Govt to allocate RM2b for national energy transition facility

 

The government will allocate RM2 billion as a seed fund for the national energy transition facility to enable catalytic blended finance, Prime Minister Anwar Ibrahim said today.

He said the facility will enable catalytic blended finance to ensure a seamless flow of financial resources towards energy transition projects that are marginally bankable or yielding below-market returns.

“Considering Malaysia’s current state of immature decarbonisation technologies, our progress will significantly hinge on alternative energy sources and robust regional and international collaboration,” he said in a speech at the launch of the second phase of the National Energy Transition Roadmap in Kuala Lumpur today.

Considering Malaysia’s current state of immature decarbonisation technologies, the country’s progress would significantly hinge on alternative energy sources and robust regional and international collaboration, he said.

“As the paramount challenge in energy transition is financing, it is estimated that an investment of at least RM1.2 trillion between 2023 and 2050 is needed to enable responsible energy transition,” the prime minister said.

Anwar said in this decade alone, the government requires between RM60 billion and RM90 billion to be allocated for crucial projects, including the expansion of public transport, strengthening grid infrastructure, and reskilling of human capital.

He also highlighted energy efficiency as one of the energy transition levers that offers effective long-term solutions to manage energy consumption, thus reducing carbon emissions.

To this end, he said the government will launch a major retrofit programme to enhance energy efficiency in government buildings.

“An Esco (energy service companies) platform will be established to connect private Escos, which are mainly small and medium enterprises, with government projects.

“The central role of the platform would be to serve as an intermediary that pools government building retrofitting projects and encourages public-private coordination in the Esco market,” he added.

Economy Minister Rafizi Ramli

Meanwhile, the government plans to hold the first meeting of the National Energy Council as early as October this year, said Economy Minister Rafizi Ramli.

He said the council, chaired by Anwar and the Economy Ministry as the secretariat, would set forth high-level strategic directions and policies, allowing for the working committees to coordinate and report their progress.

“The establishment of the National Energy Council is the strongest signal yet of the government’s intention of moving beyond blueprints and into the nitty-gritty of implementation,” he said at the same event.

Rafizi said in order to realise economic gains for the country, there are three critical structures that would become the bedrock of the National Energy Transition Roadmap (NETR) ambitions.

He said Malaysia needs strong governance, substantial financing, and a credible and transparent exchange system.

- Bernama