From 1990 to 2016, the emissions from energy sector have been increased at an average rate of 5.4% per year from 1990 to 2016 . The highest emissions were from the energy industries with average annual growth rate of 6.4% and mainly from electricity generation .This followed by the transport sector with an average annual growth rate of 5.9% from 1990 to 2016.However, the growth rates for both had slowed down in the past few years. It is seen that the decrease in emissions from the manufacturing industry and construction from 2008 onwards is contributed by the sector’s shift from coal fuel consumption to electricity consumption. It is also due to the increase in energy efficiency practices and adoption of the sector. The emissions from the oil and gas industries have grown at the average rate of 5.1% per year from 1990 to 2016 also slowed down trends in the past the past few years.

Meanwhile, for the energy consumption, it is classified according to type of sector namely transport, industrial, residential and commercial, non-energy use and agriculture.

At the 15th Conference of Parties in Copenhagen, Malaysia has announced that it would voluntarily to reduce its emissions intensity of gross domestic product (GDP) by up to 40% by 2020 based on 2005 levels. However, this commitment comes with condition about the technology transfer and financial support from developed countries. This commitment indicated the intention to reduce greenhouse gas (GHG) emissions as a part of sustainable development.

Then, on 16th November 2016, Malaysia has ratified the Paris Agreement and has committed to contribute to the implementation and achievement of the goals of the Paris Agreement. Therefore, Malaysia submitted its Intended Nationally Determined Contribution (INDC) to the UNFCCC in 2015 to declare and formalized it commitment . The intention declared by Malaysia is to reduce its economy-wide carbon intensity (against GDP) of 45% in 2030 compared to 2005 level as the baseline year.

In the updated Nationally Determined Contribution (NDC) report by Malaysia to UNFCCC for year 2020, Malaysia has revised the target value with the increase to 45% of carbon intensity reduction at unconditional with the additional 10% from the earlier value. At the same time, the GHG coverage is expanded to seven greenhouse gasses namely Carbon dioxide, Methane, Nitrous oxide, Hydrofluorocarbons , Perfluorocarbon , Sulphur hexafluoride and Nitrogen trifluoride.

Malaysia has reported to UNFCCC the achievement in term of emission avoidance in 2016 from initiatives at each sub-sector in the energy sector. Key major sub-sector identified in initiatives implemented are renewable energy, energy efficiency and transportation. Other sectors reported are waste and forestry. Key mitigation actions in the renewable energy are feed-in tariff, hydropower and other renewable energy by public and private licensees and each has achieved emission avoidance at 562.52 Gg CO2eq, 6570.15 Gg CO2eq and 231.91 Gg CO2eq respectively.

From the energy efficiency, the implementation of National Energy Efficiency Action Plan(NEEAP) resulted in 458.02 Gg CO2eq avoidance. For the transport sector, the rail based public transport has achieved 212.93 Gg CO2eq , the use of energy efficient vehicles has achieved 90.65 Gg CO2eq , the use of palm-based in blended petroleum diesel has achieved 1,127.34 Gg CO2eq and the use of natural gas in vehicles has achieved 114.77 Gg CO2eq . For the waste sector, paper recycling and biogas recovery from palm oil mill effluent has achieved 3,937.76 Gg CO2eq and 2,377.84 Gg CO2eq avoidance respectively. In the forestry, the reducing deforestation , sustainable management of forest and conservation of carbon stock has achieved 20,307.50 Gg CO2eq avoidance.

Energy sector is often classified into two areas which are supply side and the demand side. The supply side is referring to the supply of energy in the form of primary and secondary energy and the demand side mainly referring the users of energy. For the supply side of energy sector, the CO2 emission reduction can be achieved from the use of lesser fossil fuels such as petroleum, the use of greener or energy efficient process of extracting and converting the primary energy sources into secondary energy and the use energy from renewable sources such as solar, bioenergy and hydropower. Meanwhile, at the demand side, CO2 emissions reduction can be achieved from energy efficiency at all energy using sectors such as industrial, commercial and residential buildings and transportation.

Many initiatives have been implemented by Malaysia at the demand side of energy sector which mainly focusing on energy efficiency. These initiatives have been undertaken to promote the adoption of energy efficiency measures and strategies with international assistance programs since 1998 . However , the outcomes or impacts on the nation’s energy supply and demand planning have not been monitored, quantified and reported. During the early stages, those initiatives had been conducted on project-based approaches with a lack of synergy between them, and without any integrated plan for the continuation of the activities after the project periods ended.  Below are major initiatives that have been taken by Malaysia with regard to reduce CO2 emission from energy efficiency.

Malaysian Industrial Energy Efficiency Improvement Project

Implemented in 2000 to 2007 and aimed at promoting energy efficiency within the industrial sector and focused on energy auditing of industrial facilities, demonstration projects, rating of highly efficient equipment and increase awareness among industrial consumers on energy efficiency.

Fiscal Incentives for Energy Efficiency and Green Buildings

Introduced several fiscal incentives in the form of taxes and import duties exemption since early 2000s to promote energy efficiency projects and the purchase of energy efficient equipment by businesses.

Electricity Supply Act 1990 and the Electricity Supply Act (Amendment) 2001

The addition of provisions on efficient use of electricity in section 23A on standards, specifications, practices and measures to be adopted and any other matters in respect of the efficient use of electricity, section 23B on the need for the installation meets such requirements as may be prescribed in respect of the efficient use of electricity and section 23C on the manufacturing, importing, selling or offering for sale or lease any equipment unless the equipment meets such requirements as may be prescribed in respect of the efficient use of electricity.

The establishment of Centre for Education and Training in Renewable and Energy Efficiency

Located in the campus of Universiti Sains Malaysia in Penang and primarily focuses to increase awareness on energy efficiency and renewable energy among school children and students.

Energy Efficient Demonstration Projects and Programs for Buildings

The government has constructed three energy efficient buildings to serve as model buildings which could be replicated by the construction industry such the Low Energy Office, the Green Energy Office and the Diamond Building. Energy Efficiency in Government Buildings program was introduced in 2013 to promote energy efficiency in government operations through energy audits and good practices. Green building rating schemes also introduced with the aim is to promote the efficient use of resources, particularly of energy and water leading to GHG emission reductions such as the Malaysian Carbon Reduction and Environmental Sustainability Tool and Green Performance Assessment System for government buildings and Green Building Index and Green RE for private buildings.

The National Energy Efficiency Master Plan Study and The National Energy Efficiency Action Plan.

The National Energy Efficiency Master Plan Study completed in 2010 and findings and recommendations from this study has been used to as the main reference in the National Energy Efficiency Action Plan(NEEAP) approved in 2015. The NEEAP document outlined the strategy for the implementation of energy efficiency measures in the industrial, commercial and residential sectors and introduced and targeted to save 52,233 GWh of electricity or about electricity demand growth reduction 8.0% at the end of the plan from 2016 to 2025.

The Building Sector Energy Efficiency Project

This is a national project, supported by project is on Promoted energy efficiency in residential and commercial buildings to reduce the growth rate of GHG emissions from the building sector in Malaysia

The Green Technology Financing Scheme

Launched on 2010 to support investment in green technology projects in Malaysia which includes EE initiatives where the Government bears 2% of the total interest rate provides a guarantee of 60% on the financing amount via Credit Guarantee Corporation Malaysia Bhd.

Efficient Management of Electrical Energy Regulations 2008

This law effective from 15 December 2008 and has been an initial legal instrument being enforced to ensure management of energy intensive installations in Peninsular Malaysia and Sabah. However, this law only covers electrical energy.

Introduction of Minimum Energy Performance Standard and Mandatory Star Rating Energy Label

Minimum Energy Performance Standard and Star Energy Label were introduced by the Energy Commission in 2005 on voluntary basis through a nation-wide promotion campaign and has become mandatory for selected electrical appliances, materials and equipment.

Energy Audit Conditional Grant for Government, Commercial and Industrial Buildings

Introduced in the 11th Malaysia Plan and extended into the 12th Malaysia Plan for industrial and building sectors. During the 11th Malaysia Plan, 109 commercial buildings and 108 industries participated under the program where audits and subsequent energy efficiency improvement efforts were carried out in stages for a period of 3 years from the date of energy audit completion.

Since 2018, the government has started the process to draft a new act dedicated for energy efficiency implementation for targeted users and it will cover electrical and thermal energy. This is also one of the key recommendation made in the National Energy Efficiency Master Plan Study in 2019-2010.As in 2021, the draft is already at the Attorney General office and key stakeholders have been informed it would be tabled to the parliament soon for the debate and approval. With effective and holistic enforcement, this very long-awaited act would be able to increase the adoption of energy efficiency which will result in reduction of more CO2 by energy users in Malaysia.

Based on the initiatives taken so far, Malaysia has done a lot in its efforts to reduce the CO2 emission especially at the demand side of energy sector. However , there are still many areas for improvement and below are some areas that need to be addressed to have more sustainable and holistic approach in the implementation at the demand side of the energy sector. Below are some of those areas.

• The holistic governance of energy efficiency at the national level covering a dedicate energy efficiency policy, legislation, sustainable funding sources, a dedicated and accountable entity, methodologies and guidelines for the energy efficiency strategies and initiatives implementation and monitoring of implementation, verification and reporting of progress and results for each
• Evaluation and reviews by the accountable key stakeholders the energy efficiency initiatives and strategies for the implementation purposes.
• To conduct the techno-economic modelling assessment for simulating the energy efficiency initiatives.
• Assess successful international experience and recommend suitable awareness and communication programs and research and development that Malaysia can profitably pursue
• Assessment and recommendations for a comprehensive on-going awareness and communications programs that can be attractive and cost-effective strategies to accelerate the widespread adoption of energy efficiency measures.

Efforts to reduce CO2 emission must be contributed by all segments of society and all type of industries. Each energy unit we saved will be another unit of CO2 can be avoided to the environment that will affect our life today and in years to come since all of us are sharing the same earth and sky. The government can do their parts and we can do ours too. So, let’s do it and stop wasting energy even though we don’t have any problem to pay for it.

REFERENCES

1. Malaysia Third Biennial Update Report to The UNFCCC , December 2020
2. Demand Side Management Preliminary Study Report, Ministry of Energy, Green Technology and Climate Change ,2019
3. National Energy Balance Report 2018, Energy Commission