Categories
ASEAN Environment

[1069] Of a non-binding energy treaty

In the recent ASEAN Summit, member states agreed to a pact that calls for alternatives to fossil fuel:

CEBU, Philippines: Leaders from 16 Asian nations signed an energy security accord Monday that they said would reduce the region’s dependence on fossil fuels and promote the use of alternative energy sources.

Briefly mentioned was the reduction of carbon emission:

The Cebu Declaration on East Asian Energy Security, announced Monday, set a wide range of goals, including a promise to “mitigate greenhouse gas emissions through effective policies and measures.”

Those alternatives seem to mainly include biofuel and nuclear energy. Unfortunately, the pact, much like other ASEAN-initiated treaties, is practically unbinding:

The same scepticism holds good for other agreements reached at the latest summit: one to improve the rights of the millions who move between ASEAN countries seeking work; another to improve co-operation against terrorism; and a third, signed with other East Asian powers, to cut greenhouse-gas emissions and promote renewable energy supplies.

Read the fine print and you will find few significant commitments, let alone concrete targets. ASEAN leaders like the rhetoric of union but not the obligations of it.

The new energy pact is of course a step into the right direction, just like the u-turn made by Bush weeks after the ASEAN Summit. It signals the growing realization in Southeast Asia that we need to do something with our dependency on fossil fuel. Regardless whether climate change is part of the realization, the reduction in carbon emissions which is part of the target is definitely a welcoming target.

Even before the energy pact was signed in Cebu, the Phillipines, member states Malaysia and Indonesia were gearing for biofuel. Almost outrageous plans on both sides of the Malay Archipelago were buzzing. One of them included a mega palm oil plantation on Indonesian Borneo. The plan has since been defeated after protests from environmentalists:

WWF successfully defeated a proposal for the world’s largest oil palm plantation, which threatened to destroy the last remaining intact forests of Borneo.

In Malaysia, a compulsory mixed of biofuel into civilian ground vehicle-worthy gasoline will be enforced in the near future:

Malaysia has announced plans to switch from using diesel oil to a part bio-fuel alternative.

Commodities Minister Peter Chin said laws were being drafted to make the use of such fuel compulsory by 2008.

Negotiations have begun with petroleum companies, to persuade them to produce fuel using both mineral and vegetable oils, the government has revealed.

The government favours fuel from 19 parts diesel to one part palm oil, and says engines do not need modification.

Similar measure is being implemented in the Philippines:

San Fernando City, La Union (15 January) — With the signing of the Biofuels Act into law by President Gloria Macapagal Arroyo, will pave the way for the Philippines to become self-reliant on energy.

According to the Act, the law will promote the use of alternative, renewable energies such as compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and any liquid at least 85% of the volume of which consists of methanol, ethanol, or methyl ester such as coco-biodiesel.

Apart from biofuel, Indonesia is planning to construct four new nuclear power plants:

The Indonesian government has proposed building four nuclear plants at the foot of a 1,600-metre dormant volcano in central Java as part of a long-term plan to meet its energy needs.

The four reactors will cover the size of about 600 football fields near the farming village of Balong, to be built in stages over 10 years.

While the government is enthusiastic about commissioning the first plant by 2015, many are concerned about the proposed site in the shadows of Mount Muria, which has been dormant for 3,000 years.

Malaysia is also mulling the idea of nuclear power plant though nothing definite has been brought to the table yet. Instead, for better or for worse, hydro power is seen as a major source of electricity for years to come.

While the two alternatives diversify the countries’ — as well as ASEAN’s if the pact is adhered at all — energy sources, there are issues related to them.

The expansion of palm oil will eventually bring about deforestation. While biofuel is carbon-neutral, deforestation is not. In fact, Brazil is one of world’s major emitters of carbon due simply to the current massive deforestation of the Amazon. In combat climate change, the expansion of palm oil plantation for the purpose of biofuel production provides a dilemma for policymakers, if not downright paradox.

In contrast to all other energy sources, nuclear produces almost no carbon emission and does not involve deforestation the way biofuel or even hydroelectric dam requires. It is perhaps the ultimate answer to the problem of climate change. Of course, radioactive waste is a major issue that blunts environmental appeal of nuclear power.

While I prefer the pact to stress more on green renewables energy such as wind and solar, the greatest failing is not the exclusion of green renewable energy. The greatest disappointment really is the non-binding nature of the agreement.

What is the point of signing a non-binding agreement?

Categories
ASEAN Sports

[1067] Of good luck, negaraku

All the best to the Malaysian national team. You guys did good the last time. Make it better this time.

I would have gone to Singapore today but the Cameron Highlands trip was a little bit too exhausting for me. Worry not though for my heart and mind are there with you.

Go get ’em Tigers.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
p/s — GOAL! GOAL! GOAL! GOAL FOR MALAYSIA!
Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
pp/s — it is full time and it is a draw, 1-1. Extra time is up soon.
Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
ppp/s — it all came down to penalty shootouts. It is a loss for Malaysia unfortunately. Good game nevertheless.

Categories
ASEAN Sports

[1062] Of Tigers and Lions

The ASEAN Championship match between Malaysia and Singapore was a match that I eagerly anticipated. Despite that, I only managed to catch the second half. Yesterday had been a busy day; one Board of Directors meeting and then my CEO’s birthday on the same day. Busy but fun. Well, not quite busy but whatever. I caught the first half review nevertheless. The second half was entertaining but the result — one all — is tremendously disappointing.

Pardon me for being a pessimist or an unpatriotic bastard but I did not place too much hope on the national team; the team’s past performance is not convincing. Upon watching the half time review though, I was surprised to find out that Malaysia was dominating the game. I am unsure if it was the case of Malaysia performing well or Singapore waking up with a fever but Malaysia was dominating nonetheless.

The scoreline at halftime was zero all.

The second half time proved explosive.

Malaysia continued to dominated and the deadlock was finally broken when a Malaysian player by the name of Hardi scored. It was a fantastic, beautiful, surprising, superb goal. The curve of the ball path and the distance the ball travelled make the goal all the more astounding. It is not everyday I could witness a goal like that – not from the Malaysian team. With that goal, Malaysia took the lead. A glorious lead befitting a glorious goal.

I was watching the game quietly right up until the goal. The goal animated me. I was clapping, shouting and my blood was circulating greatly that I thought I was having a heart attack!

It was a fantastic feeling that I do not think I remember having since the Michigan-Michigan State match at the Big House. It was ecstasy. What was better, Malaysia continued to harass the Singaporean that it seems that it was Malaysia up against Brunei or some other lesser regional team.

The way the game was going, a Malay would say, “harapan menggunung tinggi melangit.” Well, I am unsure what a Malay would say really but the phrase seems catchy.

With surging expectation going beyond rationality, Singaporean equalizer struck a mighty blow. I do not think the goal should have gone in. After all the spectacle, the goal went in too easy. But I am speaking as a couch potato. And I think Shebby spoke too much.

Malaysia continued attacking nevertheless. It was amazing how the players kept on fight. They realized that the game had not ended yet and certainly were not ready to throw in the towel yet. Why should they?

They were highly spirited. I had not seen that in the national team for a very long time. It was a contagious feeling and I was shouting at the top of my lungs.

As anger and frustration was mounting, I tried to pick fault with all the Singaporean players. Especially the Singaporean player Precious – an African giant – audaciously pushed a Malaysia player for the ball. He was given a yellow card but the referee should have given that guy a red. And, the red card for the Singaporean captain was freaking marvelous.

And then I thought, damn, how many imported players does the Singaporean team have? Two, Three? Five!

Whatever it might be, the game was great. I wish the Tigers all the best. Let us beat the Lions in their own den!

Categories
ASEAN

[1048] Of Australia to apply into ASEAN

Years ago, Israel expressed its desire to join the European Union. I was skeptical of it back then because of one reason: geography. Now, I am expressing similar skepticism on Australian intention to join ASEAN. According to Bloomberg:

Australian Prime Minister John Howard and Trade Minister Warren Truss will attend the second East Asia meeting on Jan. 15. along with leaders from the 10-member Association of South East Asian Nations plus Japan, China, India, South Korea and New Zealand. Australia will also push its application for permanent membership in Asean, analysts said.

Just like how Israel is not geographically Europe, Australia is not part of Southeast Asia.

This does not mean that I do not favor closer integration among nations of the world or within this context, between ASEAN and Australia. I am all for it. I would be delighted if free flow of labor and capital through the borders of ASEAN and Australia were guaranteed. Further, I do not deny that ASEAN and Australia share a number of similar concerns that demand close cooperation.

Yet, having Australia as a member state questions the basis of ASEAN: what is the basis of ASEAN?

I consider ASEAN as a regional grouping. As the name suggests, the region refers to Southeast Asia.

If ASEAN is to grant Australia membership, I do not see why it should stop with just Australia. China, South Korea and Japan should be part of ASEAN. Maybe, even India too. Hence, where would it end?

The admission of these states into ASEAN would possibly dilute the influence the original ten member states. I am sure these current extra-ASEAN states have their own unique interests and they could bring up those issues that at the expense of ours. Take what had happened at APEC for example: because of President Bush’s political goal, terrorism became the focus of APEC despite the fact that APEC was established as a trade forum. The trend was only reversed after several East Asian countries as well as those from Southeast Asia took a stand and said no to the US, saying that APEC is a trade forum, not security.

Furthermore, ASEAN is drafting its charter. The matter of accession will distract ASEAN from the exercise. If we as ASEAN are to admit Australia into the club, or even debate on it, let us do it after the ratification of the charter.

Therefore, I am currently in the position that Australia should remain in the next best thing: the East Asia Summit. I am saying no to Australia, for now.

Categories
ASEAN Economics

[994] Of ASEAN-India FTA is not looking good

Exactly a year ago, I caught a piece of news on a proposed ASEAN-India free trade agreement. ASEAN however rejected the Indian initial offer because India wanted too many items that fuel ASEAN economy excluded from the FTA. By July 2006, the talk was suspended by ASEAN because the Indian list — down to 850 as of July 2006 from 1400 items as of December 2005 — was still too long:

KUALA LUMPUR, JULY 25: The Association of Southeast Asian Nations (Asean) has suspended free-trade talks with India because of New Delhi’s reluctance to open its markets, Malaysia’s trade and industry minister said on Tuesday.

By August 2006, the Indian list was reduced to 560 items. The lists were supposed to be finalized in June 2005 while the FTA itself was expected to come into force by January 2007.

The latest development on the FTA this month reveals that negotiation doesn’t look too good:

NEW DELHI, NOV 30: Asean has given a jolt to India by deciding to almost double its negative list for the proposed free trade agreement (FTA) with India.

“The negative list which they gave us in August was 2,700 which, after subtracting the overlapping items in the country-specific list, came to a consolidated figure of 600. But on November 17, they came up with a revised list of 6,900 which amounts to a consolidated list of 1,000 plus,” commerce secretary GK Pillai told media on the sidelines of the International Chamber of Commerce of the World Council Meeting here on Thursday.

I’m unsure what ASEAN is trying to do by increasing the size of its list but the increase is unfair to India, especially when the India has been trying hard to reduce the list length, though admittedly, I myself prefer to see a much shorter Indian list; I prefer a more liberal market for both sides with almost no exclusion list at all. But when the Indian proposes something like:

Ramesh [Indian Minister of State for Commerce] added that India will not compromise the interests of its farmers by pruning the list. India’s negative list of 560 does not include palm oil, pepper and black tea on which the country has proposed to gradually bring down duties to 50 percent.

I think we shouldn’t call this agreement as an FTA. A 50%-tariff is still way too high, no matter what the initial level is. Perhaps, the reason why ASEAN increases the length of its list is due to frustration. I’d be frustrated too if I were in the negotiation, looking at a “liberalized” market with a 50%-tariff staring back at me.

This latest development looks very different from the optimism we all saw back in early 2005:

KUALA LUMPUR, Mar 28 2005 India and Malaysia are on the verge of signing a comprehensive economic co-operation agreement by year-end. It will include free trade between the two nations.

The signing may be done during a visit by Indian Prime Minister Dr Manmohan Singh to Malaysia in December.

Indian High Commissioner to Malaysia R.L. Narayan said both sides had worked hard on the matter following Prime Minister Datuk Seri Abdullah Ahmad Badawi’s visit to India last December.

In the past three months, they have charted a “road map” of the broad parameters of the agreement.

Let’s hope the negotiation won’t end here because prosperity comes from trade, not isolation.

Apart from India, Malaysia, as far as I know — on its own or as part of ASEAN — is in FTA negotiation with Australia, Chile, Pakistan, People’s Republic of China, South Korea and the United States. There’s rumor of a Malaysia-Canada FTA but Canadian officials have ruled them out, at least from the next one or two years.