INDC and Low-Carbon Technology Deployment Scenarios: Malaysia

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.