Malaysia’s Energy Transition : The NETR

What It Is: An Introduction 

The National Energy Transition Roadmap (NETR) is a two-part national plan launched by Malaysia’s Ministry of Economy to guide the country towards a greener, low-carbon, and more sustainable future. It outlines how Malaysia will reduce greenhouse gas emissions while ensuring reliable and affordable energy supply for citizens and industries.

The roadmap builds upon earlier national policies, including the Twelfth Malaysia Plan (2021–2025) and the National Energy Policy (2022–2040), both of which laid the foundation for transforming Malaysia’s energy landscape. A key national goal highlighted in these plans is achieving net-zero greenhouse gas (GHG) emissions by 2050.

Key NETR Targets

Energy Efficiency Goals

By improving energy efficiency, Malaysia aims to reduce overall energy consumption compared to a Business-As-Usual (BAU) scenario.

Guiding Principles

Transparency and Governance

Project Evaluation

The NETR aligns with the Climate Change and Principle-Based Taxonomy defined by Bank Negara Malaysia (BNM). Projects are evaluated to ensure it aligns with the Twelfth Malaysia Plan and broader sustainability goals.

The Ministry of Economy has also worked with the Ministry of Natural Resources and Environmental Sustainability (NRES) to review renewable energy policies. Over 100 engagement sessions and consultations were conducted to gather feedback from stakeholders.

Financing

Malaysia estimates that between RM1.2 trillion and RM1.3 trillion in investment will be required by 2050.

The Ministry of Finance (MOF), Bank Negara Malaysia (BNM), and the Securities Commission (SC) are collaborating to explore sustainable financing mechanisms.

Inclusivity

To ensure inclusivity, the Ministry of Economy organised workshops involving government agencies, private sector representatives, and industry associations. The goal is to ensure that the energy transition benefits all Malaysians.

Why Is the NETR Needed?

Climate Change Impacts on Citizens

Malaysia’s energy sector has historically been the largest contributor to national greenhouse gas emissions. While the sector has driven economic growth, it has also contributed to rising emissions.

Climate change is no longer a distant issue.

These impacts affect public health, economic productivity, and quality of life.

The Global Race Toward Net-Zero

Around 140 countries have pledged net-zero commitments, and many have developed concrete policy frameworks.

Not only that, global agreements such as the Paris Agreement increase pressure on Malaysia to transition toward cleaner energy.

The Two Parts of NETR

Part One (Launched 27 July 2023)

Part One introduces 10 flagship catalyst projects structured around

Part Two (Launched 29 August 2023)

Part Two focuses on:

• Malaysia’s low-carbon pathway

• National energy mix planning

• Long-term emissions reduction targets

Who Is Powering Malaysia’s Energy Transition?