Malaysia unveils details of energy transition roadmap

Market: Coal, Emissions, Hydrogen
30/08/23

Malaysia on 29 August launched a detailed national energy transition roadmap (NETR), which sets out initiatives the government will undertake to achieve its 2050 net zero target.

The government launched the first phase of the NETR on 27 July comprising six energy transition levers — renewable energy, hydrogen, bioenergy, green mobility, energy efficiency and carbon capture, utilisation and storage (CCUS).

The latest version of the roadmap states that the government will also launch a national energy transition facility (NETF), with 2bn ringgit ($431mn) allocated as the initial seed fund. Projects under the NETR are expected to attract investments of more than 25bn ringgit and reduce emissions by more than 10mn t/yr of CO2 equivalent (CO2e). The NETR also aims to set up a national committee on energy transition to strengthen cross-sector collaboration in energy policy planning.

The NETR sees Malaysia achieving 70pc installed renewable energy capacity by 2050, mainly made up of solar photovoltaic (PV) capacity. The share of coal-fired power generation is targeted to fall to zero in 2050 from around 26pc currently, and no new coal-fired power generation will be developed.

Transportation is a significant greenhouse gas (GHG) emission contributor in Malaysia, with the land transport sector accounting for 55mn t/yr of CO2e. The government hence intends to adopt more green mobility practices and technologies across various transport sectors such as light and heavy land vehicles, aviation and marine transport. It aims for electric vehicles (EVs) to make up 80pc of the vehicle fleet by 2040, and targets local EV manufacturing capabilities to make up 90pc of local EV manufacturing. It also intends to introduce a blending mandate of up to 47pc sustainable aviation fuel (SAF) by 2050.

The government aims to enhance overall energy efficiency to lower energy intensity and reduce CO2 emissions, to improve "all dimensions of the energy trilemma by reducing demand to improve energy security, lowering costs for users to enhance energy equity and minimising emissions from energy production to elevate environment sustainability", the roadmap states.

Malaysia is also considering the potential of green hydrogen. The NETR aims to establish one low-carbon hydrogen hub by 2030, and an additional two hubs by 2050. It also aims to produce up to 2.5mn t/yr of green hydrogen by 2050 from renewable energy sources such as hydroelectric and solar.

Malaysia is additionally targeting the development of three CCUS hubs by 2030, with two in peninsular Malaysia and one in Sarawak, with a total storage capacity of up to 15mn t/yr. It also aims to add a further three carbon capture hubs by 2050, with a total storage capacity between 40mn-80mn t/yr.

The NETR estimates that Malaysia will require an investment of 1.2 trillion-1.3 trillion ringgit by 2050 to achieve its energy transition goals.

By Prethika Nair

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

08/05/25

Cop 30 head urges upgraded climate co-operation: Update

Updates with comments from Copenhagen climate ministerial London, 8 May (Argus) — The incoming president of the UN Cop 30 climate summit today called for climate co-operation to be "better equipped" to implement the Paris climate agreement and Cop decisions, including "upgraded global governance" on climate action. Cop 30 president-designate Andre Correa do Lago has called for "innovative governance approaches" and for the aggregation of "currently fragmented" efforts. This would reinforce the decision-making process for UN climate body the UNFCCC and support the implementation of the Paris agreement, he noted. Climate advocates including former UN secretary general Ban Ki Moon last year wrote an open letter to the UN calling for a reform of the Cop climate change summits which they said have failed to deliver change at the speed and scale required. "Climate change will increasingly supervene and disrupt political and socioeconomic agendas", Correa do Lago wrote in a second letter outlining his priorities for the summit, which will be held in November in Belem, Brazil. The president-designate has previously set out his hopes for Cop 30 to be "a Cop of action". Minister and leaders are "still committed to finding solutions together", Danish climate minister Lars Aagaard said today. He co-hosted a climate ministerial this week in Copenhagen, Denmark, alongside Correa do Lago, at which country representatives "worked to lay the foundation" to Cop 30. "Even though the international backdrop is marked by war and unrest, and even though we are experiencing nations pulling in a darker direction, there is still momentum for global climate action," Aagaard said. Correa do Lago acknowledged "serious geopolitical, socioeconomic, and environmental challenges", calling for reinforced multilateralism. And he set out his vision for a "Global Mutirao" — an "unprecedented" global mobilisation of "self-driven" climate action. Brazil's Cop 30 presidency has set up four "circles of leadership", including one comprised of previous Cop summit presidents, and a "circle of finance ministers". The latter, chaired by Brazil's finance minister Fernando Haddad, will offer advice to the Cop 30 presidency on climate finance issues, from "policy-making perspectives", Correa do Lago wrote. Climate finance dominated Cop 29 in Baku, Azerbaijan, last year , where countries agreed that developed nations would provide at least $300bn/yr to developing nations by 2035 for climate action and their energy transitions. Countries will this year discuss a promised "roadmap", intended to forge a path to climate finance of $1.3 trillion/yr, but this will likely lie outside formal negotiations. Correa do Lago today pointed to recent data from the World Meteorological Organisation , which confirmed that 2024 was the hottest year on record. It surpassed the previous record set in 2023. But his letter failed to mention the key driver of climate change — greenhouse gas emissions from fossil fuel consumption. Correa do Lago's first letter also neglected the topic , provoking criticism from environmental campaigners. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Cop 30 president urges ‘upgraded’ climate co-operation

08/05/25

News

08/05/25

Cop 30 president urges ‘upgraded’ climate co-operation

London, 8 May (Argus) — The incoming president of the UN Cop 30 climate summit today called for climate co-operation to be "better equipped" to implement the Paris climate agreement and Cop decisions, including "upgraded global governance" on climate action. Cop 30 president-designate Andre Correa do Lago today called for "innovative governance approaches" and for the aggregation of "currently fragmented" efforts. This would reinforce the decision-making process for UN climate body the UNFCCC and support the implementation of the Paris agreement, he noted. Climate advocates including former UN secretary general Ban Ki Moon last year wrote an open letter to the UN calling for a reform of the Cop climate change summits as they said they have failed to deliver change at the speed and scale required. "Climate change will increasingly supervene and disrupt political and socioeconomic agendas", Correa do Lago wrote in a second letter outlining his priorities for the summit, which will be held in November in Belem, Brazil. The president-designate has previously set out his hopes for Cop 30 to be "a Cop of action". Correa do Lago acknowledged "serious geopolitical, socioeconomic, and environmental challenges", calling for reinforced multilateralism. And he set out his vision for a "Global Mutirao" — an "unprecedented" global mobilisation of "self-driven" climate action. Brazil's Cop 30 presidency has set up four "circles of leadership", including one comprised of previous Cop summit presidents, and a "circle of finance ministers". The latter, chaired by Brazil's finance minister Fernando Haddad, will offer advice to the Cop 30 presidency on climate finance issues, from "policy-making perspectives", Correa do Lago wrote. Climate finance dominated Cop 29 in Baku, Azerbaijan, last year , where countries agreed that developed nations would provide at least $300bn/yr to developing nations by 2035, for climate action and their energy transitions. Countries will this year discuss a promised "roadmap", intended to forge a path to climate finance of $1.3 trillion/yr, but this will likely lie outside formal negotiations. Correa do Lago today pointed to recent data from the World Meteorological Organisation , which confirmed that 2024 was the hottest year on record. It surpassed the previous record set in 2023. But his letter failed to mention the key driver of climate change — greenhouse gas emissions from fossil fuel consumption. Correa do Lago's first letter also neglected the topic , provoking criticism from environmental campaigners. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Bangchak tests runs at Thai SAF plant before 3Q launch

08/05/25

News

08/05/25

Bangchak tests runs at Thai SAF plant before 3Q launch

Singapore, 8 May (Argus) — Thai energy group Bangchak is conducting test runs at its sustainable aviation fuel (SAF) plant in Bangkok before likely starting regular production in the third quarter, sources close to the company said. The plant, which is also the country's first SAF plant, will have an initial production capacity of 1mn litres/d. It will mainly consume ISCC-certified used cooking oil (UCO) as feedstock for SAF production via the hydroprocessed esters and fatty acids (HEFA) pathway. Other feedstocks could also be explored in the future, company sources said. The plant will also produce byproducts such as bio-LPG and bionaphtha. Its SAF production process was developed in collaboration with Belgian biofuels processing technology company Desmet, which provided feedstock pre-treatment technologies, and US technology firm UOP Honeywell, a pioneer in hydroprocessing systems, according to Bangchak. Thailand is currently considering the introduction of a SAF mandate at a 1pc blend rate from 2026, with proposals to increase this to 3pc in 2030 and 8pc by 2037. But firm details on implementation mechanisms have yet to be announced. Thailand's board of investment in January approved corporate tax exemptions for SAF producers and investors in the country for a period ranging over 3-8 years. Bangchak has already secured offtake for some of its initial production volumes. The firm last year entered an agreement with oil major Shell's Singapore-based subsidiary to supply SAF from its plant. Bangchak also previously signed another supply agreement with Japanese refiner Cosmo Oil in December 2023, but volumes are still under discussion, a company source said. The Argus fob Singapore SAF netback price has been on a downtrend since late last year, reaching a record lows of $1,668/t on 5 March, and also marking the lowest since Argus ' assessments started in November 2020. The price was at $1,682/t on 7 May. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Last month was second-hottest April: EU's Copernicus

08/05/25

News

08/05/25

Last month was second-hottest April: EU's Copernicus

London, 8 May (Argus) — Last month was the second-hottest April on record globally, EU earth-monitoring service Copernicus said today. The global average surface air temperature in April was 14.96°C, 0.60°C higher than the 1991-2020 average for the month, Copernicus data show. The average temperature last month was 1.51°C above the estimated pre-industrial average, the organisation said. The Paris climate agreement seeks to limit the rise in global temperature to "well below" 2°C and preferably to 1.5°C, to avoid the worst effects of climate change. April 2025 was just 0.07°C cooler than April 2024, which was the hottest recorded , Copernicus found. It was the 21st month in the past 22 for which the global average surface air temperature exceeded 1.5°C above pre-industrial levels, according to Copernicus data — though data from other agencies may not confirm this as the margins are relatively small. The organisations typically concur on the broader trends. A group of six weather and science agencies said in January that 2024 was the hottest on record . Sea surface temperatures "remained unusually high in many ocean basins and seas", while "large areas in the northeast North Atlantic" experienced record-high sea surface temperatures for the month. Arctic and Antarctic sea ice extent was below average, Copernicus found. Around 40 leaders and ministers are meeting this week in Copenhagen, Denmark for a climate ministerial. The discussions will set the direction for climate negotiations taking place this year, including UN-convened technical halfway point talks in June and the UN Cop 30 climate summit in November. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australian renewable projects gain power grid access

08/05/25

News

08/05/25

Australian renewable projects gain power grid access

Sydney, 8 May (Argus) — A total of 10 renewable energy projects have been granted access to a power grid in New South Wales (NSW), Australia, to avoid over 10mn t/yr of CO2 equivalent (CO2e) of emissions by 2031, the NSW state government said today. The 10 private solar, wind and battery storage projects will connect to the Central-West Orana Renewable Energy Zone (REZ) , a 20,000 km² area about 400 km west of state capital Sydney that will avoid 10.29mn t/yr of carbon emissions, according to the state's energy minister. Construction of the 240 km transmission line connecting the renewable energy projects to the national electricity market will start in mid-2025 and is estimated to cost A$3.2bn ($2.1bn). The 10 projects will provide total renewable energy and storage capacity of 7.15 GW, capable of powering over half the households in NSW by 2031. The Central-West Orana REZ is expected to be completed by December 2028 and is part of the NSW's transition to renewable energy. The REZ is expected to generate 15,000 GWh/yr of energy when fully operational, around 5pc of the total 273,000 GWh generated in the country in 2023, according to the Australian Department of Environment. The REZ improves the state's chances of meeting its target of reducing emissions by 50pc from 2005 levels by 2030 through lowering its reliance on coal-fired generation, which accounted for 70pc of fuel used in NSW in May 2024-April 2025. Australia's largest coal-fired power station Origin's 2,880 MW Eraring provides 18pc of the state's electricity and will close in August 2027, around a year before the expected completion of the Central West Orana REZ project. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more