Nik Nazmi said that according to the Malaysia transition energy outlook report prepared by the International Renewable Energy Agency, the country would require an investment of RM637bil up to 2050 to increase the renewable energy capacity. — Bernama
KUALA LUMPUR: Environmental, social and governance (ESG) issues are increasing in importance for business, trade and investment, and countries that can successfully make the energy transition and master ESG and green technology will get ahead while those that do not will be left behind.
Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said according to the Malaysia transition energy outlook report prepared by the International Renewable Energy Agency, the country would require an investment of RM637bil up to 2050 to increase the renewable energy (RE) capacity.
“To reach to our target of net zero (emissions) by 2050, we need such an investment to install a new system, upgrade the grid and have more solar panels in the future.
“More hydrogen plants and mini-hydro plants as well as battery storage infrastructure are needed to prepare for RE so that we could move forward.
“Currently our capacity for RE, including large hydro (plants), is 25%. We still rely heavily on coal and natural gas.
“We have already declared ‘no new coal’ (coal power plants) in Malaysia and will use new sources of energy.
“In the meantime, we are viewing liquefied natural gas as a form of bridging as we move towards net zero,” he told reporters on the sidelines of the MIDF Green Conference 2023 yesterday.
He said the Natural Resources, Environment And Climate Change Ministry (NRECC) is also working on a Climate Change Act, which will establish a legal framework on climate change mitigation and compliance mechanisms.
“We are likewise developing an Energy Efficiency and Conservation Act with the aim of regulating energy efficiency and conservation practices. I am fully committed to finalising the bills and implementing them to optimise resource utilisation and minimise the environmental impact of our economic development,” he said.
Sustainability, he stressed, required collective efforts of the government, Corporate Malaysia, and all responsible parties.
He said consumers are increasingly concerned about sustainability and there would be no “win-win” situation if the environment is destroyed.
The finance industry should take the lead in embracing sustainability via its operations the products, Nik Nazmi said.
“We must green the finance and finance the green. I think the support is there but it can always be better. Bank Negara and the Securities Commission are doing a lot of work trying to put more focus on sustainability.”
Meanwhile, MIDF group managing director Datuk Charon Wardini Mokhzani, in his welcome speech, said the MIDF Green Conference began in 2019 when a few local banks were talking about green finance, sustainability, ESG and the carbon economy.
“It is a hugely important issue for the country on how to decarbonise and be more environmentally aware.
“The Climate Change Act mentioned by the minister is a laudable development in this regard,” he said.
While Europeans have strict laws and regulations on carbon emissions and the environment, this is not the case in many of the US states which have coal mines and coal-powered power plants, according to him.
“Our policies on climate and decarbonisation are made by many different regulators and government agencies not just by the NRECC.
“The financial regulators, for example, have come up with policies on ESG and carbon that financial institutions and listed companies need to abide by,” he added. — Bernama
