How To Claim And Trade Carbon Credits

March 9, 2023
Introduction Undeniably, there has been an increase on the level of awareness on how greenhouse gases (“GHG”) emission has significantly affect the world every year. For companies, CSR campaigns were undertaken where pledges were made to help reduce and potentially prevent climate change by taking the initiative to reduce their GHG emission and setting the goal to achieve net zero carbon emission by 2050. Companies such as Petronas declared their Aspiration to achieve net zero carbon emission by 2050.1 One of the potential ways to achieve this net zero emission goal is through the carbon credit market. Carbon credit also gained the attention in ESG investing which contributes to the reduction of carbon.2 This article will focus on explaining how carbon credits work and how it will help to achieve the net zero emission goal. Most importantly, this article will explain how carbon credits can be claimed and traded followed by a further discussion on the initiative taken by Malaysia in promoting the carbon credit market. What are Carbon Credits Carbon credits are certificates or permits that allow the owner to emit a certain amount of carbon dioxide or other GHG3 over a certain period time4. 1 credit permits the emission of 1-ton of carbon dioxide or its equivalent in other GHG.5 Carbon credits are tradeable and only exist in jurisdictions that are governed by a “Cap-and-Trade” system.6 Countries or regions that have already implemented the cap-and-trade system includes the European Union (“EU”), Australia, New Zealand, South Korea, California and Quebec.7 The purpose of carbon credits is to overall lower the amount of GHG released by the buyers. This allows companies and individuals to account...

The Use of Hydrogen in the Energy System in Malaysia and the Relevant Laws and Regulations

March 9, 2023
With the global concern on Climate Change and the need to reduce the use of fossil fuels such as oil and gas as the source of energy because of its negative impact towards the environment, there is a need to move towards renewable energies and more environmentally friendly fuels. One form of energy which is being advocated is Hydrogen. Based on the source and production process, Hydrogen is commonly classified today in three categories – Grey Hydrogen, Blue Hydrogen and Green Hydrogen. Grey Hydrogen is sourced from natural gas and is produced by a method called steam methane reforming which emits large amounts of carbon dioxide. Blue Hydrogen is produced the same way as Grey Hydrogen but the carbon dioxide is captured and stored under the Carbon Capture Utilisation and Storage (“CCUS”) methodology. Lastly, Green Hydrogen is produced by the electrolysis of water which splits water molecules into oxygen and Hydrogen using renewable energy such as solar energy, wind energy and hydroelectric energy1. Hydrogen in Malaysia  In 2001, Malaysia identified Hydrogen fuel cells as a priority research area and R&D funds were allocated. A Hydrogen road map was formulated in 2006 and a blueprint for fuel cell industries in Malaysia was published in 20172. PETRONAS has conducted studies with academic institutions on the production of Hydrogen from biomass waste3 and from water through electrolysis which resulted in the development of the PETRONAS Advanced Proton Exchange Membrane (PEM) Electrolyser4. PETRONAS has also collaborated with commercial entities such as ENEOS Corporation (ENEOS) on Hydrogen production and its transportation in methylcyclohexane (MCH) form and IHI Corporation and TNB Genko on Hydrogen and Ammonia...

Circular Economy in Malaysia

March 9, 2023
Circular Economy And How It Works  Circular economy (‘CE’) is one of the solutions to climate change, biodiversity loss, waste, and pollution.1 It is a resilient system that is good for business, the environment and mankind as it decouples economic activity from the consumption of finite resources.2 CE is based on three principles, eliminate waste and pollution, circulate products and materials and regenerate nature.3 Similar to recycling, the CE also has its cycles to achieve the three principles. There are two main cycles, the technical cycle, and the biological cycle.4 The technical cycle is when products are kept in circulation in the economy by way of reuse, repair, remanufacture and recycling.5 Biological cycle is when the nutrients from biodegradable materials are returned to Earth through composting or anaerobic digestion.6 In short, CE is recycling so no materials go to waste. The Need For Circular Economy The concept of CE speaks for itself. With the rapid growth in popularity and increased demand for raw materials, there is an urgent need to prevent further damage to the planet and ultimately aim to restore our planet. Additionally, with finite supplies means that countries are dependent on others in the importation of raw materials.7 Focusing on the live and pressing issue in Malaysia, ever since China banned plastic imports at the start of 2018, Malaysia has become the world’s top destination for global plastic waste for recycling.8 Additionally, there is also the bulk stems from domestic consumption of single-use plastics.9 In fact, Malaysia is one of the fastest-growing and developing countries even with the impact caused by the Covid-19 pandemic.10 Naturally, such rapid development of manufacturing industries will cause pollution and...

Q&A with Ira Eddymurthy of SSEK as They Celebrate 30 Years of Operation

March 9, 2023
From participation in groundbreaking commercial law reform and beyond, this Indonesian law firm is just getting started Can you please provide us with a short highlights reel of SSEK’s first three decades of operation? Ira Eddymurthy: SSEK was established in 1992 with only five people and over the last 30 years we have grown to a family of more than 130 people. From our earliest days, SSEK has been involved in vital projects and initiatives in Indonesia, as the firm has put its experience and expertise at the service of helping the country grow into an economic powerhouse. SSEK’s senior lawyers played vital roles in the Economic Law and Improved Procurement Systems (ELIPS) Project, Indonesia’s commercial law reform project from 1992-1998, at the time the largest single-country effort of its kind in the world. They helped to draft, finalise, and socialise several laws, including Indonesia’s Company Law and Fiducia Law. During the 1997 Asian economic crisis, we participated in Indonesia’s Initiative Group and contributed ideas on ways to deal with unsettled debt, an effort that resulted in, among other achievements, Indonesia’s new Bankruptcy Law. SSEK, acting as Indonesian counsel to state electricity company PLN, advised on a groundbreaking power project in Central Java designed by the International Finance Corporation and intended as a model for future projects in Indonesia. More recently, we advised the Indonesian Ministry of State-Owned Enterprises and PT Pertamina on the formation of Indonesia’s largest state-owned holding company, the Oil and Gas Holding SOE. SSEK has been named Indonesia Law Firm of the Year numerous times by legal directories, we have won multiple Deal of the Year...

Guideline on New Anti-money Laundering Law in Vietnam

March 8, 2023
While Vietnam remains a predominantly cash-based economy, its legal frame work on anti-money laundering, according to the Asian Pacific Group on Money Laundering (APG)’s assessment in its Mutual Evaluation Report dated January 2022, is still incomprehensive and limited, which makes the country itself vulnerable to risks of money laundering. Pursuant to the report on national risk assessment on money laundering and terrorism financing conducted by the Vietnamese authority for the period of 2012-2017, the risk of money laundering in Vietnam is assessed at “medium high” (trung bình cao). Of which, while banking and underground remittance are the sectors where the money-laundering risks are assessed at “high” (cao) level, corruption and gambling are the crimes identified to have high money-laundering risks. In an effort to mitigate money-laundering risks and further enhance the country’s capacity against money laundering, on 5 August 2022, the Vietnam Prime Minister issued Decision No. 941/QD-TTg on the national action plan on anti-money laundering, terrorism financing, and financing for proliferation of mass-destruction weapons. Based upon this plan, the Vietnam National Assembly adopted the Law on Anti-money Laundering (Law No. 14/2022/QH15) dated 15 November 2022 (“New AML Law”). The New AML Law takes effect from 01 March 2023 and replaces the Law on Anti-money Laundering 2012 (the “ 2012 AML Law”). The guideline below is mainly aimed to provide readers with an overview of Vietnam’s regulation on anti-money laundering and salient points of the New AML Law in comparison with the old one. 1. What is money laundering? The New AML Law defines “money laundering” as an act of an individual or an organization to legitimize the origin of...

Vietnam Labour and Employment Comparative Guide

March 8, 2023
1 Legal framework 1.1 Are there statutory sources of labour and employment law? The primary statutory source that governs labour and employment is the 2019 Labour Code. Other domestic sources include: the 2013 Law on Employment; the 2014 Law on Social Insurance; the 2015 Law on Occupational Safety and Health; the 2014 Law on Vocational Education; and the 2012 Law on Trade Unions. In addition, the governmental decrees and documents issued by the Ministry of Labour – Invalids and Social Affairs governing labour and employment are as follows: Decree 145/2020/ND-CP dated 14 December 2020 detailing and guiding the implementation of several articles of the Labour Code regarding working conditions and industrial relations; Decree 152/2020/ND-CP dated 30 December 2020 on foreign workers in Vietnam and recruitment and management of Vietnamese workers working for foreign organisations and individuals in Vietnam; Decree 38/2022/ND-CP dated 12 June 2022 prescribing region-based minimum salary levels applicable to employees working under labour contracts; Decree 135/2020/ND-CP dated 18 November 2020 prescribing retirement ages; Decree 12/2022/ND-CP dated 17 January 2022 providing penalties for administrative violations in the fields of labour, social insurance and overseas workforce supply under contract; Ministry of Labour – Invalids and Social Affairs Circular 10/2020/TT-BLDTBXH dated 12 November 2020 detailing and guiding the implementation of several articles of the Labour Code regarding the contents of a labour contract, collective bargaining councils and occupations and jobs that are harmful to reproduction and parenting functions; and Ministry of Labour – Invalids and Social Affairs Circular 09/2020/TT-BLDTBXH dated 12 November 2020 detailing and guiding the implementation of several articles of the Labour Code regarding minor workers. The 2019...