The Options in Decarbonization Pathways for Malaysia

Two activities in Malaysia that emit large amounts of CO2 are electricity generation, and iron and steel production. To decarbonize the former, Malaysia should invest in a flexible energy system to overcome the intermittent characteristic of solar energy by influencing the pattern of demand with peak load pricing, increasing energy storage capability, and entering into a regional electricity grid arrangement. Malaysia should respond to the recent large capacity expansion in iron and steel production with blast furnace-basic oxygen furnace (BF-BOF) technology by ending immediately the issuance of new licenses for facilities that use this BF-BOF technology, and speed up the process of adopting advanced green, near-zero emission technologies (e.g., Hydrogen Breakthrough Ironmaking Technology [HYBRIT]), by applying for foreign technical assistance (e.g., the United Nations Climate Technology Center and Networks [UN-CTCN]) and for concessionary climate finance under the Paris Agreement. Finally, to be consistent with the 1.5 degrees C pathway for the world, Malaysia should aim to commit to achieve peak carbon emissions by 2030 and net zero emissions by 2050.