Climate Change Bill: What You Have To Know In 2 Minutes

Contributor

We progressively strive to be a world-class corporate and commercial law firm, providing integrated, innovative and comprehensive solutions globally by synergising human capital, technology and best practices. Our team is diverse, multi-lingual, internationally trained with a modern outlook and proactive approach. We also take pride in being one of the select few law firms of Malaysia to have an active Chinadesk managed by Mandarin proficient lawyers. Two decades of experience within the legal industry, a wide-network base and a diverse workforce, enables us to provide seamless delivery of services to our clients around the globe.

Explore Firm Details

The Ministry of Natural Resources and Environmental Sustainability (NRES) is currently seeking feedback on the proposed Climate Change Bill/Rang Undang-Undang Perubahan Iklim Negara (RUUPIN)...

Malaysia Environment

What is happening now: The Ministry of Natural Resources and Environmental Sustainability (NRES) is currently seeking feedback on the proposed Climate Change Bill/Rang Undang-Undang Perubahan Iklim Negara (RUUPIN), as outlined in the consultation paper issued on October 4th. Access the consultation paper here: https://t.ly/1UsCl.

Objective: The RUUPIN aims to establish a comprehensive legal framework for climate change in Malaysia. It will facilitate the transition to a low-carbon economy, strengthen climate resilience, establish a regulatory entity, institutionalise climate change governance, enable compliance mechanisms, and promote emission reduction.

Overview of the RUUPIN:

Part 1: Definitions

Provide clear definitions for greenhouse gases and related terms.
Ensure consistency with existing regulations.

Part 2: Setting of National Targets and Monitoring

Set national emissions reduction targets aligned with Nationally Determined Contribution (NDC) and Long-Term Low Emissions Development Strategies (LT-LEDS).
Monitor implementation of targets to ensure they are met.

Part 3: Establishment of Regulatory Entity

Establish a regulatory entity to administer the Climate Change Act.
Focus on implementation, enforcement, and stakeholder coordination.
Key functions include emission reduction mechanisms, data management, market-based initiatives, and climate promotion.

Part 4: Development of National Integrated Climate Data Repository (NICDR)

Establish a centralized system for climate data collection and reporting.
Store, analyse, and track climate data.
Mandate data submission from various sectors and states.

Part 5: Regulations of Carbon Trading Mechanism

Regulate carbon trading mechanisms, including international transfers and domestic emissions trading.
Establish a domestic emissions trading scheme with emission thresholds.
Develop criteria for participation in the Domestic Emissions Trading Scheme (ETS).

Establishing a National Registry for Climate Change

Establish a robust NRCC to facilitate participation in the global carbon market.
Prioritise development of Measurement, Reporting, Veriﬁcation (MRV) and Monitoring & Evaluation (M&E) systems to enhance transparency, efficiency, and trust.
Enable collaboration and potential linking with other market mechanisms.
Track and record issuance, trading, and retirement of carbon credits.

Part 6: National Climate Fund

Establish a fund to address the funding gap for climate change initiatives.
Source funds from various sources, including government budgets, fees, and international financing.
Use funds to support climate change actions, research, education, and awareness programs.
Contribute data to the Biennial Transparency Report.

Part 7: Reporting

Fulfill reporting obligations under the UNFCCC and Paris Agreement.
Establish reporting deadlines, methodologies, and standards.
Focus on GHG emissions, climate impacts, mitigation, and adaptation efforts.

Part 8: Compliance and Enforcement

Implement a compliance mechanism to ensure adherence to RUUPIN's objectives.
Focus on mandatory reporting, emissions trading scheme requirements, and other regulations.
Enforce compliance through incentives and penalties.

Part 9: General Provisions

Provide legal protection to enforcement units.
Require Public Prosecutor's approval for legal proceedings.
Enforce punitive measures against individuals and entities committing offenses.
Define the scope of liabilities for individuals, employees, and corporate entities.
Empower the minister to make regulations regarding penalties and other measures.

What will happen next: The Ministry is seeking feedback from stakeholders to refine the RUUPIN. All comments will be considered and the legislative details may be amended. Further engagements and a regulatory impact assessment will be conducted before the draft RUUPIN is submitted to the Attorney General's Chambers and then to Parliament.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Find out more and explore further thought leadership around Environmental Law