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September 2012

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MYCarbon Draft Framework Specification (v 1.0)

The draft programme framework specification comprises (i) General Information; (ii) Organisation Structure; and (iii) Implementation.

ORGANISATION STRUCTURE

Collaborating Partners Focal Point Steering Committee

GENERAL INFORMATION

Programme

Name

Programme

Objectives

Legal Basis &

Sector Focus

IMPLEMENTATION

Reporting Standard

Reporting Boundary Base Year

Reporting Frequency

Data Publication

Reward & Award Criteria & Threshold

Reporting Method

Reporting Basic Rules and

Requirement Support Measures

Report Verification

Training &

Guidance

Reduction Strategies

GHG to be reported

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(I) GENERAL INFORMATION

DESCRIPTION JUSTIFICATIONS / REMARKS

PROGRAMME NAME

• MYCarbon – A Corporate GHG

Accounting and Reporting Programme

for Malaysia.

• Programme Logo:

• MYCarbon carries the name pattern of

other Malaysian programmes;

• The nature of the programmes is easily

recognised from its name; and

• Carbon Disclosure Programme could

confuse the public because it carries the

same acronym with CDP (Carbon

Disclosure Project).

PROGRAMME OBJECTIVES

• MYCarbon aims to encourage corporate

and public organisations/entities to

report their GHG emissions.

• It provides standards and guidance to

ensure GHG reporting by organisations

are standardised and accepted

internationally.

• MYCarbon is in line with Government’s

commitment to reduce GHG emissions

from the country.

LEGAL BASIS AND SECTOR FOCUS

• Stage 1 of MYCarbon – Voluntary

reporting for companies/organisations

that meet the criteria and threshold.

• Level of emissions and energy usage to

be the key threshold criteria.

• MYCarbon starts off as voluntary

programme to attract participation from

companies/organisations; and

• Regulations will be required when it is mandatory.

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(II) ORGANISATIONAL STRUCTURE


STEERING COMMITTEE

• National Green Technology and Climate

Change Council (NGTCCC) chaired by

the PM as the highest authority over the

programme.

• Steering Committee for programme to

be established and set as a working

committee under the NGTCCC.

• High level involvement required as per

stakeholder input.

• Steering Committee to be new or

combined with GHG inventory working

committee.

• ToR to be developed.

FOCAL POINT

• Environmental Management and

Climate Change Division, NRE,

Malaysia.

• NRE is highly recommended by the

stakeholders because it is the national

focal point for climate change issues.

• ToR to be developed.

COLLABORATING PARTNERS

• Relevant public and private

organisations identified to support the

programme:

� KETHHA

� MGTC

� DoE

� SIRIM

� Other supporting agencies

suggested are MITI, MoT, etc.

� Business associations suggested

are Bursa Malaysia, ACCA, BCSD.

� NGOs suggested are MCCG,

MENGO

� International institute suggested is

WRI.

* Details of collaborating partners and

their roles will be further developed.

• Individual consultation meetings with

potential collaborating partners will be

conducted.

• Specific roles and responsibilities of

partners/supporting institutions will be

elaborated.

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(III) IMPLEMENTATION – REPORTING BASIC


REPORTING STANDARD

• GHG Protocol – A Corporate

Accounting and Reporting Standards

(as well as associated guidance) will be

adopted as the basis for reporting.

• ISO 14064 can be applied should

verification is desired.

• Localised guidance for Malaysia to be

developed.

• GHG Protocol standard is the most widely

used corporate GHG reporting standards

and it is free.

• ISO 14064 can also be applied because it

adopts the GHG Protocol standards as

well. When 3rd party verification is required,

it is suggested ISO14064 Part 1 and Part 3

to be applied under MYCarbon.

REPORTING FREQUENCY

• Annually. • Consistent with other corporate reporting.

BASE YEAR

• Reporting organisation to decide.

• Depends on data availability and

preference of reporting organisation to

track the emissions.

REPORTING METHOD

• Web-based submission • Web application to be developed.

PUBLICATION OF DATA (CONFIDENTIALITY)

• Corporate level report is required.

Activity level reporting is optional.

• Companies shall be given the option

for non-disclosure (to public).

• Detailed reporting (activity level) to be

made optional for disclosure.

• Consideration of the feedback from

stakeholders and also experiences from

other programmes overseas.

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(III) IMPLEMENTATION – RULES AND REQUIREMENT


CRITERIA AND THRESHOLD

• Business entities and Governmental

sectors which have met the reporting

threshold are encouraged to participate

in the programme.

• Refer to reporting threshold (Annex I).

• Reporting threshold to be based on

emission levels and energy consumption

levels.

GHG TO BE REPORTED

• Main GHGs under the Kyoto Protocol:

� Carbon dioxide (CO2)

� Methane (CH4)

� Nitrous oxide (N2O)

� Hydrofluorocarbons (HFCs)

� Perfluorocarbons (PFCs)

� Sulphur hexafluoride (SF6)

• Other GHGs under 2006 IPCC Guideline

shall be optional for inclusion. These

gases are:

� Nitrogen trifluoride (NF3)

� Trifluoromethyl sulphur pentafluoride

(SF5CF3)

� Halogenated ethers

� Other halocarbons

ORGANISATION BOUNDARY

• Operational control will be the main

requirement.

• Equity control will serve as an alternative

option.

• Operational control is required because

the potential of controlling and reducing

GHG can be more realistic through

activity control.

OPERATIONAL BOUNDARY

Scope Type of Emissions

Reporting

Scope 1

Direct Mandatory

Scope 2

Purchase Energy

Mandatory

Scope 3

All other indirect Optional

• Scope 3 emissions to be voluntary at start

of the programme. Nonetheless, it shall

be encouraged.

• Sectors with particularly high Scope 3

emissions shall be prioritised.

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REPORT VERIFICATION

• 3rd party verification is encouraged but

not required at Stage 1 of

implementation.

• Reporting entities with verifications will

be recognised by the grading of report:

GHG Reporting Class

Scope of GHG Reporting and Verification

A-Platinum

� Covers all Scopes (1, 2 & 3).

� 3rd party verification or quality assurance.

� Inclusion of reduction target, strategies and action plan.

B-Gold � Covers minimum Scopes (1, 2 & 3).

� Self-quality assurance or control in place.


C-Silver � Minimum reporting to cover Scope 1 & 2 emissions.





• The classification of reporting companies

into 3 levels are based on the

completeness and credibility of the

reporting.

REDUCTION STRATEGIES

• Reduction targets, strategies and action

plans to be included and monitored. No

penalty/obligations to meet targets at

stage 1.

• Tracking of GHG reduction performance

will provide good basis for future MRV

and Government’s monitoring on these

initiatives.

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(III) IMPLEMENTATION – SUPPORT MEASURES (SUBJECTED TO

APPROVAL)


REWARD AND AWARD

• Tax incentives for cost incurred for GHG

accounting and reporting (subjected to

approval) (refer to Annex 2).

• Best GHG Reporter Award – with high

level recognition and media coverage.




TRAINING AND GUIDANCE

• Training and guidance to be provided to

early-birds.




Should you have any questions, comments / inputs, feel free to contact:

Eco-Ideal Consulting Sdn. Bhd. (Co. No: 622103-X) KL Office:

Suite C-7-2, Wisma Goshen, Plaza Pantai Jalan 4/83A Off Jalan Pantai Baharu 59200 Kuala Lumpur. Tel: 60-3-22848102 Fax: 60-3-22848103

Sarawak Office:

1st Floor, Lot 378, Jalan Nanas

93250 Kuching, Sarawak. Tel: 60-82-242887 Fax: 60-82-244887

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www.ecoideal.com.my

ANNEX 1

CRITERIA AND THRESHOLD (DRAFT)

Note:

For energy, the threshold is applicable to either of the Grid/Off-grid sub-type. Should either

of the two exceed the threshold, then the company is eligible.

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ANNEX 2

PROPOSED GRADING SYSTEM AND INCENTIVES

Proposed Incentives for Discussion

The proposed incentives (2013-2014), based on the inputs from the stakeholder

consultation workshop held on 12 July 2012 is presented and elaborated below:

GHG Reporting Class

Scope of GHG Reporting and

Verification

Tax incentives on GHG

reporting

Tax incentives on verifications

Conditions

A – Platinum

• Covers all Scopes (1, 2& 3).

• 3rd party verified/QA.

• Include reduction target, strategies and action plan.

Double deduction equivalent to 100% of 3rd party expenditure incurred to accounting and reporting GHG emissions. (see conditions)

Double deduction equivalent to 100% of expenditure incurred on engaging 3rd party to undertake verification/certification of the GHG reporting.

Engaged 3rd party consultants and verifier/certifier must be registered with Ministry of NRE.

B – Gold • Covers minimum Scopes (1,2&3).

• Self-quality assurance/control in place.


Double deduction equivalent to 100% of of 3rd party expenditure incurred to accounting and reporting GHG emissions. (see conditions)

Not applicable. Engaged consultants and verifier/certifier must be registered with Ministry of NRE.

C - Silver • Minimum to cover Scope 1&2 emissions.


Single deduction equivalent to 100% of of 3rd party expenditure incurred to accounting and reporting GHG emissions. (see conditions)

Not applicable. Engaged consultants and verifier/certifier must be registered with Ministry of NRE.

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