Deputy Prime Minister Dato’ Sri Fadillah bin Yusof presented Malaysia’s strategic vision for energy transition and climate finance at the Climate Finance Summit 2024, held on August 1 at Sasana Kijang, Bank Negara Malaysia. The summit, themed “Mobilizing Capital for a Just Transition,” emphasized innovative financial solutions to tackle climate challenges.
In his keynote address, Fadillah who is also the Energy Transition And Water Transformation (PETRA) Minister detailed Malaysia’s commitment to a sustainable energy future with several key initiatives:
- Renewable Energy Expansion: Malaysia aims to boost its renewable energy capacity from 40% by 2035 to 70% by 2050. New programs, including the Large Scale Solar Programme and a Corporate Renewable Energy Supply Scheme launching in September 2024, are set to accelerate this transition.
- Enhanced Energy Efficiency: The government is pushing forward with energy efficiency through new legislation and a revised National Energy Efficiency Action Plan. These measures aim to reduce national energy consumption and optimize resource use.
- Green Technology Incentives: Since 2013, Malaysia has offered tax incentives such as the Green Investment Tax Allowance and the Green Income Tax Exemption to promote green technology investments.
- Low Carbon Cities Framework: The initiative targets reducing urban carbon footprints with sustainable planning and green technology integration.
- Green/Sustainability Sukuk: Malaysia remains a pioneer in issuing Green and Sustainability Sukuk, Islamic bonds designed to fund environmentally friendly projects.
- National Energy Transition Roadmap (NETR): The NETR outlines Malaysia’s path to a cleaner economy, focusing on ESG compliance and flagship projects in energy efficiency, renewable energy, and other low-carbon technologies.
Fadillah underscored the crucial role of international cooperation and climate finance in achieving Malaysia’s climate goals, including a 45% reduction in carbon intensity by 2030, as part of the Paris Agreement.
The Deputy Prime Minister called for collaborative efforts among regulators, financiers, and civil society to develop innovative climate financing solutions. He highlighted that while the transition to a sustainable future involves challenges, it also offers significant opportunities for innovation, green job creation, and economic resilience.
In closing, Fadillah urged participants to engage in meaningful dialogue and collaborative solutions to advance Malaysia’s climate ambitions, ensuring a sustainable and equitable future for generations to come.
