4th Bi-Regional EU-SEA S&T Stakeholders Conference Hanoi, Vietnam 16-17 November 2011

1. 4th Bi-Regional EU-SEA S&T Stakeholders Conference Hanoi, Vietnam 16-17 November 2011 EU’s Ecological Footprint in Malaysia via Palm Oil Khalid Abdul Rahim-UPMAudrey Liwan-UNIMAS Institute of Agricultural and Food Policy Studies Universiti Putra Malaysia

2. Introduction Nomenclature Resource Accounting with Life Cycle Analysis Land and water areas areconverted into a normalized measure of land area called 'global hectares' (gha). 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

3. Introduction World Average Ecological Footprint, 2007 Global Footprint Network, 2010 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

4. EU and ASEAN Ecological Footprint EU Ecological Footprint, 2007 ASEAN Ecological Footprint, 2007 Global Footprint Network.xlsx 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

5. Malaysian Palm Oil Industry Structure Palm Oil Industry Structure.doc 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

6. EU’s palm oil footprint Footprint Table.docx 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

7. EU’s palm oil footprint 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

8. Top 5 EU Countries 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

9. Legislations to regulate the Malaysian Palm Oil industry -Land Acquisition Act 1960 -Land Conservation Act 1960 revised in 1989 -National Land Code 1965 -Protection of Wildlife Act 1972 -Environmental Quality Act 1974 (Environmental Quality) (Prescribed Premises) (Crude Palm Oil) Regulation 1977 -Environmental Quality (Clean Air) Regulation 1978 -Labor Law 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

10. Legislations to regulate the Malaysian Palm Oil industry(continued) -Workers’Minimum Standard of Housing & Amenities Act 1990 -Occupational Safety & Health Act 1977 -Pesticides Act 1974 (Pesticides Registration) Rules 1988 -Pesticides (Licensing for sale & storage) Rules 1988 -Pesticides (Labeling) Regulations 1984 -Factories & Machinery (Noise Exposure) Regulations 1989 -Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 1987 -The National Parks Act 1984 Malaysian

11. Environmental Policy ● National Policy on the Environment (NEP) - launched on October 2, 2002. ● The goal is to promote economic, social and cultural progress through an environmentally sound and sustainable development. ● Eight principles that harmonize economic development goals with the environment. National Environment Policy.docx Environment-Related Policies.doc 4th Bi-Regional EU-SEA S&T Stakeholders Conference, Hanoi, Vietnam, 16-17 November, 2011

12. Environment Related Policies Malaysia’s environment-related national policies are aimed at conserving Malaysia’s natural resources and to ensure that the resources are utilized in a sustainable manner for the continued progress and socio-economic development of the nation. Environment-Related Policies.doc

13. Policy Formulation i) The Sixth Malaysia Plan (1991-1995) adopted specific environmental and sustainable development goals ii) The Seventh Malaysia Plan (1996-2000) Plan of Action drawn to ensure long-term sustainability and improvement in the quality of life Focus on a framework for an integrated approach to development, enhancing the effectiveness of the regulatory and institutional framework. Recommended suitable mitigating measures, improving environmental education, communications and awareness, training programmes and incorporating environmental considerations in resource management and development planning

14. Policy Evolution To bring the law and other environmentally-related laws into effect, the laws and regulations, and rules and orders have been introduced and are strictly enforced by the Department of Environment. Environmental Laws and Regulations.doc Environmentally related legislations deal with specific environmental issues, including problems associated with industrial pollution. Existing environment-related legislations are enforced by various agencies under different Ministries Environment-Related Legislations.doc ♦ The Water Enactment (1920) which prohibits the disruption of rivers, such as by interfering with the flow of water or discharging specific substances detrimental to the beneficial uses of the river.

15. ♦ The Mining Acts (1929) which control discharges from mining activities into water courses. ♦ The Forest Enactment (1934) which provides for the establishment of forest reserves as well as control logging practices. ♦ The Land Conservation Act (1960) which helps to control soil erosion and siltation. ♦ The National Land Code (1965), which divides land use into three categories (namely, agriculture, building and industry), enables environmental factors to be taken into consideration in land use planning. ♦ The Factories and Machinery Act (1967) which deals with the working environment.

16. Regulatory-Policy Framework Strengthening The Government is determined to ensure that national development must proceed, the quality of the environment is maintained and/or enhanced where appropriate and practicable. The term “regulatory framework” refers to any national policy, legislation, five-year plans, or other related governmental initiatives.

17. Expressed in various policy statements and documents such as in the Third Malaysian Plan (TMP) (1976 -1980) "Environmental improvement and protection will receive the full attention of the Government in the planning and implementation of program in the TMP. It is vital that the objectives of development and environmental consideration be kept in balance so that the benefits of development are not negated by the costs of environmental damage"

18. 1974 Environmental Quality Act (EQA) was enacted - the first and the only legislation to protect environment. Eight Regulations were formulated under the Act. 1975 The Department of Environment was established - to administer the EQA. 1980-1997 Amendments - to formulate additional strategies in Environmental Management and its provisions are rather wide in scope.

19. The regulatory approach has been essentially command and control ("CAC")-based and these essentially consist of fees, fines and penalties. The industries are regulated under a system of licensing through prescription - subjected to the "polluter pays principle". Section 30B of the Act provides for specifying rules on "deposit and rebate schemes" and Section 33A provides for requiring industries to carry out environmental audits. However, no regulations implementing these two Sections have been formulated.

20. Performance of the Regulations The encouraging measure of success in reducing industrial pollution to manageable proportions, except in the case of SMEs, is largely due to: Pragmatic and systematic approach adopted by the Department of Environment coupled with an uncompromisingly firm (i.e. CAC), yet fair, attitude in enforcing the regulations (Khalid, 1996); Good working relationships developed over an extended period of time with the research and development institutions in Malaysia and universities along with a whole spectrum of private sector institutions, at federal and state levels;

21. Regular dialogue sessions and consultations held with the industrial sector (mostly larger industries) in the formulation and implementation of the regulations (a negotiated rule making approach); Good response and cooperation from and acceptance by the industries in general; Commitment of substantial outlays by various sectors of industry for funding socially acceptable solutions to environmental problems;

22. Successful breakthrough in the development of wastewater treatment technology suitable to the local situation and within the financial means of the industries involved; and Provision of adequate safeguards in the regulations to prevent unnecessary and unreasonable prosecution for non-compliance with the regulations .

23. International Environmental Agreements The relationship between environmental protection and international economic policy has been a stormy one, with conflicts surrounding international development efforts at all levels, the effects of structural adjustment programs and now trade policy - In 1996, the World Trade Organisation (WTO) discovered that virtually every activity undertaken by the WTO has potentially significant implications for sustainable development.

24. - Malaysia is party to international environmental agreements as following: ▪ Biodiversity ▪ Climate Change ▪ Climate Change-Kyoto Protocol ▪ Desertification ▪ Endangered Species ▪ Hazardous Wastes ▪ Law of the Sea ▪ Marine Life Conservation ▪ Ozone Layer Protection ▪ Ship Pollution ▪ Tropical Timber ▪ Wetlands

25. The Conservation and Environmental Management Division (CEMD) of the Ministry of Natural Resources and Environment is responsible for implementing regional and international linkage and cooperative efforts to combat pollution and conserve the environment. International conventions the division assumes responsibility are shown in International Environmental Agreements.doc

26. 3 departments the Division supervises directly 1. Department of Environment (DOE) 2. Department of Wildlife and National Parks (PERHILITAN); and 3. Malaysian Meteorological Service (MMS).

27. Some Success Stories Water Pollution: - Water pollution poses serious consequences in certain areas in Malaysia Under the River Water Quality Monitoring Programme, river basins were monitored The main pollutants were silt and organic wastes.

29. Lessons from Experience Active development strategies aimed at eradication of poverty and economic development can run parallel with, and complementary to, efforts to increase the quality of life through preventive environmental management. Sustainable development cannot be achieved—especially in the developing countries—without substantial economic growth and changed patterns of investment (Khalid, 1989). Economic development and environmental quality control can occur simultaneously without seriously affecting growth and trade. (Khalid, 1989). The trade effects of environmental control can be small and need not have serious economic consequences (Khalid, A.R. and J.B. Braden, 1993). Resources can be reallocated to next best alternative uses so that the welfare loss can be minimized.

30. The efficiency and efficacy of pollution control policies and programmes suited for each country can alleviate environmental problems associated with trade liberalization. Trade liberalization and sustainable development are not unavoidably incompatible. Trade liberalization can advance sustainable development goals, just as it can retard their achievement. The difference depends on how policies in the respective areas are crafted, and how negotiations in the respective areas are linked. The lack of linkage—or even sustained dialogue—between the different policy arenas has led to trade policies that inadequately support—and sometimes undermine—sustainable development. The small and medium scale enterprises (SME) are those which could be most vulnerable to environmental standards because their access to capital and technologies are limited.

31. Conclusion Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy Malaysia’s Gross Domestic Product (GDP) increased at an annual average rate of 6% in the 1980s and 4.5% from 2000 until 2011. Malaysia’s economic development had brought large improvements in those environmental problems. Agricultural activities and agro‑based industries were among the major sources of water pollution in the 1970s and early 1980s.

32. The Environmental Quality Act (EQA), were a reflection of the concerns and magnitude of the environmental problems that had emerged. Examples for cases of specific regulations include Crude Palm Oil (1977), Rubber (1978), Clean Air (1978) and Scheduled Wastes (1989).

33. Development objectives and environmental management have been integrated within the framework other government plans and policies. Second Outline Perspective Plan (OPP2) for the period 1991‑2000. "Vision 2020“ - transforming Malaysia into a developed country (not only economically, but also socially, politically and in other aspects) by the year 2020, simultaneously ensuring sustainability and improving the quality of life.

34. Recognizing the importance of integrating environmental issues in the overall framework of development, Malaysian National Policy on the Environment drafted out principles and strategies necessary to ensure that the environment remains productive, both ecologically and economically

35. Recommendation Resource Accounting with Life Cycle Analysis in major sectors of the economy is imperative. Agriculture Manufacturing Energy EU Ecological footprint in ASEAN countries Research Collaboration Studies by commodities, by sectors and by countries

36. Thank you