Malaysia

Malaysia is up 11 places to 48th and among the low performers in this year’s CCPI. The country receives a medium rating for GHG Emissions, a low rating for Renewable Energy, and Climate Policy and very low rating for Energy Use.

Fossil Fuels Need to Be Fully Retired

Malaysia’s NDC aims for a 45% reduction in energy intensity by 2030 compared with 2005 levels, and the government has set a net zero emissions target for 2050. The targets for the revised NDC 3.0, due in early 2025, have not yet been announced and the CCPI national experts criticise the lack of public consultation in the lead-up. The National Energy Transition Roadmap aims for 70% renewables in the energy mix by 2050. Several climate policies are under development, including the Long-Term Low Emissions Development Strategy (LT-LEDS) and a draft Climate Change Bill. Civil society has been informed that the LT-LEDS will be shared beforehand, but the experts emphasise the need for it to include a phase-out of fossil fuel production.

In energy, Malaysia has established a phase-out plan for existing coal-fired power plants, aiming to reduce their share to 50% by 2035 and fully retire them by 2044. The country has introduced a programme mandating transportation diesel be blended so 20% is palm-based biodiesel. The experts criticise that further new oil and gas fields are being explored, which risks creating long-term fossil fuel dependence. Malaysia also has significant biomass production capacity, with 1.2% of its total electricity generated from bioenergy in 2019. While expanding renewable energy is vital for the energy transition, it must be done justly and equitably. The experts point to human rights violations related to large-scale solar projects, which have impacted indigenous communities living on affected lands.

Greater Public Consultation Is Needed on Forests

Malaysia’s transport sector lacks sufficient climate policies. While diesel subsidies were removed, petrol remains subsidised for targeted groups. However, efforts are underway to expand electric vehicle infrastructure.

Forest covers large parts of Malaysia’s land, but deforestation has increased in recent years. The federal government continues its commitment to maintaining over 50% forest cover in the country. Policies such as No Deforestation, No Peat, and No Exploitation are in place to ensure that palm oil meets sustainability certification standards through the Roundtable on Sustainable Palm Oil. However, the CCPI experts criticise that, as the state governments control land matters, they can decide on the use of reserved forests or protected areas without the federal government’s prior approval. This process lacks transparency and public consultation. Therefore, our experts urge the government to require state governments to provide prior announcements, hold public consultations, and obtain approval from state parliaments before using forest areas.

We annually review data on land use, land-use change, and forestry (LULUCF) with the help of Nicklas Forsell (International Institute for Applied Systems Analysis). This year’s review revealed a larger difference in LULUCF data for Malaysia. For the first time, we take Common Reporting Framework (CRF) LULUCF data instead of LULUCF data from the Food and Agricultural Organization (FAO) for Malaysia, which leads to lower emissions and a better ranking and rating.

Key Outcomes

CCPI Experts

The following national experts agreed to be mentioned as contributors for this year’s CCPI:

• Anthony Tan Kee Huat