Malaysia, like other nations concerned about global warming, has a net zero ambition. Its carbon neutrality target is 2050. But the path there is not going to be a walk in the park. Not because Malaysia started late.
In some things, Malaysia is an early riser. Like in flattening the Earth-warming curve. Perhaps this is why Malaysia isn't one of the 19 countries in the Asia-Pacific region which haven't submitted its Nationally Determined Contribution to COP26.
But having started rather early in 2009 (long before the Paris Accords were signed, it must be said), it lost its agility along the way. Blame it on Malaysia's energy-centric economy. But Putrajaya appears to be getting serious.
If the EAC Dialogue on Tuesday is any signal, the government is preparing the economy for the climate challenge. What with extreme weather events wreaking havoc from Kangar to Kinabatangan. The government is saying "no" to new coal-fired power plants.
Putrajaya is also said to be working on carbon reduction measures and low-carbon development strategies. Next year should see these implemented, if intent is turned into action.
KPMG's inaugural Net Zero Readiness Index (NZRI), released on Oct 14, scores the intent and some action. Out of 32 countries, Malaysia emerged 22nd.
Not a bad score for a country fuelled by an energy-centric economy. But the country has miles to go before it puts carbon emissions to sleep.
Malaysia's electricity- and heat-generating sector, by the reckoning of NZRI, contributes 34 per cent to emissions. This is not surprising as the country uses coal and gas to generate electricity. As it is, Malaysia's installed capacity of coal-powered plants is a worrying 40 per cent of the total capacity.
Malaysia's challenge will be how to decarbonise its energy-centric economy in the face of population growth pressures and poverty outside of urban areas, NZRI quotes Phang Oy Cheng, executive director of Sustainability Advisory, KPMG Malaysia, as saying.
He continues: "The transition to net zero will require not just political will but also significant structural and legislative reforms on a national scale. " Nations among the top 10 of NZRI seemed to have turned net zero ambitions into commitments by adopting such reforms in a whole-of-nation approach.
Malaysia must do the same. Among the players in Malaysia's economy, the financial sector appears to be doing some commendable things.
Bank Negara Malaysia, the country's central bank, is one such player helping to set the pace of the sector. Its Climate Change and Principles-based Taxonomy (CCPT) is one such pace-setter.
The CCPT does several things, but its principal role is to help financial institutions push the transition to a low-carbon economy. Therein lies the limitation of CCPT and instruments like it to decarbonise the world.
Finance companies do not directly cause emissions. So the net-zero pledges by banks may not save Malaysia. What will save the country are the pledges and commitments of companies.
Petronas, Malaysia's oil and gas producer, has taken the lead by saying it will go net zero in 2050. But Malaysia's economy isn't driven by giants alone. The non-giants, otherwise known as small- and medium-scale enterprises, make up the bulk of the economy.
In KPMG's calculation, these enterprises produce three-quarters of Malaysia's industrial output. These must decarbonise. Being "small" and "medium", they will need government show-how. Money and technology-transfer would help, too. Ambition always does well with action.