Abstract
This chapter critically reviews the current state of Malaysia’s low-carbon initiatives and commitments. The chapter further profiles Malaysia’s low-carbon energy installation capacity as well as energy supply and identifies the barriers in deploying low-carbon technologies (LCT). This chapter also discusses the policy framework readiness and international collaboration particularly the globalization of LCTs to achieve its Intended Nationally Determined Contribution (INDC) targets. The projected results show that Malaysia needs to reduce its total greenhouse gas (GHG) emission by 11 and 31% to achieve its unconditional (35% of GHG emission intensity) and conditional (45% of GHG emission intensity) INDC targets, respectively, by 2030. Malaysia is able to achieve these targets if policy and initiatives are diligently followed. Currently, Malaysia has achieved some success in promoting installation capacity of renewable energy yet the deployment of LCTs is still limited. Among these technologies, within the energy sectors, biomass and solar PV seems to be viable but technology deployment in order to provide sufficient renewable energy mix has been slow. The efforts so far seem to be fragmented and less coordinated with multiple institutional settings and poor policy coordination. Indeed, clear targets need to be established in the INDC including the sectorial targets. The low-carbon technological focus is missing in various policies, especially those with regard to industrial technologies. Take-up rate in the industrial sectors as well as in the consumer markets are still limited, the reasons being slow technological shifting, low tariff rates due to subsidization of energy, high capital and technology cost, lack of financing channels as well as limited policy and institutional coordination. It is crucial that Malaysia removes these constraints if it intends to achieve its INDC targets as proposed in the mitigation plan. Globalization of LCTs is crucial in meeting the targets of INDC.
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Notes
- 1.
The oil crisis in 1979 and the discovery of natural gas in 1982 have shifted the fuel mix from oil to gas. And, gas limitation in 2002 and severe gas shortage in 2011 led to coal as the main source of fuel mix. Coal is expected to be the dominant source of fuel mix in the coming years.
- 2.
Tenaga Nasional Berhad (TNB) is a major power utility in Malaysia, which has targeted and projected that nuclear power will contribute 8–9% to the electricity generation beginning of 2025 and RE will contribute 2–2.5% starting 2017.
- 3.
Due to space constraint, the methodology is not fully explained in this chapter, e.g. projections, energy saving profile and others.
- 4.
In the 11th Malaysia Plan, it was projected that Malaysia’s GDP will be 1.4 trillion in 2020 and 2.6 trillion in 2030. However, we used a more reasonable target of 5% annual average growth.
- 5.
The estimation is based on the current profile of emissions. We assume there will not be significant differences and energy sector will still contribute to most of the emissions.
- 6.
Based on estimates by Tenaga Nasional Berhad.
- 7.
Based on global emission data by technology, emission is highest for coal followed by gas, biomass, PV, hydro, wind and nuclear, respectively.
- 8.
TNB owns the transmission and distribution grid throughout peninsular Malaysia and Sabah and is responsible for approximately 60% of the total power generation in Malaysia.
- 9.
The older IPPs have always been protected from fuel price risk due to long-term fixed price arrangements.
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Chandran Govindaraju, V.G.R. (2017). INDC and Low-Carbon Technology Deployment Scenarios: Malaysia. In: Anbumozhi, V., Kalirajan, K. (eds) Globalization of Low-Carbon Technologies. Springer, Singapore. https://doi.org/10.1007/978-981-10-4901-9_5
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