Malaysia

Malaysia ranks 49th in the CCPI, down one place and still among the low performers. The country receives a high rating in GHG Emissions, low in Renewable Energy and Climate Policy, and very low in Energy Use.

Energy roadmap is welcomed though 2050 renewables target cannot achieve net zero

Malaysia’s 2021 Nationally Determined Contribution (NDC) aims for a 45% reduction in carbon intensity by 2030 compared with 2005. An undisclosed Long-Term Low Emissions Development Strategy (LT-LEDS) was submitted to the UNFCCC two years ago, and debate is ongoing about a climate change bill that would provide a legally binding framework for renewables rollout, energy use targets, and an energy transition roadmap.

Though the CCPI country experts welcome the National Energy Transition Roadmap (NETR) that entered into force in July 2023, the target of a 70% renewables share in the energy mix by 2050 remains well below what’s needed to reach net zero in that same year. This ambition (or aspiration, as the Ministry of Natural Resources and Environmental Sustainability frames it) was reiterated during the country’s 2025 ASEAN chairmanship and recent COPs.

Coal phase-down in place but depends on many factors, and oil and gas exploration continue

The NETR sets specific goals for a coal phase-down, such as shutting down existing coal-fired plants by 2044 and a substantial reduction of their share in electricity generation by 2035. However, achieving these targets hinges on several factors, such as discontinuing power purchase agreements (PPAs). The experts are also concerned that new gas-powered plants may serve to offset the shrinking coal capacity, leading to a fossil lock-in in the electricity sector. Renewables still only play a minor role in electricity generation, although it must be recognised that some large-scale solar projects are underway. The experts demand that these projects’ adverse effects on the indigenous population be avoided. Expanding renewable energy is vital for the energy transition, but it must be done justly and equitably. The ongoing exploration of oil and gas fields has long been criticised and continues to undermine the so-called Unity Government’s mitigation efforts – a huge policy incoherence. Heavy subsidisation of petrol that runs counter to electrification efforts in the transport sector is another aspect here.

Overall, the experts stress the country’s commitment to increasing the amount and scope of protected areas to maintain a 50% forest cover. Greater ambition for NDC 3.0 and the 2050 renewable energy target are needed. Above all, reducing the reliance on fossil fuels remains the most important climate policy issue. Some states, such as Sabah (population 3.4 million), are leading the way in decarbonisation and forest protection policies.

Key Outcomes

CCPI experts

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

• Anthony Tan Kee Huat