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Implentation of National Low Carbon Aspiration 2040 plan will expand average GDP growth by RM13 bil annually

The holistic implementation of the National Low Carbon Aspiration 2040 plan is expected to expand gross domestic product growth (GDP) by RM13 billion a year and generate over 207,000 jobs.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the aspiration under the National Energy Policy 2022-2040 (DTN) that was launched on Monday (Sept 19) will help the country achieve net zero gas house emissions (GHG ) in 2050, as it faces the challenges of energy transition and climate change.

The aspiration has nine targets to be achieved by 2040, among them being shared mode of public transport of 50%, use of electric vehicles (EVs) of 38%; use of the B30 mixed fuel for heavy vehicles as an alternative fuel, as well as energy savings of 11% for industry and commercial use and 10% for residential use.

“The government is confident that the DTN is capable of ensuring that the energy sector is always ready to face future challenges.

“The sector is poised to open a new chapter, in line with global trends that have seen new sectors that are low carbon such as the use of EVs and new energy sources such as hydrogen and bio-based energy,” the premier said at the launch of the DTN here.

To achieve the vision and objective of DTN, he said 12 strategies and 31 action plans have been identified, to be implemented in the short, medium, and long term, in parallel with the implementation of the Five-Year Malaysia Plan.

The government has also agreed to set up the National Energy Council (MTN) to oversee the implementation of the new energy policy.

“I will chair the National Energy Council to ensure that DTN initiatives are implemented effectively by the various ministries and agencies, based on accountability and their respective roles,” Ismail Sabri said.

The DTN is a “living document” that will be updated every three years by the MTN, in accordance with factors such as technological advances, socio-socioeconomic levels, and the balance of energy sources, he added.

“The government is now focusing on the development of EVs by offering various tax incentives to encourage activities such as assembly, production of components, as well as green technology services.

“It has also set up an EV Taskforce to develop and promote the local EV industry,” the prime minister said, adding that four areas of the sector have become the main focus, namely expanding the use of EVs, developing charging infrastructure, developing talent, and attracting investments.

“Up to now, over 600 EV charging facilities have been installed nationwide and will be further enhanced via initiatives from companies such as TNB and Petronas, on cooperation agreements with them,” he said.

To drive the development of hydrogen, Ismail Sabri said the government is finalising the Technology and Hydrogen Economy Roadmap.

“The government has also redistributed the renewable energy quota of 1,200 megawatts to drive the generation of green hydrogen. At present, Petronas is also working with various quarters on hydrogen generation,” he added.

Meanwhile, Minister in the Prime Minister Department (Economy) Datuk Seri Mustapa Mohamed said the DTN is aligned with the country’s commitments toward Sustainable Development Goal 7, which is ensuring access to energy that is affordable, sustainable and modern for all, in facing the energy trilemma of ensuring supply, affordability and sustainability.

  • The Edge Markets