ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
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• the Carbon Pricing Instrument developed by the Ministry of Finance ( MOF )
• the National ESG Industry Framework , the New Industrial Master Plan ( NIMP ) and the Chemical Industry Roadmap ( CIR ) by the Ministry of Investment , Trade and Industry ( MITI )
• the Hydrogen Economy and Technology Roadmap ( HETR ) by the Ministry of Science , Technology and Innovation ( MOSTI )
• the National Biomass Action Plan by the Ministry of Plantation and Commodities ( KPK ).
Each utility company in Malaysia has also formulated its strategic plans for the future . TNB , serving Peninsular Malaysia , has set a target to achieve 20 per cent RE capacity by 2025 and has expressed its commitment to reaching net zero emissions by 2050 .
To attain this goal , TNB is implementing a sustainable approach , including a 35 per cent reduction in emission intensity and a 50 per cent reduction in coal generation capacity by 2035 .
Other initiatives from the government include the use of the Incentive- Based Regulation ( IBR ) mechanism ( a tariff price-setting mechanism for affordable and secure energy supply in a deregulated market ), an optimal generation expansion plan ( to improve service reliability at minimal cost ), least-cost dispatch ( to promote market liberalisation to reduce transmission and distribution costs ) and fuel portfolio diversification ( to balance affordable electricity and energy security ).•