On July 6, 2021, Shell Malaysia, a subsidiary of Royal Dutch Shell, held an online forum on a booklet entitled “The Tree, The Sky, The Sun: A Pathway towards Malaysia’s Carbon Neutral Future” that shows a pathway for Malaysia to become carbon neutral by 2065. The booklet proposes various measures to reduce CO2 emissions in the country. Dato’ Sri Tuan Ibrahim Tuan Man, Minister of Environment and Water, who attended the forum, announced that the government is preparing guidelines for the voluntary carbon market and a policy on carbon pricing as part of its efforts to combat greenhouse gases.
Aspirational Scenario for Malaysia to become carbon Neutral by 2065
The scenario prepared by Shell Malaysia is intended to achieve low-carbon development by using its unique advantages of trees and the sun. The main measures presented in the booklet to reduce CO2 emissions are as follows:
- Reforestation: 29 million tons of CO2 will be captured annually by planting additional trees on 5.8% of Malaysia’s land.
- Implement carbon pricing: Encourage low-carbon and energy efficient choices by abolishing fuel subsidies while introducing carbon pricing in a phased manner from 2026.
- Improve energy efficiency: Achieve energy efficiency in all sectors by regulations and incentives.
- Intensify electrification: Digitalization enables efficient electric transmission and operation of smart grid systems.
- Promote alternative energy sources: By 2065, solar power will be the largest source of electricity generation in Malaysia while coal-fired power generation will be phased out. In the transportation sector, biofuel will be used instead of oil especially in aviation and shipping, where electrification is difficult. In the 2030s, hydrogen will also be used as a fuel in the industrial and transportation sectors.
“The Tree, The Sky, The Sun: A Pathway towards Malaysia’s Carbon Neutral Future” prepared by Shell Malaysia can be downloaded from the following URL.
The summary of this booklet is available at: