While Malaysia has pledged an ambitious 70 per cent renewable energy target by 2050, mobilising investments in the grid and utilising “quick wins” may be key to realising goals while awaiting sectoral reforms.
At COP29, the city-state unveiled a third investment theme to decarbonise hard-to-abate sectors under its national blended finance scheme and pledged to match partner concessional capital dollar-for-dollar.
The survey of energy executives in Southeast Asia found uncertainty over the effectiveness of carbon pricing and trading in reducing emissions. Better carbon accounting and transparent regulatory frameworks need to be in place to solidify Singapore's claim to be Asia's carbon hub.
Regulation is a crucial factor that investors consider before funding carbon projects, experts said at a recent event in Malaysia. Developers argue that the system does not need to be perfect to kickstart projects.