Carbon targets in Malaysia: Challenges and Opportunities
Countries and companies across the world are setting increasingly ambitious climate goals. Twenty countries have pledged net zero under the Paris Agreement.
A Climate Risk Disclosure Barometer 2020 study by Ernst & Young notes that over 60% of the 100 public listed companies surveyed in Malaysia reported their commitment to climate action, which includes stepping up disclosures on climate-related risks in governance, strategy and risk management. Most notably perhaps, was homegrown energy firm Petronas declaring in October 2020 that it will be carbon neutral by 2050, making it the first oil company in Asia to set a net zero target. Malaysia’s climate action is guided by the pledge made to the United Nations Framework Convention on Climate Change (UNFCCC), to achieve a 35 per cent cut in the emissions intensity of GDP by 2030, relative to 2005 levels.
While these are encouraging signs, policy and corporate action on carbon reduction targets remain patchy. Out of more than 1,200 companies that have signed up to the Science-Based Targets initiative (SBTi), only three are Malaysian companies.
How far along is Malaysia in achieving its carbon targets? What are the barriers to companies setting carbon targets and the opportunities in achieving these targets, and how can public-private partnerships play a role?
On 29 June 2021, Eco-Business will convene the leading thinkers and decision makers for a public discussion on the current and future state of the carbon targets landscape in Malaysia.