DUBAI, Dec 4 — The Natural Resources, Environment and Climate Change (NRECC) Ministry is upgrading the existing Malaysia Green Attribute Tracking System (MGATS) into a comprehensive trading platform for Renewable Energy Certificates (RECs).

Its minister Nik Nazmi Nik Ahmad said the initiative will be in collaboration between TNBX Sdn Bhd, Tenaga Nasional Bhd (TNB) wholly owned subsidiary, and NRECC.

The platform will allow for the commercial exchange of RECs in Malaysia, providing businesses with options to fulfill their respective environmental, social, and governance (ESG) commitments.

"This upgrade will ensure clarity and facilitate efficient transactions,” Nik Nazmi said in his keynote address at Energy Day at the Malaysia Pavilion at the 28th Conference of Parties (COP28) here.

According to Nik Nazmi, Malaysia plans to shift nationwide towards sustainable economic practices and lifestyles, leveraging digitalisation to advance its net-zero ambitions, underscoring Malaysia’s commitment to environmental stewardship.

"However, any transition must be just and fair, and strive to balance the competing aspects of the energy trilemma that require us to balance sustainability, security, and affordability in the energy sector,” he added.

The urgency for Malaysia’s shift to sustainable energy is fuelled by global commitments, particularly the Paris Agreement and the need to fortify economic diversification and energy security, he said.

"This transformative effort requires a significant investment of RM637 billion, and Malaysia invites global collaboration to lead the way to a net-zero future by 2050,” he added.

Nik Nazmi also officiated the soft launch of the 6th International Sustainable Energy Summit (ISES) 2024, which will be held from Aug 20-21, 2024 at the Kuala Lumpur Convention Centre.

Themed "Accelerating Energy Transition Through Innovation,” the summit is timely and underscores Malaysia’s commitment at COP28 to expedite the global shift toward sustainable energy via innovative approaches.

"Considering the global momentum towards cleaner and more efficient energy solutions, innovation plays a crucial role in expediting this critical energy transition,” Nik Nazmi said. — Bernama