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Meanwhile , energy efficiency and renewable energy will make our businesses and nation more efficient and productive . Done right , businesses only need to pay a minuscule amount on carbon offset to go net zero , allowing our businesses to be internationally competitive .
With the current policy , we risk losing out on the knowledge and experience gained from pursuing Net Zero aggressively via energy efficiency and renewable energy . We risk being left with unmarketable skills by 2040 because we are still clinging to fossil fuels .
Scrutinising the proposed roadmap ( Implementation of LCNA 2040 ) is equally disappointing . The only consolation is that it matched the projected energy mix by 2040 .
Dissecting the proposed roadmap :
2021-2025 Implementation
• Improving rural electricity supply and
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power reliability in Sabah : Yes , we must ensure everyone in Malaysia has fair access to reliable electricity . I am surprised that we are not there yet , and that it is still a national aspiration .
• Enforcement of EECA and minimum energy performance standards :
I have mixed feelings about EECA . It requires facilities to do energy audits . Sudden enforcement of EECA on all medium and large facilities will create too high a demand for an energy audit . Supply inadequacy will drive up energy audit costs and reduce the quality of work . Spending money without justifiable return will reduce our national competitiveness .
Moreover , the EECA is an outdated approach . By 2050 , the world must achieve Net Zero . In a Net Zero scenario , every facility must be retrofitted entirely with top-notch energy efficiency ( marginal improvement is no longer enough ) and use every opportunity for renewable energy .
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The remaining energy requirement will need carbon offset to go Net Zero . Again , carbon offset is expensive for the private sector . Overspending on carbon offset will increase the cost of production , causing us to be uncompetitive .
Unlike energy efficiency and renewable energy , a carbon offset is a tax with no payback or return . A carbon offset is also paid annually . If we do not pay for a carbon offset , our products will not be Net Zero ( with 92 per cent dirty energy ) and may be subjected to trade barriers .
Instead of energy audits , I recommend shifting the focus to “ Retrofitting to Net Zero ”. An energy audit often ends up as a report collecting dust on a shelve , while a retrofit ensures actions are taken after an audit . A Net Zero target will force us to rethink existing practices – leading to more innovations . It was often said , “ Necessity is the mother of invention ”.
By pushing for Net Zero today , it will drive the innovation needed tomorrow . With innovations , Malaysia will be in line to be the next high-income nation .
• Improve fuel economy for vehicles : I doubt that our population of 30 million can push car manufacturers to improve their vehicle fuel economy . Car manufacturers worldwide are already driven by more advanced ( and far more prosperous ) countries to reduce carbon emissions . It is not a wise strategy for our government to be spending any money on this because we will be spending our taxpayer ’ s money on companies for them to do the same thing they would have done , with or without incentives .
However , it is a wise strategy to educate our population on our choices of transportation , choices of vehicles , and our driving style / personality on fuel economy . The public awareness programme is the best bang for our buck to drive efficiency in transportation .
2026 to 2030 Implementation
• Development of gas supply and petrochemical hub .
• Boost gas market and regasification terminal .
• Expanding gas field exploration .
• Increase LNG market share . As far as I know , natural gas is a fossil fuel . Our national policy from 2026 to 2030 is to promote the use of natural gas by increasing gas field exploration and improving the supply chain .
Since natural gas has the lowest carbon factor among fossil fuels , there may be an increased demand for gas as a temporary replacement to power existing power plants . It would serve as an interim solution to reduce carbon emissions while allowing these plants to ease into retirement . Short-term , this policy does make financial sense , but it is a policy that goes directly against International Energy Agency ( IEA ) recommendations for a net zero future by 2050 .
“… the IEA “ explicitly expressed alarm about the danger of developing any new oil and gas projects globally ,” the two authors add . “ It emphasised not developing any new oil and gas projects if the world wants to reach net zero by 2050 .” - IT ’ S THE END OF OIL : Blockbuster IEA Report Urges No New Fossil Development ( theenergymix . com ), 2021
Based on these facts , I have these questions :
• Should we not align our national policy with the global need to stabilise climate change ? Would this short-term financial gain be a good enough reason for Malaysia to disregard climate change ?
• Are we not investing in a sunset industry ? Electricity from solar photovoltaics is already cheaper than from fossil
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A carbon offset is costly because it is an unnecessary annual tax to do business . Meanwhile , energy efficiency and renewable energy will make our businesses and nation more efficient and productive . Done right , businesses only need to pay a minuscule amount on carbon offset to go net zero , allowing our businesses to be internationally competitive .” |