Malaysia comprehensive development partnership : environment report on completion of activities

 68960 Malaysia Comprehensive Development Partnership - Environment Report on completion of activities 1. The Malaysia Comprehensive Development Partnership – Environment (CDP-E) program was established as a Technical Assistance (P091605) activity in August 2004. This report summarizes developments around the program over the last eighteen months, deliverables planned, and outcomes achieved. It also lays down a tentative road map for future collaboration with counterparts in Malaysia. Background 2. Following a dialogue initiated earlier in the year during an EAP management visit to Kuala Lumpur, a Bank Environment team visited Kuala Lumpur from July 14 to 16, 2004 with a view to establishing an Environment agenda for a possible Malaysia-World Bank Knowledge Partnership Program1. The team held discussions with the Economic Planning Unit (EPU), Prime Minister’s Department, and the Conservation and Environment Management Division of the newly created Ministry of Natural Resources and Environment (MONRE). The AIS for the Malaysia CDP-E was established in August 2004. In the following months (coinciding with visits to Malaysia for supervision of the Malaysia ODS project) a further meeting was held with the EPU in June 2005, and it was agreed that the best opportunities for traction on this dialogue would be with organizations representing business interests, and that a focus on carbon finance (CF) and on corporate social and environmental responsibility (CESR) was appropriate. Other discussions such as Sustainable Development Indicators and a small grants program were pursued, but did not develop. 3. Through this period, a dialogue was also maintained, at the suggestion of the External relations unit of MONRE, with the Business Council for Sustainable Development, Malaysia2. This was later extended to include the Malaysia International Chambers of Commerce and Industry (MICCI). The initial proposal was to develop areas of mutual interest, including on the applicability of the Equator Principles in Malaysia and the potential for CF in Malaysia, and it was hoped that the bank could participate in organizing a CEOs’ Conference on Sustainable Development. This was first targeted for July 2005, in conjunction with the Malaysia Environment Week celebrations, and later for December 2005, in conjunction with the Hibiscus Awards ceremony. The Prime Minister of Malaysia was expected to participate in both of the above-mentioned functions. These were seen as interesting proposals that could form the basis of a visible and useful engagement in 2005. 4. After the December 2005 event was postponed at BCSDM’s request, it became necessary to break down the agenda into two separate events, a CF workshop for MICCI 1 This was planned to be developed on lines similar to the Country Development Partnership for Environment for Thailand, and was approved with a small BB allocation as an FY-05 enabling activity by the CMU. 2 See the team’s report at Annex I. and a CESR workshop for BCSDM. Given the very limited BB available for this program, it was planned to deliver the whole activity as a low-key but very pointed set of interventions. Events were built around other staff travel to minimize expenses while delivering to the counterparts a meaningful program that had potential for replication and would provide the basis for further engagement. This has worked very effectively. I. MICCI Workshop on the Kyoto Protocol and the Emerging Carbon market, December 13, 2005, Kuala Lumpur 5. This was previously reported to management on December 14, 2005. MICCI is one of the oldest business organizations in the region, having been founded in 1837, and has more than 1,000 companies enlisted as members. It has several standing committees on various subjects; the Environment Standing Committee is actively trying to promote awareness on climate change within the industry, and this workshop was one such initiative. They are also keen to understand the options for business, and to understand how real the market has become. 6. I invited Lasse Ringius (ENVCF) to participate, and we conducted a workshop for MICCI on “the Kyoto Protocol and the Emerging Carbon market