waste Management and the Solid Waste and Public Cleansing Management Corporation have prepared initiatives to encourage the people to keep their towns and cities clean and to practise waste minimisation and recycling. Unfortunately, little has been made public. The people must see the rationale of new initiatives before they will co-operate. Little has been heard about how Penang and Selangor are preparing to manage public cleansing and disposal of solid wastes after Sept 1st. Will there be a new company owned by the state to do the job? If so, can the local authorities be shareholders? Can the local authorities from the two states continue to be in charge of such services after amendments to the Local Government Act in 2007? The implementation of the two Acts is nigh. There is little time to resolve these issues, unless implementation is deferred. But this will only lengthen the twilight that public cleansing and solid waste management has been in for more than 15 years.    •   

information

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Cooling the data centre power crisis Data Centre Park concept as answer to power and bandwidth demand Spam filtering a green and practical measure

By Stephen Ng

A huge surge in Internet activities in the last four years – no thanks to a revival of online businesses and the rise of social media – imposed such pressure on data centres that it set off a power and cooling crisis in 2007. It was this crisis that triggered the current push for green or energyefficient data centres. Malaysia’s Multimedia Development Corporation (MDeC) chief executive officer Datuk Badlisham Ghazali says: “Broadly speaking, the power and bandwidth demand by data centres is proportional to the activities on the Internet; hence, we can expect the operational cost of managing data centres to skyrocket.” He says the country went through the phenomenal dotcom era in the 1990s which, unfortunately, did not last very long due to the lack of good IT infrastructure. “When the dotcom bubble finally burst in 2000, very few buildings housing data centres were built, as there was already a glut of office space when all the dotcom companies disappeared. Many of the data centres built before 2000 were, in fact, left fighting for economic survival.” With no money to invest in new cost-saving initiatives, data centre designs did not move in step with seven years of new server design that delivered higher performance and density but also imposed higher power and cooling demands. Fast forward to 2007, when Internet business and other social media were revived, and there was a sudden surge in Internet activities. “This is why data centres which were pre-2000 designs could not cope with the cooling and power demands of newer servers,” says Badlisham. “This caused a power and cooling

A power crisis in 2007 led to growth of energyeﬃcient data centres

MDeC CEO Datuk Badlisham Ghazali

70% of data centre power is converted into heat Dimension Data’s David Cottingham

Data storage will increase six-fold between 2007 and end 2011 Storage Networking Industry Association (SNIA) Malaysia chairman Heoh Chin Fah

crisis in 2007 – the green push came about because of this – which resulted in a new generation of data centres designed around 2009 that were more energy-efﬁcient to cope with the growth in cloud computing.” The exponential growth in the number of Internet users has generated an even greater demand for data centres and servers. More powerful computers also meant higher power consumption. For example, a high-density rack mount server which

sits on a 15 sq ft space requires total power of 25,600 Volt-Amperes. This works out to be about 1,500 VA (or equivalent to 1,500 Watts) per sq ft. Storage Networking Industry Association (SNIA) Malaysia chairman Heoh Chin Fah estimates that data storage will increase six-fold between 2007 and the end of this year. “With this comes an increase in energy costs,” he says. As David Cottingham of Dimension Data rightly points out, most of the overheads from operating a data centre comes from the power distribution and cooling systems as 70% of data centre power is converted to heat. He says companies that do not adopt greener data centre practices will become less competitive. Soon, there will be more pressures in the form of taxes, ﬁnes and threat of closure imposed by governments. Recently, Australia joined a number of other developed countries to propose carbon tax for the country’s 500 biggest emitters. In countries like Malaysia, fuel subsidies are being removed in stages and this has started to push up power tariffs. Badlisham suggests that for Malaysia to become a regional hub for data centres, new and greener strategies have to be thought through and implemented. Compared to pre-Internet data centres, which were mainly located within corporate ofﬁces, the scenario now is quite different. “The bulk of the operating costs for Internet data centres is from both power (30%) and bandwidth (30%),” he says. “The huge number of servers required contributed to rising energy costs to operate and maintain the temperatures of the machines which are run 24hours, seven days a week. Because of the huge number of consumers, the other cost comes in the form of higher bandwidth to support online activities.” Badlisham says Malaysia is poised to become a world-class data centre hub, creating a total of 13,290 jobs and increasing the supply of data centre space from 500,000 sq ft to 5 million sq ft by 2020. To keep the costs of power and bandwidth down, he suggests IT operators think of new approaches and concepts, including setting up Data Centre Parks.    •   

spam filtering. “In one particular company, for example, there were External Data power 34 million emails in a centre year, of which 33 million Data N were spam mails; hence, centre reducing traffic to mail 2 servers is a green and practical measure,” suggests SNIA’s Heoh. Powers While some green cKLlleG Co-gen ideas require heavy water Data Data plants investments, some are centre centre 80–90% just common sense. energy 3 6 For example, Matthew eƫcLency Rajendra, regional Data director of Green Data centre centre Computing Initiative, suggests using energy4 5 2ptLcal efficient uninterruptible ƩEre EacNEone power supply (UPS) or new UPSes. “There are a lot of losses in the old An advantage of a purpose-built Data Centre Park is that construction lead time for data centres can inverters and transformers be slashed from 30–36 months to around 18–24 months. This is because there is already a co-gen which were not designed plant, where centre operators can expect tremendous savings from reducing power losses and as green,” he says. “The availability of chilled water. newer and more efficient UPSes generally have RM295 bil Data Centre Park concept 92% to 95% efficiency.” Very few in the IT industry realise that Basis Bay technical director may be by using combined cycle gas turbine T Rajan, who took the argument from saved with power plants, some 79% of original a design perspective, says a building’s fossil fuel energy is lost at various north-south orientation will avoid the energy stages during power generation and rising and setting sun, thus keeping efficiency transmission, before it reaches the data the building naturally cool, while centre. Only 21% of this fossil fuel natural ventilation to all the common PA Vision’s Eric Chang energy is utilised for data computation. corridors are achieved through a “A good solution to this is to set up ducted fresh air fan intake system Newer a more efficient co-generation gas inducing natural air-flow throughout and more turbine power plant nearer the data the building. “Double brick walls also centre, where the chilled water from help to prevent heat penetration.” efficient the power station can be used to cool To reduce cost of electricity UPSes have down the data centre,” Badlisham says. and to enhance energy efficiency, 92% to 95% The other advantage of a photovoltaic panels are installed purpose-built Data Centre Park is that to harness solar power. During the efficiency construction lead time for data centres day, natural lighting is encouraged Matthew Rajendra can be slashed from 30–36 months to using tinted and laminated windows of Green Computing Initiative around 18–24 months. This is because to prevent direct sun exposure and The way forward there is already a co-gen plant, ultimately heat absorption to the floor Malaysia has announced its plan to where centre operators can expect below. “Even hot air emitted by the reduce carbon intensity by 40% by tremendous savings from reducing Computer Room Air-Conditioning 2020 compared to 2005 levels, but power losses and availability of chilled (CRAC) outdoor condenser units are what matters to data centre operators, water. gradually being harnessed to provide as PA Vision’s managing director Eric “Besides, power and bandwidth hot water to the toilets in the building,” Chang points out, is the estimated providers have only to handle a he adds. “We will be incorporating this specific targeted area for high-capacity potential energy savings of RM295 simple yet practical effort in stages as billion (US$99.16 billion) if the country we progress.” requirements planning instead of ad can achieve this target. hoc demands, and such cost savings Those quoted in this article had taken part Some of the immediate steps can be passed on to the operators of in the recent Green Data Centre conference organised by Comfori in Kuala Lumpur. that can be implemented include data centres.”

Data Centre Park concept

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Data centre 1

information

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Signs that save

Energy Star logo

Energy-eﬃciency ecolabels help consumers make greener choices Standards and certifications drive product design innovation

By Siaw Mei Li Energy efficiency (EE) ecolabels are increasingly found on household and office electrical products as energy prices continue to rise. It is a consideration for many in the purchase of computer equipment and white goods such as air-conditioners, refrigerators and washing machines. Not only are such durables relatively expensive purchases, but they can also be power guzzlers, contributing heavily to the monthly utility bill. While trading in old appliances for newer, more energy-efficient models is often a good place to start, choosing the right replacement model is also important and EE labels help drive resource-saving behaviour in industry as well as consumer markets.

Malaysia’s Energy Commission label uses a numeric and star count format

Some common formats for energy efficiency ratings are star or tick/ check marks, typically on a scale of least-efficient one to most-efficient four or five (Australia, Japan, India, Malaysia, New Zealand, Singapore); colour spectrum bars or dials, typically running from an optimal green to moderate yellow to undesirable red (EU, China, Taiwan); numeric scales

(China, Malaysia, Taiwan, Thailand); and letter ratings such as the EU’s A to G scale. The standards and certification processes to assign an ecolabel or EE rating to an electrical product encourages greater transparency, innovation and design competitiveness in manufacturer markets. While brand pedigree may once have been enough to move products off the shelf, manufacturers must now compete on kWh per cycle/annum costs of running a dishwasher or refrigerator, and seek to reduce a machine’s noise levels during operation. Introducing Energy Star’s new “Most Efficient” designation in midJuly, US Energy Secretary Steven Chu commented: “The new Most Efficient designation is the next step towards encouraging new, more energy-efficient products to enter the market, so that consumers will have even more choices… that will save them energy and money.” That such a designation was introduced highlights that even rating systems face the positive predicament of keeping up with advances in EE. The basic Energy Star label or an “A” in the EU system were once the highest attainable standards in their respective markets. Today, however, the original Energy Star is a basic requirement in the US, while the EU scheme has since launched A+, A++ and A+++ ratings to reflect new EE technology highwater marks. Rating inflation notwithstanding, EE standards have catalysed a virtuous circle of rising consumer expectations and competitive industry upgrading, that forces a more environmentfriendly electrical market into being. For other stories on energy efficiency initiatives in Asia, see our cover story on Malaysia’s SAVE Programme (page 14) and Dr Ning Yu’s editorial on Taiwan’s energy labels on page 49.

The Energy Star programme began in 1982 as a voluntary labelling programme by the US environmental Protection Agency (EPA) to identify and promote energy efficient electrical items to reduce greenhouse gas emissions. Computers and monitors were the first items to bear the label; many of us still see the Energy Star logo on the screen when our PCs boot up. In partnership with the US Department of Energy, the EPA has since extended the label to cover other major appliances, office equipment, lighting, home electronics, new homes and commercial and industrial buildings. Foreign governments are working with the EPA to promote specific Energy Star qualified products in their countries through a single set of energy-efficiency qualifications. Energy Star’s international partners are Australia, Canada, the European Union, the European Free Trade Association, Japan, New Zealand, Switzerland and Taiwan.

Energy

Washing machine

Manufacturer model More efficient

A B C D E F G

Less efficient

Energy consumption kWh/cycle

1.75

(based on standard best results for 60°C cotton cycle) Actual energy consumption will depend on how the appliance is used

Washing performance A: higher

G: lower

Spin drying performance A: higher G: lower Spin speed (rpm)

A B

BCDEFG

CDEFG 1400

Capacity (cotton) kg Water consumption Noise Washing (dB(A) re 1 pW) Spinning

5.0 5.5 5.2 7.6

Further information contained in product brochure

The EU energy label incorporates a colour spectrum and A-to-G rating scale    •   

information

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Training GBI facilitators Participants divided into groups usually with a mix of architects, engineers and quantity surveyors Pass rate less than 50%

The people involved in Malaysia’s Green Building Index (GBI) accreditation are organised in three tiers. At the top is the GBI accreditation panel, an independent regulatory body, followed by the GBI certifiers, comprising experienced professionals who conduct the assessment and accreditation. The third is the GBI facilitators, professionals who assist their clients and the design teams to enhance their projects to meet or exceed the GBI rating system requirements. Today, there are almost 400 accredited GBI facilitators in Malaysia. Von Kok Leong, course director of the GBI facilitator course, says the programme trains aspiring GBI facilitators to be conversant with the rating tools. He says: “This course was created for architects, engineers and even quantity surveyors who want to be accredited facilitators. Green building is neither exclusive to architecture nor engineering. It requires knowledge from both fields and more.” The training of GBI facilitators and certifiers, as well as the administration of GBI accreditation, comes under Greenbuildingindex Sdn Bhd, a wholly-owned subsidiary of the Malaysian Institute of Architects (PAM) and the Association of Consulting Engineers Malaysia (ACEM).

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By Suvarna Beesetti

Von Kok Leong… facilitators advised to form teams of two or three people, especially if project is large

Since May 2009, Greenbuildingindex Sdn Bhd, together with the Malaysia Green Building Confederation (MGBC), has conducted 13 GBI facilitator courses with some 120 to 140 people attending each session. There are nine trainers. Non-members pay RM1,500 (US$500) for the three-day course, while members of PAM, ACEM, MGBC, the Institution of Engineers Malaysia (IEM), the Institution of Surveyors

Prerequisites to be a GBI facilitator 1 a) A registered professional member of the Board of Architects, Board of Engineers or Board of Quantity Surveyors; or b) A recognised degree in architecture, engineering, quantity surveying or other building related disciplines as approved by the GBI Accreditation Panel; and a minimum of three years relevant working experience acceptable to the GBI Accreditation Panel; or

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Malaysia (ISM) and the Malaysian Institute of Planners (MIP) pay only RM1,200 each. Von says: “During the course, participants are briefed on each GBI rating tool and are taught how to evaluate and score points based on real examples of existing buildings. Besides that, they are also trained to help the building owner or developer to understand what the new building will be like.” The course covers all aspects of the GBI rating tool, including its six key criteria: water efficiency, energy efficiency, indoor environmental quality, sustainable site planning and management, material and resources, and innovation. During the course, participants are divided into groups and are given an assignment, which is part of the examination process. Members of each group usually consists of a mix of architects, engineers and quantity surveyors. Von says: “Each group is provided with the base building specifications of an assigned building. Their task is to turn it into a green building. Some groups are allocated a certain budget to achieve a specific rating, i.e., Silver, Gold or Platinum, while others will have to evaluate and make recommendations according to their calculations.” The other part of the examination consists of 40 multiple choice questions. Participants are graded on their attendance, the written test, the peer review within the group as well as the group assignment. The latter makes up a significant part of the overall grade and determines whether the group fails or passes the course. The average pass rate has been less than 50%.

GBI facilitator scope of work c) Other building practitioner with at least five years relevant working experience acceptable to the GBI Accreditation Panel; and 2 Successfully completed the GBI facilitator course (i.e. both basic and advanced courses). A participant is qualified to sit for the examination upon compliance with prerequisites 1 & 2. After passing the examination, he may apply to be registered as a GBI facilitator.

Basic facilitator services will include: • Conceptual stage • Design development • Contract documentation • Contract administration • Commissioning, monitoring and fine-tuning • GBI completion and verification assessment (CVA) submission

After passing the exam, a facilitator has to register with GBI before he can practise. Von says: “While some facilitators practise alone, they are advised to form a team of two or three people, especially if the project is large and complex.” He adds: “This is necessary because a typical building takes about three years to complete from the

design stage to completion, and a facilitator’s involvement is about as long. During site inspection, a facilitator may also be expected to be on site to verify certain issues.” To keep the accredited facilitators abreast of the latest development, MGBC regularly organises Continuing Professional Development (CPD) training for accredited facilitators. Those

who wish to reregister themselves with GBI must accumulate a ﬁxed number of CPD points each calendar year by attending the training. GBI has plans to introduce professional courses, which are similar to the Certiﬁed Green Mark Manager/ Professional Scheme. Von says facilitators who qualify from the professional course can command higher fees.

Guidelines for GBI facilitator fees Item

Value bracket (RM) Start

End

Cost range (RM)

Min fees (RM)

% on Add

Max fees (RM)

Max overall fee %

10,000,000

10,000

0.400

40,000

0.40

10,000,001

50,000,000

39,999,999

40,000

0.350

180,000

0.36

50,000,001

150,000,000

99,999,999

180,000

0.250

430,000

0.29

150,000,001

300,000,000

149,999,999

430,000

0.100

580,000

0.19

300,000,001

500,000,000

199,999,999

580,000

0.075

730,000

0.15

500,000,001

Any value above

730,000

Negotiable

NOTE: Recommended fees exclude optional services such as: 1) Commissioning specialist services from the onset of project until GBI verification assessment 2) Post-occupancy verification and re-commissioning to suit tenancy fit-outs (if not covered under Option 1) 3) Detail energy modelling based on dynamic hourly analysis for GBI Gold and Platinum 4) Daylight simulation modelling

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China’s top thermal players lose total of US$260 mil China’s top ﬁve thermal power producers – China Huaneng Group, China Datang Corporation, China Huadian Corporation, China Guodian Corporation and China Power Investment Corporation (all based in Beijing) reported combined losses of about US$260 million in May 2011, a month after China’s National Development and Reform Commission increased on-grid prices for electricity in certain areas. China Electricity Council (CEC) reported the same losses in April. (Source: Industrial Info Resources)

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Huadian gets approval for 198 MW wind farm in Haiyuan

The disappearing shopping bag First, ﬁll a mid-sized bowl with hot water (63º Celcius). Then put your plastic-looking Puma shopping bag inside. Stir and wait three minutes. And voila! A bowl of red water, with cornstarch, and no bag. You may dispose of the water in the sink, or use it to water your plants. Puma, which recently did an analysis of their carbon footprint, came up with “Clever Little Shopper” – a bright red and 100% biodegradable cornstarch bag that dissolves in water. If you are not sure how to do it, there is a 1.42 minute video entitled The Amazing Disappearing Shopping Bag on Youtube. Last year, Puma came up with a “Clever Little Bag” that won a good design award. The bag was launched in North America and Europe and uses less packaging, fewer raw materials and less water and energy to produce than traditional shoeboxes. Savings: 8,500 tonnes of paper, 20 million megajoules of electricity, 1 million litres of fuel and a 1 million litres of water. (Source: Puma website, Celsias)

China Huadian Corporation, which produces about 10% of China’s power, received preliminary approval for its 198 MW Nanhuashan wind farm in Haiyuan from the Development and Reform Commission of the Ningxia autonomous region recently. Haiyuan is planning on a gigawatt-sized wind farm project which will be constructed soon. About 300 MW of wind farms received approval in Haiyuan in the ﬁrst half of this year.

system. The approach is being practised by the Japanese immigrants of Tome-Acu, Brazil. Meiji will be promoting the chocolate among ecoconscious consumers. (Source: www. japanfs.org)

Chocolates to keep ecoconscious consumers smiling

Farming freshwater algae on the high seas

Meiji Co Ltd has started selling a chocolate bar called “Agroforestry Chocolate”. The chocolate is made from cocoa beans grown under the agroforestry system. Agroforestry allows different crops to be grown together on a single farm, although the original farmland may have been created by deforestation. It keeps the soil covered with green plants and provides sustainable production that is impossible under the monocropping

The big names in the algae industry may be Solazyme or Synthetic Genomes today, but a new name to take note of is Algasol Renewables. Algasol has designed a photobioreactor (PBR) system that can cut cost by 90%. PBRs are traditionally long snaking tubes made of clear material that allows sunlight to reach the algae-containing liquid within. While effective, these are costly. What Algasol has done is grow freshwater microalgae in large plastic bags that ﬂoat on saltwater. Then, as in other bioreactors, nutrients and CO²

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are pumped in to feed the algae. Algasol won the Frost & Sullivan 2010 Global Algae Biofuels Green Excellence in Technology Innovation Award for this design, which provides a scalable low-cost design that provides optimal light exposure, high biomass concentration, low energy use and efﬁcient system control. The sea removes energy costs related to landbased PBRs because seawater acts as a temperature buffer and the waves help mix the algae in the bags. The company says its goal is to sell the patented product and method, rather than produce the algae themselves. (Source: Celcias, blog. cleantechies.com)

Supply fears double prices of some rare earths The prices of some rare earths doubled recently over fears of inadequate global supply. The rare elements are needed in clean technology

innovations such as electric vehicles, solar panels and wind turbines. According to the Financial Times, Beijing put restrictions on Chinese mines, causing diminished supply and exports. China produces 90% of the elements. The price of terbium oxide – which is used in hybrid vehicles – is more than US$3,000/kg. (Source: www.cleanbizasia.com)

Tesco Lotus and Unilever go green in Thailand Tesco Lotus and Unilever Thai Holdings are working on a pilot project to encourage greater use of environmentfriendly products in Thailand. Bangkok Post reported Tesco Lotus senior corporate affairs manager Saofang Ekkalukrujee as saying the partnership was to help Tesco Group halve carbon emissions from the 2006 baseline by 2020. Tesco’s carbon road map covers its properties, distribution networks and customers. It recently hired the University of Manchester to conduct a survey on use of green products in the UK and found three barriers among customers: higher expenses, a lack of information and the perception that an individual cannot make a difference. Initially, the hypermarket chain will launch the “Preventing Global Warming and Let’s Go Green” campaign with its partners who include policymakers such as the Energy Ministry and vendors like Unilever Thai Trading to make green products more affordable and available. Tesco Lotus plans to extend its scheme to other vendors.

Misawa launches sales of mass-produced eco-homes Misawa Homes Co, a major house manufacturer in Japan, launched nationwide sales (except in Hokkaido and Okinawa prefectures) of its wood-based house called the GENIUS LCCO2 Minus Model. This is a mass-produced version of its ECO ﬂagship model that was completed last November, the ﬁrst concept house aimed at realising a “Lifecycle

Catholic World Youth Day in Madrid goes green Rows of youths pedaling away on stationary bicycles to recharge their phones, laptops and mobile phones will be a common sight at the Catholic World Youth Day in Madrid, Spain, from August 16th to 21st. The energy charging bicycle is one of the many initiatives to reduce the impact of the gathering of about 1 million youths. Online applications for car-pooling will be available along bus schedules, and maps for those who want to walk or cycle. There will collection points for recyclables. Organisers are also buying carbon credits to offset pollution from a hydropower in Honduras, a reforestration project in Uganda, landﬁll methane recovery projects in China and Turkey and a wind energy ﬁeld in New Caledonia, off Australia. Emissions will be calculated by Zeroemissions, a company based in Abengoa, Spain. The Pope has installed solar panels on the Paul VI auditorium, where he speaks with Catholic faithful every Wednesday. The new Popemobile will be a hybrid vehicle that relies on an electric motor. (Source: Willy Thorn as reported in Herald, Malaysia, and CWN)

IAEA says rare earth project must meet conditions

Carbon Minus” performance. Lifecycle Carbon Minus aims at reducing CO² emissions to zero or below throughout the overall lifecycle of a building, from construction and occupancy to dismantling. Aside from its Cascade Solar System (using solar power and heat) and extra insulation system, the house is equipped with an energy monitoring system and an outdoor charging station for electric vehicles and plug-in hybrid vehicles. The company says an annual energy selfsufﬁciency ratio of 147% is possible. (Source: www.japanfs.org)

Nuclear watchdog International Atomic Energy Agency (IAEA) has given the nod to Lynas Corporation Ltd’s rare earth plant in Kuantan, Malaysia, on condition that it has a long-term waste management plan. The nine member IAEA panel says the plant meets international standards but outlined 11 recommendations that include a waste management plan, the decommissioning and dismantling of the plant at the end of its life (after 30 to 50 years), and remediation. IAEA suggests a fund be set up for this. Lynas Corp will start production end of this year with delivery slated for the ﬁrst half of 2012 while complying with the recommendations, Lynas executive chairman Nicholas Curtis    •   

StarHub goes SOLO with solar-charging mobile phone StarHub and Foresight Technologies launched Singapore’s ﬁrst solar mobile phone. The rugged looking SOLO comes with a solar-charging battery that backs up its lithium one, a shock-proof army-green rubberised casing, a 1.8-inch LED screen with 65K colours, a mini-torchlight and an FM radio. It is also splash-proof and dust-proof. The solar battery charges automatically in sunny spots and takes 24 hours to fully charge. It has a standby time of up to 200 hours and talk time of up to 200 minutes. Starhub head of sales and marketing Ng Long Shyang says the SOLO has no built-in camera making it suitable for places where camera phones are banned such as military camps. The SOLO sells for S$99 (US$81) with a oneyear StarHub Mobile post-paid plan (except PowerValue 80) at StarHub shops (www.starhub.com) and selected outlets.

Korean refiner promises to explore green Korea’s second largest crude oil reﬁner GS Caltex made more money than ever in fossil fuels last year – sales went up by 71% to 33.4 trillion won (US$30.96 billion) – but it says it will expand its efforts in green energy. Its subsidiary, GS FuelCell, has developed 1 kW residential fuel cell using natural gas and 5 kW fuel cells for combined heat and power. GS Caltex’s more ambitious plan, through another subsidiary, GS Platech, is to convert energy from waste by using plasma technology.     •  

With the high temperatures generated by plasma burning, heavy metal and dioxin waste are burned off, reducing toxins by 90%, the company says. The gases can also be used in power generation. (Source: www.cleanbizasia.com)

certified under the FSC gold standard certification scheme and also the longest certified tropical rainforest globally. (Source: The Star)

Korean green agency signs up tenancy with Masdar City

Japanese firms team up for solar projects Japanese ﬁrms are planning to form alliances to bid for solar power generator and plant projects in the global market, in competition against Chinese and other rivals. Nikkei business daily says they plan to form consortiums of three to nine companies each to bid for projects in Indonesia, the Middle East and North Africa, Latin America, Mongolia and Thailand. The Japanese government will support these teams by negotiating with foreign governments, and with ﬁnancial aid. The report also says that Panasonic, JGC Corp, Mitsui & Co and three other companies will be teaming up to bid for a solar power project in Indonesia. Five teams will start moving this year to win at least one order each by autumn 2013. (Source: Nikkei, AFP)

Another 300,000 ha FSC-certified in Malaysia Malaysia’s Ulu Segama-Malua Forest Reserves (241,098 ha) and Tangkulap-Pinangah Forest Reserves (50,070 ha) in Sabah were recently certified as well-managed forests under the Forest Stewardship Council certification scheme by the Scientific Certifications Systems (SCS). The certificates were presented to Sabah Forestry Department director Datuk Sam Mannan by SCS. The Deramakot Forest Reserves (55,139 ha) and the Sabah Softwoods Sdn Bhd forest plantations (27,313 ha), also in Sabah, were certified on 1997 and 2007 respectively. The Deramakot forest was the first lowland mixed dipterocarp tropical forest in the world to be

-.

was reported as saying in Malaysia’s theSun and Reuters. Malaysian Ministry of Trade and Industry secretarygeneral Datuk Dr Rebecca Fatima Sta Maria says the ministry will ensure all recommendations are complied with. These assurances, however, have not placated locals who object to the RM700 million (US$232 million) plant. Lynas admitted it failed to engage the people sufﬁciently.

South Korea’s Global Green Growth Institute (GGGI) has opened an office in Abu Dhabi and plans to move into the carbon-neutral Masdar City once the latter is ready. The institute has partnered with ten countries, including the United Arab Emirates (UAE) this year, to drive green economic growth. According to UAE media The National, the most prominent aspect of growing relations between South Korea and Abu Dhabi is a plan for the South Korean utility Kepco to build four nuclear reactors, worth US$20 billion in Abu Dhabi. In March, the emirate also awarded Seoul a stake to develop one or more oilfields with at least 1 billion barrels of reserves that will boost South Korea’s oil and gas sufficiency from 10.5% to 15%. The 6 sq km Masdar City has signed up corporations such as General Electric and Siemens as anchor tenants but is struggling to get new ones amidst the economic crisis.

Australia unveils wide-ranging carbon-reduction scheme Australia’s worst polluters will have to pay a A$23 per tonne carbon tax from next year, a precursor to the country implementing the largest emissionstrade scheme outside Europe in 2015. Prime Minister Julia Gillard said 500 companies, including steel and aluminium manufacturers, will be made to pay the tax which goes up 2.5% every year. Australia is the rich world’s worst per-capita greenhouse

gas emitter as it relies heavily on coal-ﬁred power stations for electricity. The plan will cut 159 million tonnes of carbon pollution in 2020, reducing emissions by 5% of 2000 levels. To win buy-in, Gillard says more than A$24 billion to be raised from pollution permit sales over the next three years will go to households in the form of tax cuts worth more than A$15 billion. Outside the EU, only New Zealand has a national carbon scheme. Treasurer Wayne Swan says all taxpayers earning below A$80,000 a year would get tax cuts worth around A$300 a year, which analysts say could actually help boost the struggling retail sector, where spending has been sluggish. (Source: Reuters)

Knowledge & networking

AUG

Green Automobil 2011 Expo 10th-12th August 2011 Pragati Maidan, New Delhi http://greenautomobil.com

SEPT

2nd Biomass Pellets Trade Asia 7th-8th September 2011 Sheraton Grande Walkerhill, Seoul, Korea www.cmtevents.com/aboutevent.aspx?ev=110917& iGEM 2011 (2nd International Greentech and Eco Products Exhibition & Conference Malaysia) 7th-10th September 2011 KLCC, Kuala Lumpur www.igem.com.my/2011 International Green Building Conference (IGBC) 2011 13th-16th September 2011 Suntec City, Singapore www.sgbw.com.sg Build Eco Xpo (BEX) Asia 2011 14th-16th September 2011 Suntec City, Singapore www.bex-asia.com

Paint-on solar panels on windows and roofs

3rd International Conference on World Class Sustainable Cities (WCSC) 2011 20th September 2011 Sime Darby Convention Centre, Malaysia www.pam.org.my/events/events2011/Leaflet_as_at_5_July_2011.pdf

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Electric, Power & Renewable Energy Indonesia 2011 21st-24th September 2011 Jakarta International Expo Kemayoran, Indonesia www.pamerindo.com/events/4

Australian researchers have developed solar panels which can be painted or printed directly onto a surface. With help from the Commonwealth Scientific and Industrial Research Organisation (CSIRO), University of Melbourne PhD student Brandon MacDonald worked out how to make solar cells so small they can be suspended in liquid such as ink. “We can then apply this ink onto a surface, so this could be glass or plastics or metals,” MacDonald told ABC News. “What we could do is integrate these into the building as it’s being made, so you can imagine solar windows, or having it actually be part of the roofing material.” The nano-crystals will have a diameter of a few millionths of a millimeter. Paint-on solar panels will use only 1% of materials used in traditional panels. MacDonald hopes to bring the new technology to market in five years, and at prices two to three times lower than traditional ones.

2nd Annual Green Tech Asia 26th-27th September 2011 Kuala Lumpur, Malaysia www.comfori.com/greentech

5% discount for GPA subscribers

Renewable Energy World Asia 2011 27th-29th September 2011 KLCC, Malaysia www.renewableenergyworld-asia.com/index/conference-information. html 10% discount for GPA subscribers

3rd Annual Sustainable Cities 2011 27th–30th September 2011 Pan Pacific Hotel, Singapore www.sustainablecitiesasia.com

OCT

All-Energy Australia Exhibition & Conference 2011 12th-13th October 2011 Melbourne Convention & Exhibition Centre, Australia www.all-energy.com.au China Wind Power 19th-21st October 2011 New CIEC, Beijing, China www.chinawind.org.cn/home.html Visit www.greenpurchasingasia.com for the latest event listings Green Purchasing Asia is a media partner    •   

ď&#x2DC;&#x152;ď&#x2DC;&#x201C;ď&#x2DC;&#x2018;ď&#x2DC;&#x2030;ď&#x2DC;&#x203A;ď&#x2DC;&#x201C;ď&#x2DC;&#x2013;ď&#x2DC;? Beginning this issue, the Homework section will review not only books and reports, but also other forms of useful resources and background reading, including websites and periodicals both printed and digital.

World Economic and Social Survey 2011 UN Department of Economic and Social AďŹ&#x20AC;airs Economic & Social Affairs

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The latest World Economic and Social Survey (WESS) reports that over the next three to four decades, humankind must bring about a technological overhaul of production processes to end poverty and avert potentially catastrophic climate changes and environmental degradation. This means major investments will be needed globally to develop and scale up clean energy technologies, sustainable farming and forestry techniques; to climate-proof infrastructure; and to harness technology for reducing non-biodegradable waste. Those seeking to better understand these challenges and opportunities would do well to pick up or download a copy of this publication by the UN Department of Economic and Social Affairs (UN-DESA). Sha Zukang, Under-SecretaryGeneral of UN-DESA and Secretary-General of the UN Conference on Sustainable Development (a.k.a. Rio+20) ďĄ&#x201A;ďĄ&#x20AC; ď&#x2DC;&#x2039;ď&#x2DC;&#x2013;ď&#x2DC;&#x2030;ď&#x2DC;&#x2030;ď&#x2DC;&#x2019; ď&#x2DC;&#x201D;ď&#x2DC;&#x2122;ď&#x2DC;&#x2013;ď&#x2DC;&#x2021;ď&#x2DC;&#x152;ď&#x2DC;&#x2026;ď&#x2DC;&#x2014;ď&#x2DC;?ď&#x2DC;&#x2019;ď&#x2DC;&#x2039; ď&#x2DC;&#x2026;ď&#x2DC;&#x2014;ď&#x2DC;?ď&#x2DC;&#x2026; â&#x20AC;˘ ď&#x2DC;&#x2026;ď&#x2DC;&#x2122;ď&#x2DC;&#x2039;ď&#x2DC;&#x2122;ď&#x2DC;&#x2014;ď&#x2DC;&#x2DC; ď žď źď ˝ď ˝

says of WESS: â&#x20AC;&#x153;The report is required reading as we gear up for Rio+20, which is an opportunity to deďŹ ne pathways to a safer, cleaner and more prosperous world for all.â&#x20AC;? Subtitled The Great Green Technological Transformation, WESS 2011 outlines why green adaptation is necessary, describes the energy transformation process itself and cites examples of how various countries have carried out energy transition programmes. Subsequent chapters address the importance of green energy in addressing food scarcity and mitigating environmental disasters and climate change. The report closes by discussing the implementation of national policies for green development and how global cooperation for sustainable development and reform might be achieved. WESS 2011 can be downloaded as a free PDF at www.un.org/en/development/desa/policy/wess/ index.shtml

MongaBay.com This website is one of the worldâ&#x20AC;&#x2122;s most popular environmental science and conservation news sites. Founded in 1999 by a young scientist named Rhett A Butler (yes, we kid you not; do go online to look up this enterprising researcherâ&#x20AC;&#x2122;s story), MongaBayâ&#x20AC;&#x2122;s objective is to raise awareness of and interest in wildlife, wildlands and environmental issues. Butler writes and takes photographs for most of the siteâ&#x20AC;&#x2122;s content today, except where stated otherwise. Barbara Bramble, chair of the steering board for the Roundtable for Sustainable Biofuels and the featured personality of this monthâ&#x20AC;&#x2122;s

People section, names Mongabay as a favourite resource for her work on conservation. Itâ&#x20AC;&#x2122;s not hard to see why as this website is a virtual centre of actionable information, thoughtful commentary and lovingly captured photography. Butlerâ&#x20AC;&#x2122;s passion for nature is evident on every page of this dense accumulation of articles, pictures, factsheets, blogs and reports. The main Mongabay site has branched into sections and companion sites on more specialised topics such as â&#x20AC;&#x153;Rainforestsâ&#x20AC;?, â&#x20AC;&#x153;Tropical ďŹ shâ&#x20AC;?, â&#x20AC;&#x153;Environmental newsâ&#x20AC;? and â&#x20AC;&#x153;Madagascarâ&#x20AC;?. Thereâ&#x20AC;&#x2122;s also a Mongabay â&#x20AC;&#x153;for kidsâ&#x20AC;? area where key information about rainforests are presented in easily understandable bitesize portions, making it extremely useful as an educator resource. Basic rainforest information is available in about three dozen non-English languages and dialects, from Arabic to Indonesian to Vietnamese. Mongabay is also publisher of the peer-reviewed, open-access academic journal Tropical Conservation Science.

This site has been used as a source by top international media such as the BBC, CNN, the Discovery Channel, National Geographic and Fortune Magazine. In April 2008, Mongabay. com was named among

TIME magazineâ&#x20AC;&#x2122;s Fifteen Top Green Websites.

Incentives for Renewable Energy, Energy EďŹ&#x192;ciency & Green Buildings in Malaysia Malaysian Ministry for Energy, Green Technology and Water

Available in print and also as a free PDF download, this handbook by the Malaysian Ministry for Energy, Green Technology and Water (KeTTHA) contains key information on ďŹ scal incentives provided by the government for the generation of renewable energy (RE) and the adoption of energy efďŹ ciency (EE) initiatives. Key terms and abbreviations are deďŹ ned at the beginning of the book. The application and approval processes are outlined succinctly and the government agencies responsible for these procedures are listed along with their contact numbers and web addresses. Also included is a section on incentives for buildings obtaining Green Building Index certiďŹ cation. The contents of this handbook apply to energy producers and users, whether they are connected to the national electricity supply network or operating in â&#x20AC;&#x153;stand-aloneâ&#x20AC;? (or off-grid) environments. To download this book, direct your browser to: www.kettha.gov.my/webfm_ send/44/1