MGA’s Position on Malaysia’s Energy Transition and Climate Targets
Malaysian Gas Association (MGA), as the lead advocate for the Malaysian gas industry, strongly supports Malaysia’s energy transition and its climate and sustainability targets. We are committed to aligning our advocacy with the country’s goals under the Paris Agreement, including:
- A 45% reduction in Greenhouse Gas Emissions by 2030,
- A 30% reduction in methane emissions by 2030,
- Achieving Net Zero Emissions as early as 2050, and
- Reaching 70% Renewable Energy (RE) installed capacity by 2050.
In the National Energy Transition Roadmap (NETR), six energy transition levers were identified, namely:
- Energy Efficiency,
- Renewable Energy,
- Hydrogen,
- Bioenergy,
- Green Mobility, and
- Carbon Capture.
MGA’s advocacy is guided by the NETR, which provides sustainable pathways for the national energy mix, GHG emission reductions and energy transition initiatives. Among these, Carbon Capture, Utilization and Storage (CCUS) plays a critical role in reducing carbon emissions and ensuring the long-term sustainability of Malaysia’s gas industry value chain.
Additionally, MGA supports the Government’s aspiration to implement a Carbon Tax as a market-based mechanism to incentivise emissions reductions while ensuring the continued competitiveness of Malaysia’s industries in a low carbon future.
As the voice of the gas industry, MGA has consistently contributed to shaping national energy policies, including the National Energy Policy (2022-2040), the 12th Malaysia Plan and the Long-Term Low Emission Development Strategy (LT-LEDS). We also provide strategic industry perspectives on key climate action plans, such as the Nationally Determined Contributions (NDC) Roadmap and the Hydrogen Economy Technology Roadmap (HETR).
MGA continues to support cross-collaboration between various economic sectors and Government Ministries through our participation in national committees, providing industry perspectives to assist the formulation of pragmatic and efficacious policies and action plans.
A strong collaboration between policymakers and industries is vital to ensuring an effective energy transition. In this context, MGA actively participates in national committees and is supportive of other environmental and climate related policies and action plans such as the National Biomass Action Plan, National Energy Efficiency Action Plan (NEEAP), reducing methane emissions and ending routine flaring, which are equally critical in Malaysia’s overall climate strategy.
