Measures on Energy Conservation and Environmental Protection

Myanmar has already formulated and adopted Myanmar Agenda 21, with the general aim of facilitating the integration of environmental and sustainable development consideration in the daily activities and decisions of individuals, households, communities, corporations and Governmental agencies. The specific aim to facilitate the incorporation of environmental and sustainable development policy considerations into decision making and policy formulation process.

Myanmar Forest Policy emphasized among others to strive for sustainable production and at the same time restoring the environmental balance and meeting the rural needs. Therefore, Reforestation programme are extensively undertaken in most effected parts of the country, especially in Central Myanmar Area.

In order to reduce pressure on fuelwood cuttings in the forest areas, fuelwood plantations have been established in both State and Public Community Sectors. In State sector, during 1980s, fuelwood plantations accounted for 22 percent of total planted whereas during 1999, it increases to 28 percent. In Public sector, some 20,000 hectares of fuelwood plantations have already been established during 1999 - 20000 as Community Forests.

Also, as a measure to reduce cutting of fuelwood, efficient cook stoves, substitute fuelsticks and briquettes utilizing coal and petroleum coke and biodigesters are encouraged and promoted in most parts of the country. It is forecasted that increase use of improved cook stoves and substitute fuelsticks and briquettes will decrease the dependence of fuelwood by 46 percent in the next 30 years time.

Ministry of Energy, as one of its policy measure, has been making efforts to expand the utilization of Liquefied Petroleum Gas ("LPG") as household fuel. LPG production in Myanmar is presently about 16,000 metric ton per year, out of which 45 percent is utilized as household fuel. Currently, private sector has been introducing diesel stoves at fairly competitive prices, The efficiency of diesel stoves is such that it could have a very favourable economic edge over other household fuels including fuelwood. Use of natural gas as household fuel has already been introduced in most of the areas near the Oil and Gas Fields of the country. Widespread application to cities and communities may still have to wait until a comprehensive city gas projects are implemented.

Energy Efficiency and Conservation ("EEC") awareness is presently not very high in Myanmar, due to subsidized energy pricing system. Energy cost awareness is the most important issue in EEC as it is essential for everyone from management level down to operators need to be aware of energy cost impact and make every effort in order to have energy conservation.

As Myanmar is an agriculture country, the level of emission of Green House Gas ("GHG") is rather low compared to other countries of the region. Change in the pattern of land utilization and forests of the country significantly absorbed of the emitted gas and the net emission is only in the order of 41,500 kiloton of Carbon Dioxide equivalent during 1990.

Emission by types of GHG in Kiloton (1990)

At present, the forest coverage in Myanmar is 50.8% of the total land territory and can still enjoy a reasonable environmental comfort. Under the plan laid down by the Ministry of Forestry, the afforestation programme has been going on extensively throughout the country and the areal coverage of the guarded forest will be increased by 30 percent of the total land area in the future.

According to Myanmar National GHG Inventory, Energy sector contributed 12.64 percent of the total emission. The highest is the Agriculture sector which has 81.41 percent and the lowest in the Industry sector which has 0.37 percent. The rest, 5.58 percent, is the emission from Waste sector.

Clean Development Mechanism ("CDM")

As a measure to control environmental pollution from emission of GHG from plants under the Ministry of Energy, Efficient Energy Utilization has been implemented in cooperation with Cosmo Engineering Co., Ltd., Cosmo Oil Co., Ltd., Nichimen Corporation and Mitsubishi Research Institute of Japan. It is aimed for Anti Global Warming under a programme by Japanese Ministry of Trade and Industry ("MITI") and New Energy and Industrial Technology Development Organization ("NEDO") of Japan. Feasibility Study was made at Thanlyin Refinery to reduce GHG in an economical way.