Breaking Out of Carbon Lock-In: Malaysia’s Path to Decarbonization

Lawrence Susskind,Jungwoo Chun,Selmah Goldberg,Yasmin Zaerpoor,Jessica A Gordon,Griffin Smith

doi:10.3389/fbuil.2020.00021

Lawrence Susskind, Jungwoo Chun + Show 4 more

Open Access

https://doi.org/10.3389/fbuil.2020.00021

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Abstract

Malaysia has made an ambitious commitment to reduce the intensity of its carbon emissions, notably a 40% reduction (compared to 2005 levels) by 2020 and a 45% reduction (compared to 2005 levels) by 2030. As with other developing countries, Malaysia’s challenge is to decarbonize its energy-centric economy in the face of population growth pressures and substantial levels of poverty. Drawing on extensive interviews with both public and private stakeholders, we examine how Malaysia has launched its transition to a decarbonized development path. Based on our multi-year analysis, we identify key breakout factors, including behavioral transformations, institutional shifts, and action by a broad network of actors that have allowed Malaysia to begin decarbonizing its economy. At the same time, we note that federal-state friction, limited government capacity, the absence of a centralized management agency, the lack of international funding, incipient environmental awareness, and numerous barriers to investment in renewable energy reinforce carbon lock-in. Our analysis suggests ways in which other developing countries can learn from Malaysia’s initial successes and challenges.

Highlights

The Paris Agreement, ratified by 175 countries, calls for limiting global mean temperature rise to below 2◦C, and, ideally, below 1.5◦C (UNFCCC, 2015)
We find that federal-state friction, limited government capacity, the absence of a centralized management agency, the lack of international funding, incipient environmental awareness, and numerous barriers to investment in renewable energy (RE) constrain decarbonization and reinforce carbon lock-in in Malaysia
Malaysia has been an active supporter of global efforts to address climate change since 2009

Summary

INTRODUCTION

The Paris Agreement, ratified by 175 countries, calls for limiting global mean temperature rise to below 2◦C, and, ideally, below 1.5◦C (UNFCCC, 2015). According to an assessment by the International Energy Agency, meeting the Paris Agreement’s goal of limiting global temperature rise to 2◦ by 2050 will require an ambitious set of policy measures, including the rapid phase out of fossil fuel subsidies, a rise in CO2 prices to unprecedented levels, extensive energy market reforms, and stringent low-carbon and energy efficiency mandates (OECD/IEA and IRENA, 2017) It will require nearly 95% of global electricity to come from lowcarbon sources, 70% of new cars to be electric, the entire building stock to be retrofitted, and CO2 intensity of the industrial sector to be 80% lower than it is today (OECD/IEA and IRENA, 2017). Suggestions by the young people involved regarding ways of addressing environment-related challenges include: implementing payment for ecosystem services to allow international bodies, private firms and state governments to pay local communities to manage protected forests sustainably; increasing land-use efficiency in forests and palm plantations to increase their economic viability and sustainability; placing vending kiosks in public spaces where citizens can exchange recyclable goods for points and prizes; and implementing legislation mandating compliance with Environmental Impact Assessment requirements. Malaysia’s adoption of an institutional mechanism like PEMANDU, dedicated to integrating the country’s development and carbon reduction goals, demonstrates how a powerful coordinating entity has the potential to make a significant difference in breaking out of carbon lock-in

CONCLUSION

Findings

ETHICS STATEMENT