12th Plan Malaysia: What you need to know about the 2050 carbon neutral target and other green measures


KUALA LUMPUR: Prime Minister Ismail Sabri Yaakob tabled Malaysia’s 12th plan (12 MPs) in parliament on Monday, September 27, with a pledge for Malaysia to “become a carbon neutral country by 2050 at the earliest” listed alongside other measures to accelerate green growth.

In his parliamentary speech, he said that although Malaysia contributes only 0.7% of global greenhouse gas emissions, the government will continue to deliver on its commitment to reduce greenhouse gas emissions intensity. greenhouse GDP of 45% by 2030.

This would be based on the intensity of emissions of the GDP in 2005, in accordance with the Paris Agreement in 2015. The intensity of greenhouse gases is the ratio between a country’s emissions and the economic value that ‘it generates.

“Today, I pledge that Malaysia will become a carbon neutral country by 2050 at the earliest,” Ismail Sabri said on Monday.

“Further details regarding carbon reduction measures will be announced after the finalization of the long-term strategic review of low-carbon development strategies by the end of 2022,” he added. .

Carbon neutrality means that any carbon dioxide released into the atmosphere is offset by an equivalent amount removed.

On paper, Malaysia’s carbon neutral pledge appears to be the most ambitious in Southeast Asia.

Indonesia has pledged to achieve net zero emissions by 2060, while Thailand has said it aims to achieve carbon neutrality by 2065-2070.

Meanwhile, Singapore has announced that it will halve its peak greenhouse gas emissions in 2030 by 2050 and achieve net zero emissions “as soon as possible” in the second half of the century.

Along with Malaysia’s goal of carbon neutrality in 2050, various policies to accelerate green growth would be put in place. Here are the key announcements:


The prime minister promised that the government would no longer build new coal-fired power plants.

He added that a comprehensive national energy policy would soon be introduced to provide long-term strategic direction to support the aspirations of a carbon neutral nation.

“Cleaner power generation will be implemented through the operation of several gas-fired power plants in Peninsular Malaysia to replace coal-fired power plants,” he said.

An energy efficiency and conservation law would be introduced to regulate the energy consumption of high-intensity consumers in the industrial and commercial sectors, Mr. Ismail Sabri said.

The production of renewable energy from solar energy, biomass and biogas is expected to reach 31% of the total installed capacity in the country by 2025, he said.

In addition, a total of 120 cities are expected to achieve sustainable city status by 2025.


Mr. Ismail Sabri said economic instruments such as carbon pricing and carbon tax would be implemented. He did not go into details.

Earlier this month, Environment Minister Tuan Ibrahim Tuan Man said by Bernama that an Emissions Trading System (DETS) was being developed by the Environment Ministry and some water.

He said the development of the trading system will be carried out jointly with the Ministry of Finance, Bursa Malaysia and other stakeholders.

The minister said the government plans to implement DETS in phases and that a single business platform will be developed.

State government authorities and the private sector could leverage DETS to execute carbon credit transactions at the national level. In comparison, trading in the international market would result in a high transaction cost and more stringent technical requirements, he said, according to the Bernama report.

Emissions trading, as set out in Article 17 of the Kyoto Protocol, allows countries that have emission units in reserve – emissions that are allowed to them but not used – to sell that capacity. surplus to countries that exceed their targets.

Plans for a new exchange and a global carbon market to be headquartered in Singapore were recently unveiled.

Among other carbon pricing approaches, a tax can also be levied on greenhouse gas emissions to induce polluters to reduce the burning of fossil fuels.

In the case of Singapore, for example, it imposed a carbon tax rate of S $ 5 per tonne of greenhouse gas emissions from 2019 to 2023. This rate is expected to be increased in the future.


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