PM rolls out nation's energy transition roadmap - MIDA | Malaysian Investment Development Authority
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PM rolls out nation’s energy transition roadmap

PM rolls out nation’s energy transition roadmap

26 Jun 2023

The National Energy Transition Roadmap (NETR) and Hydrogen Economy and Technology Roadmap (HETR), expected to be launched in the second half of the year, are aimed at ensuring Malaysia achieves long-term energy security, with environmental and economic sustainability in mind.

Prime Minister Datuk Seri Anwar Ibrahim said NETR would outline the overarching strategy and high-impact initiatives to expedite the energy transition efforts.

He said NETR would be complemented by the HETR, which will pave the way for the achievement of an environmentally sustainable, long-term energy security in Malaysia, driven by technological innovation.

“Malaysia continues to see natural gas as playing an important role in the energy mix and as one of the cleanest burning hydrocarbons, to transition towards a lower carbon economy.

“As part of the responsibilities of each nation toward overall global climate targets, we have revised our Nationally Determined Contribution (NDC) to reduce the intensity of greenhouse gas (GHG) emissions by 45 per cent by 2030 compared with 2005 levels,” he said in his keynote address at the inaugural Energy Asia 2023 opening ceremony here today.

Anwar said efforts towards achieving the NDCs had been incorporated into the 12th Malaysia Plan (12MP) and the National Energy Policy 2022–2040 (NEP 2040).

Today, more than 75 per cent of the energy consumed in Asia comes from hydrocarbons and by 2030, Asia’s demand for energy would be projected to double, he said.

“The challenge is, how do we meet that demand in a way that balances energy security, affordability and sustainability.”

While some countries are preparing to transition to cleaner forms of energy, others are still struggling with access to complete electrification, clean cooking fuel and energy security.

“Affordability remains a key concern, particularly for parts of developing Asia where people are not looking too far into the future, but might simply be struggling to pay the bill for the next week and to put food on the table.

“Countries in Asia are not climate deniers and indeed Asia is showing positive signs of embracing the energy transition, but countries across the region are moving at a different pace.”

Some of the largest economies in the region, namely, China, South Korea and Japan have committed to achieving net zero by the middle of this century, while India had set ambitious renewable energy targets, he said.

In Asean, he said, hydrocarbons would continue to be an important part of the energy mix to drive economic growth and development.

“Despite that, nine out of 10 countries in Asean have pledged net zero targets at COP26. However, net zero need not be a zero sum equation. It should not be one of lowering carbon emissions at the expense of economic growth or vice versa.”

Instead, Asia must take every opportunity to hold further dialogues and take actions on how to responsibly plan to enable every country its right to development and lower carbon aspirations, he said.

He said electricity interconnection and integration would be crucial to facilitate the sharing of renewable energy resources, encourage investment and promote sustainable development within the Asean region, in meeting its climate goals and achieve decarbonisation.

With its strategic central location, Malaysia was committed to strengthening interconnection and collaboration with neighbouring countries for this purpose, he said.

“Investors and financiers will risk losing out in not turning towards Asia, which is endowed with vast amounts of natural resources, potential renewable energy and a growing population that is not averse to co-innovation and is increasingly appreciative of a green economy.

“In light of this, there is further potential for the region to develop as a player in the net zero value chain in as much as the rich biodiversity resources and a high percentage of forest cover offer abundant nature-based solutions.”

He said there was an opportunity to develop the rare earth minerals and establish a conducive ecosystem to strengthen the supply chain, in addition to developing opportunities through hydrogen and Carbon Capture and Storage (CCS), with the innovation of batteries and electric storage well underway.

Anwar said these resources and potential require access to financing, technology and innovation, the right policy frameworks, and skill sets for the future. He said achieving the climate goal for the region would require significant traction in clean energy investment.

“Yet developing economies face higher costs of capital for clean energy projects due to the perception of higher macroeconomic risk and absence of deep capital markets.

“These are areas where stronger collaboration – between the region and the rest of the world, between industries and sectors – is absolutely necessary to realise crucial energy and climate ambitions.

“Considering these challenges, Malaysia is determined to be well-positioned to play our part in reducing emissions while ensuring that we are ready for the growth of the low carbon economy.”

Themed “Charting Pathways for a Sustainable Asia”, the three-day conference held until Wednesday is aimed at driving actionable solutions that will result in a just and responsible energy transition across the region.

Source: NST