KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) has launched the Circular Economy Policy Framework with the aim of reformulating fossil-fuel-based industrial models and catalysing green growth practices across the manufacturing value chain.
Its minister, Tengku Datuk Seri Zafrul Abdul Aziz, said the framework outlines extended producer responsibility (EPR) as a key strategy to ensure that local producers take responsibility for the entire life cycle of their products until their eventual disposal.
"The aim of EPR is not to penalise producers, but for them to incorporate the costs of environmental management within the production process, incentivising more sustainable practices along the way.
"In achieving circularity, MITI would like to urge all industries and manufacturers to rethink their operations and adopt more innovative approaches to be part of the circular economy ecosystem," he said when launching the framework at the second Petrochemicals Sustainability Conference here, today (Sept 26).
According to Tengku Zafrul, the framework is critical for two main reasons: firstly, to elevate the sector's contribution to the Gross Domestic Product (GDP) from its current baseline of 24 per cent but via more sustainable pathways.
"Secondly, it is to ensure the sector reduces its carbon dioxide and greenhouse gas emissions from the current 20 per cent contribution to our national climate change reporting," he said.
Tengku Zafrul said the framework has also been designed to complement the ambitions of the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), the National Industry Framework for ESG (i-ESG) and the Green Investment Strategy (GIS).
"We will strive to seek investments in areas such as remanufacturing and refurbishment, industrial waste management and advanced recycling.
"This will result in the production of new sustainable industries and products, opening up new business opportunities for our industry," he said.
The minister added that MITI hopes to attract more green investments by implementing the framework and enabling the growth of a green economy.
On the regional front, Tengku Zafrul said Southeast Asia could lose up to 11 per cent of its GDP by the end of this century if it fails to address climate change.
Hence, he said that as Malaysia assumes the chair of Asean by year-end, MITI plans to provide more impetus to this region's sustainability effort while considering the different capacities of each member country.
"Catalysing access to financing for climate resilience in Asean and the swift adoption of the Circular Economy Policy Framework will set the tone for that ambition," he said. — BERNAMA
TAGS: MITI, Tengku Zafrul Abdul Aziz, Circular Economy Policy Framework, Manufacturing, Sustainability, ASEAN