Malaysia ratified the United Nations Framework Convention on Climate Change (UNFCCC) in 1994 and the Initial National Communication (INC) submission based on 1994 inventory of emissions and removals was submitted in 2000. Now with the coming in force of the Kyoto Protocol on 16 February 2005, the preparation of the Second National Communication (NC2) would be a continual step towards Malaysia’s commitment on the national implementation of UNFCCC. The approach and process consisted of a self-assessment of the national greenhouse gases (GHG) inventories that would include measures undertaken to adapt and to mitigate climate change. The objective would be to improve NC2 submission in 2006 by addressing the gaps identified during the preparation of INC. The NC2 would cover all sectors that would be vulnerable to climate change. For each of the sector identified, an inventory of possible sources of GHG emissions/removals was listed. Under INC only five broad sectors of energy, industrial process, agriculture, land-use and land-use change and forestry, and waste, had their emissions and removals through sequestration identified and quantified.

In updating the GHG inventory for the base year 2000, the 1996 IPCC revised guidelines were used, and the 1994 inventory was also recalculated using the 1996 guidelines. The vulnerability and adaptation of the oil palm plantations activities were assessed for all seven sectors of agriculture, forestry, biodiversity, water and coastal resources, public health and energy. As for the mitigation of climate change, however, the oil palm industry activities for five sectors of energy, agriculture, waste, land-use and land-use change and forestry, including the use of clean development mechanism (CDM) was reviewed. The details of adaptation and mitigation measures undertaken by the oil palm industry activities were prioritized in the NC2. From the prioritization, improvement in GHG inventory, adaptation measures and mitigation options were used to compute as accurately as possible the total GHG emissions to determine whether the industry is a net emitter or sequester of GHG emissions. The positive contribution by the oil palm industry in reduction of GHG emissions would be used to assist in the computation of the net national GHG emissions when the other industries’ sectors net emissions would be totalled up. The role and contribution of the oil palm industry in enhancing reduction of national GHG emissions would be highlighted. The paper provided firm recommendations to improve the computation of GHG emissions by focusing on capacity building process, coordination, sustainable development and integration of climate change programmes in the medium- to long-term planning of the palm oil industry.