JANUARY 15 — The government’s aggressive strategy to attract investments has shown results. Both FDIs and DDIs have responded positively. The relatively stable political climate is a key factor. Kudos to the government.
Despite the resounding success, shown by the unusually high FDI pledges, critics find difficulty accepting. They continue denying. Apart from the political stability, the other factor which investors value is the government’s demonstrated commitment to decarbonize the economy. The initiatives taken, including the New Energy Transition Roadmap (NETR), as well as incentivizing businesses to embrace ESG, have been well received by investors as the world continues to pursue net-zero.
Many agree decarbonizing Malaysia requires a multi-faceted approach, combining policy, technology, finance, and behavioural changes. Some key strategies are on the cards.
Transitioning to renewable energy is one. Malaysia has abundant sunlight, making solar a prime candidate. Initiatives are underway to expand rooftop solar panels, solar farms, and incentivize households and businesses to adopt photovoltaic systems.
Next is to invest in wind and hydro. Leverage wind resources in coastal areas and optimize hydroelectric power plants, especially in regions like Sarawak.
We must not forget biomass and biogas. SEDA has launched the FIT schemes to invigorate utilizing Malaysia's vast palm oil residues and other agricultural waste to produce bioenergy sustainably. Whilst the Plantation and Commodities Ministry is tasked to drive the National Biomass Action Plan, the scheme has achieved limited success. SEDA will soon introduce FIT 2.0 to further improve the take-up rate.
The program to electrify transportation is developing well. The government is encouraging EV adoption through subsidies, reduced taxes, and developing a robust charging infrastructure. Not to mention improving public transport in cities.
The government has not let up in efforts to expand the rail and bus systems and improve service quality to reduce dependency on private cars. Biofuels for aviation and shipping, now embraced worldwide, prove a good way to decarbonize. The successful palm biodiesel scheme should inspire others.
Improving energy efficiency and conservation has been standard practice. A good example is the green buildings scheme, which mandates energy-efficient designs and retrofits for commercial, residential, and industrial buildings.
Smart energy systems are deployed using smart grids, metering, and demand-response technologies to optimize electricity consumption. Under industrial energy saving, we implement energy management systems and upgrade machinery to reduce energy intensity in industries like oil and gas, and manufacturing.
Carbon capture, utilization, and storage (CCUS) has been touted as a strategy. Expertise from the oil and gas sector can be leveraged for carbon capture technologies.
Carbon markets are on the card. This is where we create policies for carbon trading, enabling industries to offset emissions through CCUS or renewable energy investments.
Sustainable agriculture is becoming more common. Reforestation programs have been launched, especially on degraded lands, to serve as carbon sinks. Sustainable palm oil production practices are widespread. Almost all are certified to MSPO.
Urban tree-planting initiatives are on the rise to offset emissions and improve air quality.
An integrated circular economy framework is in the offing. Under waste-to-energy, municipal solid waste and agricultural byproducts feature, while also improving recycling systems. Implementing the circular economy frameworks will minimize waste and maximize the reuse of materials across industries.
Carbon will be priced through carbon taxes to incentivize decarbonization. Green financing is on the card. This is where banks and investors are encouraged to fund renewable energy and sustainable projects.
Regulations are key. Strict regulations on industrial emissions must be enforced, including supporting clean energy transitions with subsidies or tax incentives.
Public awareness must be intensified. Behavioural change is crucial. Citizens must be reminded of the importance of reducing emissions and adopting sustainable practices.
This is done by regularly engaging local communities in tree planting and conservation projects.
There are challenges, though. A reliable transition to renewable energy should not compromise energy security. Interagency collaboration aligning strategies across federal, state, and local levels is crucial.
Not to mention collaborating with countries leading in green technology for knowledge sharing.
By adopting these decarbonizing strategies, Malaysia can achieve its net-zero target while sustaining economic growth and social equity.
* Professor Datuk Dr Ahmad Ibrahim is an associate fellow, Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
