KUALA LUMPUR: Malaysia’s response to climate change will require an estimated USD85 billion (RM392 billion) over the next 50 years, according to the country’s Natural Resources, Environment and Climate Change Minister, Nik Nazmi Nik Ahmad. He emphasized the importance of transitioning to renewable energy as a key strategy to address climate change and reduce carbon emissions. However, he acknowledged that the financial commitment for this energy transition would be substantial.
Nik Nazmi stated that comprehensive studies are currently underway to determine the exact total investment required to achieve net-zero emissions. However, it is estimated that Malaysia will need a total of RM637 billion of new investments in renewable energy. The government aims to increase the share of renewable energy in the country’s power generation to 70% by 2050. Achieving this goal will necessitate a significant investment of approximately RM637 billion.
Speaking at the Climate Finance Summit in Sasana Kijang on Thursday (July 13), Nik Nazmi highlighted that the required investment includes various aspects such as renewable energy generation sources, grid infrastructure strengthening, energy storage systems integration, and grid system network operation augmentation.
He further noted that Malaysia updated its first Nationally Determined Contributions (NDC) in 2021, setting a more ambitious target of reducing economy-wide carbon intensity by 45% against gross domestic product (GDP) levels recorded in 2005. This shows Malaysia’s commitment to further reducing emissions compared to its previous submission in 2016. Nik Nazmi disclosed Malaysia’s aspiration to achieve net-zero greenhouse gas emissions by 2050.
Nik Nazmi also shed light on the devastating economic consequences of climate change for Malaysia, citing a total loss of RM622.4 million due to floods in the country last year. This loss accounted for 0.03% of the country’s nominal GDP.
A special report by the Statistics Department in February revealed that public assets and infrastructure incurred 37% of the losses, followed by agriculture and living quarters at 25%, business premises at 8%, vehicles at 4%, and manufacturing at 1%.
The Climate Finance Summit serves as a platform for stakeholders from various sectors, including businesses, regulators, financiers, and the public to discuss Malaysia’s position in the global climate narrative. The summit aims to generate ideas on accelerating the financing of the country’s mitigation and adaptation efforts.
Nik Nazmi emphasized that climate finance is not just a theoretical concept but a vital requirement for addressing the global climate crisis. He stressed the urgency of mobilizing funds to mitigate greenhouse gas emissions, support vulnerable communities, and foster economic growth.
Credit: The Star : News Feed
