Net-Zero Framework for Malaysia to be Released this Year.
According to Datuk Seri Mustapa Mohamed, Malaysia’s Prime Minister of Economic Affairs, Malaysia is discussing details.
As such, Malaysia is exploring a voluntary carbon market and carbon tax. They are also exploring incentives to expand green technology.
“The details will be out hopefully sometime this year, and that should give us a clearer picture,” said Mustapa.
Malaysia’s ESG goals.
Malaysia wants to reach 30% renewable energy capacity by 2025. They also plan to keep 50% of the nation’s land area as natural forestry.
Their ultimate goal is to reach net-zero emissions by 2050.
Mustapa went on to say that lowering Malaysia’s carbon footprint won’t be easy. However, “To enjoy the benefits of a low carbon path, developing nations such as Malaysia must accelerate its transition to a greener future.”
Malaysia’s Securities Commission is also hoping to drive ESG objectives.
“There have been some positive developments in terms of our ESG compliance as companies have started to realize the importance of ESG,” said Mustapa.
Global net-zero goals.
In 2021, global investments in sustainable funds rose by 53% and totaled $2.7 trillion.
The Voluntary Carbon Market (VCM) boomed as well. Some experts believe it could reach $100 billion by 2030. That’s up from just $300 million in 2018! What’s great about the VCM is that it is open to businesses, non-profits, and individuals alike.
Each offset purchased on the VCM equals one metric ton of carbon “neutralized” through an environmental project.
Though carbon offsets are not the only way to meet net-zero, they certainly play a part. Combine offsets with technological advances, increased regulation, and environmental investments and the future is looking, well – green!
The FTSE4Good Bursa Malaysia Index (which has strict ESG criteria) has over 80 companies.
That figure is up from just 24 in 2014.
So, it appears that companies in Malaysia are on board, too.