Ivan Tan

The launch event was attended by Dato ’ Sri Tuan Ibrahim Tuan Man , ( former ) Minister of Environment and Water and Aart Jacobi , Ambassador of The Netherlands to Malaysia .

The event also featured a roundtable discussion held in collaboration with the Malaysian Dutch Business Council ( MDBC ), CEO Action Network , and Climate Governance Malaysia .

The Tree , The Sky , The Sun tells the story of how Malaysia could reach for the sky – carbon-neutral by 2065 – with its unique advantages of tree and sun . Shell ’ s story illustrates a technically possible yet challenging pathway for Malaysia to meet the goal of the Paris Agreement to keep the rise in global average temperature to well below 2 ° C above pre-industrial levels , with a stretch goal of 1.5 ° C .

Developed by Shell in consultation with key local stakeholders , Shell ’ s pathway was launched at a virtual forum gathering more than 1500 participants and stakeholders from the government , private sector , media , academia , nongovernmental organisations , and energy consumers .

Roundtable discussion

The launch also saw a roundtable discussion by the CEO Action Network , featuring energy leaders and representatives from Shell , The Ministry of Environment and Water , Climate Governance Malaysia , and Boston Consulting Group .

“ It is exciting to see Malaysia having open and more transparent discussions on the true scale of the climate challenge

and the actions needed for achieving carbon-neutrality ,” said Ivan Tan , Chairman of Shell Malaysia .

“ By publishing The Tree , The Sky , The Sun , Shell hopes to contribute to the national conversation about Malaysia ’ s energy transition and the framing of the nation ’ s priorities in the run-up to COP26 and beyond . This is in line with the global ambition embodied in Shell ’ s Powering Progress strategy to become a net-zero emissions4 energy business by 2050 .”

Added Marco Winter , Executive Director of MDBC : “ The Tree , The Sky , The Sun combines policymaking with science-based targets to help us all see the benefits and opportunities of a sustainable future more clearly .

“ The support of everyone – from energy producers to energy consumers – will be critical for achieving the milestones described by Shell ’ s aspirational pathway .

“ We hope the gathering will spur more

informed conversations about how we can all contribute towards building a carbon-neutral energy system for Malaysia and the world .”

The pathway described by The Tree , The Sky , The Sun highlights five critical “ increase levers ” that are likely to have the greatest influence on moderating carbon emissions in Malaysia . These levers are :

• Increase in forest acreage and density .

• Introduction and gradual increase in the carbon price .

• Emphasis on energy efficiency .

• Greater push for electrification .

• More widespread use of renewables , especially solar energy . Shell ’ s aspirational pathway revealed the Malaysian energy system of 2065 would look significantly different from today .

The economy-wide transformation required to achieve a carbon-neutral state would be underpinned by carbon pricing or the external cost of carbon , which is phased in starting from 2026 . It will coincide with the start of the 13th Malaysia Plan ( 2026 – 2030 ). This drives the reallocation of capital and resources toward low-carbon and energy-efficient choices .

Renewable sources of energy

By 2065 , renewable sources of energy will dominate a deeply electrified energy system . Solar has become the country ’ s single largest source of energy , coal has been phased out , while the remaining natural gas in the energy mix acts primarily as a means of supporting the use of renewable energy sources .

Biofuel has displaced oil as the preferred liquid fuel for transportation and is used increasingly to meet the demand of difficult-to-electrify sectors such as aviation and shipping .

Gains in energy efficiency lead to a marginal increase in the country ’ s final energy demand , despite healthy economic growth during this period .

Any remaining emissions from the energy system are removed by nature or technology – reforestation of an additional 5.8 per cent of Malaysia ’ s landmass can capture up to 29 million tonnes of CO2 per year , effectively bringing forward Malaysia ’ s carbon-neutral date by 15 years to 2065 .

Ultimately , the point at which Malaysia achieves carbon-neutrality depends on how aggressively these levers discussed were pursued in steering the economy towards a more sustainable post-pandemic recovery .

Other pathways are possible and depend on societal and policy preferences . Still , a significant shift in how society produces and consumes energy is required to limit the rise in global temperature and address the risks of climate change .

Crucially , it will take robust policy frameworks and more open public engagement to create societal support for action and enable the development of lower-carbon solutions and green technologies .

Strong collaboration across government , business , and society will be crucial to progress at the pace required for Malaysia ’ s energy system to be carbon-neutral by 2065 . — @ green