KUALA LUMPUR (Sept 27): Malaysia is committed to its target of becoming a carbon-neutral nation by as early as 2050, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

He said efforts to accelerate the growth of green economy, boost energy sustainability and transform the water sector must remain at the core of the country's socio-economic development.

The government will take into account environmental, social, and governance (ESG) principles in its decision-making process, he added when tabling the 12th Malaysia Plan (12MP) 2021-2025 in Parliament on Monday.

Ismail Sabri said economic instruments such as carbon pricing and the carbon tax will be introduced to support this effort.

“Details of other measures for carbon reduction will be announced once the low-carbon long-term development strategy study is finalised by the end of 2022. The government has [also] given a commitment to stop building new coal-fired power plants.

“I realise this requires a concerted effort as well as a high level of green commitment and investment. However, I am confident that with the involvement of the Malaysian Family spirit, this goal is not an empty dream and this commitment will ensure that Malaysia matches the efforts of other countries to achieve global goals in combating climate change and step up the country's competitiveness,” he said.

Although Malaysia contributes less than 0.7% of the greenhouse gas emissions, the prime minister said the government will continue to fulfil its commitments to reduce the greenhouse gas emissions intensity of gross domestic product (GDP) by 45% in 2030, based on the intensity of emissions as at 2005, in line with the aspiration to become a low-carbon country.

“I welcome the initiatives of the private sector in committing to achieve net-zero carbon emissions including the commitment of GLCs [government-linked companies] and GLICs [government-linked investment companies] such as Petronas, Tenaga Nasional Bhd, Sarawak Energy Bhd and Employees Provident Fund to achieve this target by 2050.

“I urge other companies to emulate this initiative by making the same commitment. This step will become increasingly important as trading partners, capital markets and financial institutions make compliance with ESG principles a condition of investment decisions and the production of their products,” he added.

Source: The Edge Markets