KUALA LUMPUR, Aug 29 — Prime Minister Datuk Seri Anwar Ibrahim today announced an allocation of RM2 billion for the National Energy Transition Facility.

This is due to Malaysia’s current state of immature decarbonisation technologies, which will require alternative energy sources and regional and international collaboration, he said at the launch of the National Energy Transition Roadmap (NETR) here this morning.

"This facility will enable catalytic blended finance, to ensure a seamless flow of financial resources towards energy transition projects that are marginally bankable or yielding below-market returns.

"For example, investment in electric vehicle value chain, hydrogen and carbon capture, usage and storage technologies,” Anwar, who is also the finance minister, said.

He added that an energy service companies (ESCO) platform will also be launched to connect private ESCO companies, which are mainly comprised of small and medium enterprises (SMEs), with government projects as part of the government’s major retrofit programme to enhance energy efficiency in government buildings.

Besides that, renewable energy supply in Malaysia was at 25 per cent and the country is on track to increase its reliance on renewables to 31 per cent by 2025 and then 40 per cent by 2040, he said.

"The NETR details how we will achieve these objectives,” he explained.

Economy Minister Rafizi Ramli, who was also at the Energy Transition Conference at the Kuala Lumpur Convention Centre, said that the government plans to hold the first National Energy Council meeting in October.

"The establishment of the National Energy Council is the strongest signal yet of the government’s intention of moving beyond blueprints and into the nitty gritty of implementation.

"The National Energy Council, chaired by the prime minister, which the Ministry of Economy is the secretariat, would set forth high-level strategic directions and policies, allowing for the working committees to coordinate and report the progress in turn,” Rafizi said.

He added that the NETR was based on realistic and pragmatic views, and not from imagined ideals.

Also present at the event were Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad and Perak Menteri Besar Datuk Seri Saarani Mohamad, among others.

Last month, national news agency Bernama reported that the government launched phase one of the NETR, which was composed of 10 flagship catalyst projects and initiatives and six key energy transition levers including energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, and carbon capture, utilisation, and storage.