Study on Environmental Charges for Contravention of Air Emissions

In late 2021, AGV was appointed by the Malaysia Department of Environment (DOE) to conduct a study on the environmental charges or fees to be imposed for industries that contravene the air pollutant emission limits set in the Environmental Quality (Clean Air) Order 2014. Industries were given 5 years grace period and expected to comply with guidelines and limits stipulated. Since 2019, DOE received many applications to contravene the emission limits and hence necessitated this study to determine the environmental charges to be imposed. Major industries such as petrochemical, oil & gas, power plants, palm oil industry and timber based industry were the main applicants for contravention licence.

The scope of work involved conducting survey of stakeholders (industries, air pollution control system providers and laboratories), developing a method to calculate the environmental charges and providing input for the drafting of amendment to CAR 2014. A total of 230 respondents to the survey were obtained, several stakeholders engagement sessions were held and a workshop to brief the stakeholders on the findings and recommendations of the study was conducted which was attended by 194 participants.

The main challenge faced by AGV’s team of consultants was completing the wide scope of the study within the shortened timeframe of 3 months (instead of 5 months). Despite the challenges, the study was successfully put together and submitted on time and accepted by the DOE.