Malaysia has set clear targets towards achieving net zero carbon emissions as early as the year 2050, as outlined under the Transition Roadmap Energy (NETR) and New Industrial Master Plan 2030 (NIMP). However, according to the Ministry of investment and Trade the energy transition effort requires large funding, with an estimated expenditure of around RM1.2 trillion up to RM1.3 trillion by 2050. In the initial stage, from 2023 to 2029, an estimated RM250 to RM280 billion is needed to realise this initiative. Therefore, MITI said to deal with the huge financing needs, Malaysia needs to utilise various capital sources including through “Green Investment” which is not only more competitive but at the same time, is seen in line with the current global investment trend that gives emphasis on Environmental, Social and Governance aspects (Environmental, Social and Governance – ESG).
Realising the importance of green investment to the national economic growth, the government set up a Green Investment Strategy and Implementation Steering Committee which is to be chaired by Dato’ Sri Haji Fadillah Haji Yusof, Deputy Prime Minister. He will be joined by various ministries including the Minister of Energy Transition and Transformation Water. The committee is also joined by representatives from the Ministry of Economy, Ministry of Finance, Ministry of Transition Energy and Water Transformation, Ministry of Natural Resources and Natural Sustainability and the Ministry of Science, Technology and Innovation. Meanwhile, MITI is the secretariat to this committee. During the first meeting, Dato’ Sri Haji Fadillah Haji Yusof emphasized, in efforts needed to attract green investment where a prospective study is necessary to ensure the implementation of the transition is more effective.
MITI Minister Tengku Zafrul Tengku Abdul Aziz agreed that the short term study is a step in the right direction and is the starting point to implement the green investment agenda in a more effective manner. The implementation of the study is complementary to NIMP and NETR which will identify list of green investment opportunities based on six energy transition levers under NETR; List of green investment priorities; Synergies between green investment opportunities and known sectors sure; Localization of opportunities; and Green investment opportunities.
MITI said the Steering Committee has also agreed that the scope of the study should be expanded to include aspects of the legal framework (legal framework) for Carbon Capture, Utilization and Storage (CCUS). Taking into account the Government’s recognition of CCUS activities as one of the country’s new green and low-carbon growth strategies.
