22/01/2010 (New Straits Times) - IN an area next to the Abu Dhabi International Airport, construction is under way on the world's first carbon-neutral city. Not all countries have the financial means of the United Arab Emirates to launch such a massive project. Masdar City costs US$15 billion. But planners say countries like Malaysia can start small by earmarking several locations as low-carbon areas to reduce carbon emissions, KOI KYE LEE reports.

MALAYSIA is said to be considering the building of its first carbon-neutral city as one of the projects to be undertaken by a joint venture between Abu Dhabi's Masdar and 1Malaysia Development Bhd (1MDB).

1MDB is a state-owned sovereign wealth fund manager mandated to drive strategic initiatives for the long-term sustainable economic development of Malaysia.

Masdar, on the other hand, is a wholly-owned subsidiary of Abu Dhabi's Mubadala Development Company.

Under the joint venture, Masdar and 1MDB will jointly explore clean technology projects and investments.

Both companies will also cooperate and invest in carbon reduction projects and clean technology venture capital.

At the signing ceremony in Abu Dhabi last week, 1MDB chief executive Shahrol

Halmi said it was their "intention to explore business opportunities relating to the development of an environment- friendly carbon-neutral city in Malaysia".

It may take a while before such a plan takes off, depending on the government's means and constraints.

But the country can already start the ball rolling by earmarking certain locations as low-carbon emission areas.

As a start, Energy, Green Technology and Water Minister Datuk Seri Peter Chin says the government has earmarked Putrajaya and Cyberjaya as low-carbon areas.

This will mean that the operation of industries in the areas will have minimum emission of greenhouse gases.

These two areas can be pioneer townships in green technology and be the showcase for the development of other similar townships.