THE National Energy Transition Roadmap (NETR) recently released by the Economy Ministry shows Malaysia’s strong commitment to achieving net-zero emissions by 2050. According to a statement from Abhishek Kumar, KPMG’s Infrastructure, Strategy & Operations head in Malaysia, the involvement of multiple government agencies and regulatory bodies in the roadmap’s preparation signifies progressive collaboration.
Abhishek Kumar emphasizes that implementing the NETR roadmap will require national infrastructural and legislative reforms. The government needs to establish robust policy and regulatory frameworks to create a favorable investment climate for financing and implementing these initiatives.
The NETR also opens up the hydrogen gateway in Sarawak as the state implements projects to emerge as the nation’s hydrogen hub and puts in place the framework of carbon capture and storage (CCS).
The first phase of the NETR builds on the National Energy Policy (DTN) 2022–2040 and includes ten flagship catalyst projects. These projects are selected based on ongoing initiatives by various stakeholders, including government agencies and private organizations.
The NETR is expected to create investment opportunities of RM435 billion to RM1.85 trillion by 2050 as part of Malaysia’s pursuit to achieve 70% renewable energy capacity. Abhishek Kumar states that this provides clarity for investors and stakeholders on the efforts required to achieve green power generation and grid integration of renewable energy sources. The ten flagship catalyst projects outlined in Phase 1 of the NETR are expected to attract significant investment to accelerate Malaysia’s energy transition.
Abhishek Kumar highlights the importance of advancing new policies, projects, and infrastructure as enablers for corporates to embark on decarbonization.
The NETR aims to substantially reduce greenhouse gas emissions, primarily in the energy and transport sectors, which are the largest contributors to emissions in Malaysia. It categorizes its catalysts into three pivotal categories: energy usage reduction, green energy supply, and carbon capture.
KPMG praises the government’s commitment to enhancing national energy efficiency, acknowledging it as one of the most cost-effective steps in curbing global warming. The upcoming Energy Efficiency and Conservation Act (EECA) is also expected to promote energy efficiency improvements.
Abhishek Kumar considers the NETR as an important first step, but emphasizes the need for timely reforms to address emerging risks. As countries explore alternative energy sources and adopt electric vehicles, the government should consider the potential health and safety risks. A holistic approach is essential to achieve Malaysia’s goals.
Credit: The Star : News Feed
