Environment concerns have taken on leading discussions in both emerging and developed economies as a result of environmental degradation. In its complex nature, many countries face excesses in the amount of carbon dioxide in the atmosphere which is dramatically rising because of energy use and economic development. Fossil fuels such as coal and natural oil and gas as energy sources have ‘long-overstayed their welcome’ resulting in an increased amount of CO2 emissions.
The call for Energy Transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption to renewable energy sources like hydro, wind, solar, or geothermal energy and hydrogen, as well as lithium-ion batteries. Regulation and commitment to decarbonisation have received a mixed standpoint due to the factors of economics and profiteering, but the energy transition will continue to increase in importance as investors prioritise environmental, social and governance (ESG) factors.
As more investors and companies seek greater clarity and confidence in accounting for long-term climate risks and opportunities, businesses are adapting to the “energy transition.” Switching from nonrenewable energy sources to renewable energy is made possible by technological advancements and a societal push toward sustainability. Spurred by structural, permanent changes to energy supply, demand, and prices, energy transition also aims to reduce energy-related greenhouse gas emissions through various forms of decarbonisation. Energy transition refers to much more than power generation.
It includes the sector’s shift from burning fossil fuels to generate electricity, to using renewable resources but the wider goal is to cut CO2
emissions while developing energy storage and electrifying major industry and transportation systems.A carbon footprint is the total amount of greenhouse gases (including carbon dioxide and methane) that are generated by people’s actions. The most obvious reason why reducing carbon footprint is important is that it is adversely affecting the planet. Rising temperatures, year-long rain showers, tropical storms, wildfires, melting ice caps, and other unusual climate changes are a result of increasing CO2 emissions. Shifting precipitation patterns are affecting the growing patterns of plants. As a result, indigenous vegetation is moving to cooler climates. While sea levels are rising, shores are eroding, and ecosystems are getting destroyed.
The importance of reducing carbon footprint can also be attributed to the fact that it poses a significant threat to the economy. Additionally, rising water temperatures are threatening the survival of coral reefs putting a major dent in the economy.
Malaysia’s National Energy Transition Roadmap (NETR) is the strongest signal yet of the Malaysian government’s commitment to achieve the country’s aspirations for net-zero emissions by 2050. It sets the goal to accelerate energy transition and change the way energy is generated to improve climate resilience.
NETR has developed the Responsible Transition (RT) Pathway 205 to shift Malaysia’s energy systems from fossil fuel-based to greener and low- carbon systems. The plan provides a clear view for investors and stakeholders on the efforts needed to achieve green power generation and grid integration of renewable energy sources.
