Carbon targets in Malaysia: Challenges and Opportunities

Countries and companies across the world are setting increasingly ambitious climate goals. Twenty countries have pledged net zero under the Paris Agreement.

A Climate Risk Disclosure Barometer 2020 study by Ernst & Young notes that over 60% of the 100 public listed companies surveyed in Malaysia reported their commitment to climate action, which includes stepping up disclosures on climate-related risks in governance, strategy and risk management. Most notably perhaps, was home-grown energy firm Petronas declaring in October 2020 that it will be carbon neutral by 2050, making it the first oil company in Asia to set a net zero target. Malaysia’s climate action is guided by the pledge made to the United Nations Framework Convention on Climate Change (UNFCCC), to achieve a 35 per cent cut in the emissions intensity of GDP by 2030, relative to 2005 levels.

While these are encouraging signs, policy and corporate action on carbon reduction…