KUALA LUMPUR (Feb 14): Malaysia should explore green investments to leverage diverse sources of capital which are competitive and in line with environmental, social and governance (ESG) aspects.

The Ministry of Investment, Trade and Industry (Miti) said this is because energy transition efforts require substantial funding, with an estimated expenditure of around RM1.2 trillion to RM1.3 trillion by 2050.

“At the initial stage, for the years 2023 to 2029, it is estimated that RM250 [billion] to RM280 billion is needed to realise this initiative,” the ministry said in a statement.

Malaysia had set clear targets toward achieving net zero carbon emissions as early as 2050, as outlined under the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan 2030 (NIMP).

Realising the importance of green investment contributions to national economic growth, a green investment strategy and implementation steering committee had been set up.

The committee is chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Minister of Energy Transition and Water Transformation.

According to Miti, the committee includes the creation of a legal framework concerning the governance of carbon capture, utilisation, and storage (CCUS).

“The aim is to provide all stakeholders with a clear understanding of Malaysia’s approach to green investment growth.

“This would simultaneously support the aspiration of Malaysia’s net zero carbon emissions by 2050,” said Miti.

In addition, the committee will be conducting a short-term study to ensure a more effective, orderly and systematic implementation of energy transition and green investment, and to include aspects of CCUS.

“This should take into account the government’s recognition of CCUS activities as one of its new green and low-carbon growth strategies,” Miti said.

Meanwhile, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the short-term study will enable the country’s green investment agenda to be more effective, orderly and systematic.

The implementation of the study is complementary to the NIMP, and also the NETR — which identifies a list of green investment opportunities based on six energy transition levers.

The study will also acknowledge green investment priorities, synergies between identified green investment opportunities and sectors, localisation of opportunities, as well as green investment opportunities that will be realised through the formulation of strategies for the existing sector.

The committee consists of representatives from the Ministry of Economy, the Ministry of Finance, the Ministry of Energy Transition and Water Transformation (Petra), the Ministry of Natural Resources and Environmental Sustainability, and the Ministry of Science, Technology and Innovation, while Miti is secretariat to the committee.