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Ways to Work With Us
www.malaysiasca.org
Let’s Collaborate !
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Table of CONTENTS
04 Upfront with Chairman 05 Cover Story
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Malaysia Commits to Smart City Development
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Pantas Climate Solution
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Decarbonisation
13 Smart Cities Matters 18 Members’ Insight 39 Activities 57 Welcome New Member 58 Upcoming Events
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Investing In A Sustainable Future : ESG Strategies For Decarbonisation Understanding Greenhouse Gas Emissions Measurement in Cities Are electric cars better for the environment and people? Environmental, social and governance (ESG) & Energy: Powerful Pair for Sustainable Future
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UPFRONT with
Chairman of MSCA
Assalamualaikum, Greetings from MSCA! First and foremost, I would like to extend a warm welcome to our newest members. I believe that with increased cooperation and support, MSCA can play a larger role in spearheading smart city implementation in Malaysia. The climate change has clearly become a business issue. Change is being driven by policymakers through regulation, funding, and financial incentives. Corporates, on the other hand, are providing their own impetus by rethinking their business models in line with stronger Environmental, Social, and Corporate Governance (ESG) strategies. Despite widespread agreement that change is necessary, forming the partnerships and working together to bring it about can be difficult because it calls for the balancing of many different interests and priorities. New relationships will need to be established across sectors.
This newsletter brings about decarbonisation theme that instead of discussing environmental problems at length, it focuses on potential solutions with cities at the core. This newsletter also will keep everyone informed on MSCA latest news, activities and upcoming events. I hope that everyone will benefit and share knowledge and know-how so that we can work together to accelerate smart city implementation in Malaysia. Sincerely, Ts. Dr. Raslan Ahmad, FASc Chairman of MSCA
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Cover Story Malaysia Commits to Smart City Development
The growing pains of urbanisation compelled governments all over the world including Malaysia to consider using technology to help alleviate the major challenges that cities face. Despite the fact that the technology is readily available, the majority of smart city projects had only modest success. There are risks involved, as there are with anything new. But taking action requires a little courage and a leap of faith. Smart city journey must start with proper planning that is development of blueprint and action plan. The significant of having Smart City Blueprint/Action Plan are as follows; • Shared vision and aspirations to accelerate smart city implementation • Roadmap for smart city projects and initiatives implementation by phase and systematically – Quick Win projects, Short Term, Medium Term and Long Terms initiatives • Provide a platform for cooperation with stakeholders and strategic partners in smart city development • Urban indicators to measure achievement and performance level of the city • Continuous Monitoring and Evaluation Tool for smart city initiatives Following shows snapshot of the Strategic Plan by Ministry of Local Government Development (KPKT) and target set for development of Smart City Action Plan among PBTs in Malaysia;
Current Status
Strategic Thrust 2 : Local government transformation towards smart & sustainable development Strategy 2.1 : Carrying out innovation through localising SDG and implementing smart cities at the PBT level
26 PBT
19 PBT Completed 7 PBT in progress
In mobilisation stage/early planning
9 PBT
26 PBT
Not implemented yet
Target: 61 PBTs to develop smart city action plan by 2025
Furthermore, the Malaysian Industry-Government Group for High Technology (MIGHT) provides strategic facilitation through its F.I.R.S.T TM Matrix methodology, which can aid in the process of developing blueprints comprehensively by deliberating elements of Funding, Infrastructure, Regulatory, Skills & Talents, and Technology in order to establish connected and integrated city systems for forward-thinking city governance.
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Source: https://might.org.my/ Improving the quality of life in cities is necessary however, not all cities are smart, and it is challenging to implement for brownfield area. Although several cities in the world are adhering to the smart city concept, there are no standards in the practices to identify the set of characteristics and processes that make a city smart, or in which level of performance it fits. Therefore, KPKT and PlanMalaysia has outline the smart city maturity journey to evaluate cities in Malaysia and measure level of ‘smartness’ that allows better understanding in developing each action plan. At the moment, emphasis is being placed on moving more cities up to Level 1 - early adopter smart city status, with target of 61 PBTs to develop smart city action plan by 2025.
Source: www.planmalaysia.gov.my
MALAYSIA SMART CITY RATING A rating system has been developed to recognised PBT's efforts to speed up the implementation of smart cities. As of now, the following main criteria for smart city early adopters have been highlighted at all PBTs; • Blueprint development or Smart City Action Plan (20% marks) • Establishment of Unit/Committee Smart City (Smart City) at PBT level (10% marks) • Initial Development Dashboard/ Mini Command Center (20% marks) • Compliance with 10 indicators MS ISO 37122:2019 (50% marks)
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•Successfully execute all initiatives through the Smart City Action Plan •Smart City Committee Unit or Division or SME •Advanced Command Center with machine modelling •Compliance with 85 indicators MS ISO 37122:2019
•Implement initiatives through the Smart City Action Plan •Smart City Committee Unit or Division •Integrated Command Center •Compliance with 35 indicators MS ISO 37122:2019
•Partial of big initiatives through the Smart City Action Plan •Smart City Committee Unit or Division •Advanced Command Center •Compliance with 63 indicators MS ISO 37122:2019
•Smart City Action Plan •Smart City Committee •Initial Dashboard / Mini Command Center •Compliance with 10 indicators MS ISO 37122:2019
Source: www.planmalaysia.gov.my
Smart city solutions must play an important role support cities in achieving sustainable development goals (SDGs) by helping stakeholders to monitor the state and managing progress towards achieving the SDGs. After a decade of smart city implementation, city leaders are realising that smart-city strategies start with people, not technology. “Smartness” is not just about installing digital interfaces in traditional infrastructure or streamlining city operations. It is also about using technology and data purposefully to make better decisions and deliver a better quality of life.
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Pantas Climate Solutions: Carbon Emission Management, Disclosure and Reduction Solution By Pantas Software Sdn Bhd
What is Carbon Emission (GHG Emissions) Accounting? Carbon Emission Accounting refers to the process of measuring, managing, and disclosing a company's greenhouse gas (GHG) emissions. The calculation approach needs to be based on internationally recognized guidelines such as the Greenhouse Gas Protocol ("GHG Protocol"). The concept of carbon accounting is not new; in fact, it has been around since its establishment in 1997 under the Kyoto Protocol, which was the first international treaty for GHG reductions. The GHG Protocol is an established and comprehensive global standardized framework to measure and manage greenhouse gas (GHG) emissions. It is the most widely used GHG accounting standard in theworld. Once a company's carbon emissions have been measured, they need to be disclosed according to local or international reporting standards, frameworks, or guidelines set by the respective regulatory bodies applicable to the company. For example, the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI) Standards, and many other specific reporting standards. There are also specific reporting requirements set by international reporting databases such as CDP (previously known as Carbon Disclosure Project) and the Science Based Targets initiative (SBTi).
Listed companies ("Listcos") in Malaysia should be familiar with the term "ESG" (Environmental, Social, and Governance). Bursa Malaysia mandates Listcos to conduct a Materiality Assessment and determine the salient and material issues faced by a company, along with methods of mitigation. Each component of ESG encompasses crucial aspects of a company's operation and its impact on various stakeholders. Most importantly, greenhouse gas emissions fall under the Environment scope of ESG, making carbon accounting even more critical to the growth and success of an organization.
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Regulations surrounding Carbon Emission Disclosure In September 2022, Bursa Malaysia announces the enhanced sustainability reporting requirements which mandates carbon emissions disclosure for all main market companies for FYE or after 31st December 2024 (1) within their annual report as part of their sustainability statement.
Summary of the data and performance targets disclosed as part of Sustainability Statement for the past 3 years for each material indicator (3)
Emphasised that climate disclosure should align with TCFD recommendations for FYE on or after 31 December 2023
GHG emissions should be disclosed by international standards Scope 1, 2 and 3 (at least on business travel
Summary of Bursa's enhanced sustainability reporting requirements .
and employee commuting (2)
While listed companies are facing direct local regulations, non-listed companies (SMEs or large corporations) may be indirectly facing regulations in order for them to conduct business. For example, if the company exports to regulated markets, supply to companies that export to regulated markets or are customers to regulated financial institutions, they will be required to perform carbon emissions disclosures.
Some examples of regulations that might impact non-listed companies or SMEs
Pantas has observed an increasing number of regulations implemented across the region, and they strongly believe that as market regulations for larger corporations mature, local regulatory bodies will eventually consider mandating carbon emission disclosures for SMEs and non-listed companies. Ignoring this imminent shift could result in significant business opportunity cost, financial, and reputational losses. This can be further amplified by looming implementation of regional cross-border carbon tax and regulations.
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In addition to these benefits, carbon reporting helps organizations to: ● Gain access to sustainability-linked financing ● Promote and rebrand their identity ● Protect their business against fluctuations in the regulatory environment ● Make energy-efficient alterations that prove to be cost-effective in the long run ● Understand where there is the most potential for carbon emission reduction ● Build resilience across their supply chains
The Importance of Initiating Carbon Reporting for Companies Carbon reporting is integral as it enables businesses to effectively navigate the regulatory landscape and avoid potential risks that can arise from non-compliance. More importantly, it enables businesses to identify carbon emission hotspots in their operations and implement strategies and technologies to decarbonize. These efforts may include adopting more cost-saving and energy-efficient technologies, implementing waste management policies, reducing fuel consumption, and undertaking other green initiatives that can prove beneficial to the company, both financially and environmentally. For larger companies, supply chain management can be extremely challenging. Carbon reporting in this instance is highly advantageous as it can improve the resilience of the company's supply chain, which is especially vulnerable to regulatory risks. Not only does this future- proof the business, but it also enables the company to position itself as a thought leader in the industry, which is appealing to investors and consumers alike. It opens opportunities to access growing green funds that are specifically designated for green companies, as well as appeal to international customers and buyers who are mandated by their stakeholders to only purchase from environmentally conscious companies.
Pantas Climate Solutions Pantas provides a comprehensive and end-to-end climate solution that helps businesses measure, disclose, and reduce their carbon emissions. The diagram below illustrates the services within the Pantas Climate Solutions ecosystem.
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For a company's carbon emission disclosure, Pantas offers a platform that helps companies effectively manage their carbon emissions. Pantas' solution automates data collection, aggregation, and relevant data analysis to determine carbon calculations. To mitigate the risk of errors, the data collection tool is equipped with an integrated anomaly detection capability. Additionally, the platform includes an integrated carbon emission dashboard that can be customized according to the company's visualization needs.
Once the data is collected and calculated, Pantas will generate carbon emission reports that meet international standards such as TCFD, ISSB, SBTi, and CDP. Additionally, they will create an executive carbon emission report to provide analysis and support the company management’s decision-making process. Some companies may require or wish to obtain third-party verification. To assist in this process, Pantas will generate an assurance-formatted report that effectively reduces the time it takes to perform the verification process. Through its strategic partnership with the British Standards Institution (BSI), Pantas offers a seamless verification experience. In addition to the mentioned services, Pantas Climate Solutions also provides other value- added services to its clients.
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Value Added Services by PANTAS Value Chain Carbon Emission Management Programme
Through the partnership with BNM, Pantas has launched the Greening Value Chain (GVC) Programme. This programme will assist Pantas' clients in managing their supply chain emissions and enable them to meet regulatory requirements such as CBAM and reporting requirements by institutions like SBTi. Through the programme, Pantas helps SMEs gain access to training, simplified carbon accounting software, and other services offered by GVC partners such as MGTC, AmBank, BSI, and ESGBook.
Pantas Decarbonisation Partner Network
Pantas has partnered with several decarbonisation solution providers, such as Jentayu Sustainable, GarGeon, and SafeTruck, to integrate key information about their decarbonisation solutions onto the platform. This enables Pantas to smartly recommend decarbonisation services to clients instantly, further assisting them in implementing decarbonisation technologies and efforts. Based on client requests, Pantas provides advisory services such as guidance in meeting reporting requirements like TCFD, GRI, SBTi, and CDP. Pantas also conducts research on new sustainability regulatory requirements, assesses their impact on company operations, and suggests ways to improve compliance. Pantas collaborates with FRIM to offer carbon sequestration assessments for client forest reserves. This service is available for clients interested in offsetting their own operations' carbon emissions or exploring carbon credits.
Additional Advisory Services
What's next? Carbon accounting plays a crucial role in enabling organizations to meet the requirements of the Paris Agreement, with the ambitious aim of limiting global warming to just 1.5°C above pre-industrial levels. By providing clear and quantifiable data, carbon accounting empowers businesses to effectively reduce their emissions and pave the way for a greener future. For organizations ready to embark on their carbon emission disclosure journey, reach out to Pantas at hello@pantas.com and book a meeting to receive a free consultation and diagnostic of your company’s sustainability initiatives.
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Decarbonisation
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Decarbonisation
Despite the positive momentum in addressing climate change, Southeast Asian countries' proposed pathways are not ambitious enough to meet the 1.5 ° C target. While decarbonisation goals are attainable, they are hampered by a number of issues in governance, policy, finance, and implementation. Energy transition efforts in almost all regional countries are hampered by low levels of private sector participation in the energy sector, uncertain regulatory environments, and poor- quality grid infrastructure. Addressing these issues will necessitate greater coordination at the national, state, and local levels. Decarbonisation Milestones
Meanwhile, the decarbonisation imperative for businesses is accelerating. Organisations should actively respond to the possible physical and transition risks and opportunities of climate change. In doing so, they can limit exposure to climate- related risk and position themselves more favorably respond to associated opportunities. For business leaders, climate risks and opportunities can be more than a reporting or disclosure matter. At a time when political will and global public opinion are focused on profound climate action, climate risks and opportunities should be front and center for organisations as they plan their future growth strategies. The subsequent topic deliberates further on the three-decarbonisation focus including Building & Energy, Digital Infrastructure & Transportation, and Environment & Society.
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Decarbonisation Highlights
BUILDING & ENERGY
B uilding & energy decarbonisation aims to reduce carbon dioxide emissions from energy sources, contributing to climate change. By upgrading homes to electricity instead of natural gas, we can eliminate emissions and improve indoor air quality, ultimately reducing the overall impact on the environment.
Energy Efficiency Dramatically change all electric equipment with energy star certified appliances. Electrification Replacing the equipment in the building that uses fossil fuels with the latest electric technology Renewable Energy to use source of electricity from renewable energy to avoid greenhouse gas emissions Managed Electricity Loads Shift energy use to different times of the day to reduce the impact on the energy grid,
How it’s Work?
Strategic initiative
Advanced cooling system offers higher performance compared to conventional cooling, reducing time, money, and space in heat pump systems. Advanced building cooling system
Rooftop solar Installation
Rainwater Harvesting (RWH) RWH reduces erosion, controls stormwater runoff, minimizes flooding impacts, and reduces drainage system load.
Solar energy reduces carbon footprint without polluting the environment or depleting natural resources.
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• T ransportation & digital infrastructure decarbonisation initiatives promotes carbon-neutral mobility to help stop climate change through CO2 mitigation measures, integrate digital infrastructure ecosystem with various electronic applications, recognize EVs technology for decarbonizing the transport sector and Increase the use of public transport as an integrated mode of transport. TRANSPORTATION & DIGITAL INFRASTRUCTURE
Avoid motorised transport where possible. Shift passenger and freight traffic to cleaner modes. Improve the efficiency of transport vehicles and operations with new technology. Strengthen transport systems to enhance resilience.
How it’s Work?
Strategic initiative
Sustainable Energy for Smart Pole Utilised real-time sensors to monitor traffic, lighting, emergency, weather, and pollution, enhancing energy efficiency and customer satisfaction.
Last Mile Digital Infrastructure Improve connectivity, reduce air pollution, traffic congestion, and improve people movement for economic competitiveness.
Carbon Emission Tracking System Monitors greenhouse gas emissions from business activities, identifying opportunities for reductions and reducing their footprint.
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Environment & Society Malaysia has responded to deforestation by encouraging permanent gazetting of forests to encourage their long-term protection. Domestic environmentalism is also on the rise in Malaysia, particularly with a focus on preserving biodiversity. Federal, states, local authorities and NGOs have taken advantage of this growing attention to highlight the importance of forest and environmental protection. In addition, Malaysians are starting to capitalise on the economic benefits of intact forests, operating a growing number of ecotourism operations for domestic and international visitors. Meanwhile, there are increasingly organised youth movement which signals stronger national climate action in the future. Young Malaysians already engage in a number of national planning processes where their voice could be amplified in the coming decades. By raising public awareness and coordinating grassroots action, they have successfully pushed results, such as protecting forest reserves, and earned a seat at the table in creating new policies and programs, such as the Low Carbon City Framework. There is a growing recognition of the urgent need to change citizens’ lifestyles to realise decarbonised societies.
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1 Investing In A Sustainable Future: ESG Strategies For Decarbonisation By Cyberview Sdn Bhd 2 Understanding Greenhouse Gas Emissions Measurement in Cities By Confexhub 3 Are electric cars better for the environment and people? By System Consultancy Services Sdn Bhd 4 Environmental, social and governance (ESG) & Energy: Powerful Pair for Sustainable Future By UNITEN
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Editor’s Picks
Dr. Mohd Hafiz Ibrahim Acting Managing Director of Cyberview Sdn Bhd Investing In A
Sustainable Future: ESG Strategies For Decarbonisation
THE CHALLENGES OF URBANISATION Urbanisation is a significant driver of global electricity demand, due to the use of more energy-intensive technologies and the need to transport goods and people over longer distances. In hot and tropical environments, this growing demand for air conditioners, chillers, and fans demands action from governments, utilities, and building owners to improve energy efficiency, implement demand response measures, and establish a policy, regulatory, and market framework for better power system management.
Source: Department of Statistics Malaysia, 2020
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Cooling is one of the main contributors to heat island effect due to the classic feedback loop :
Heat islands are urban areas that experience higher temperatures than outlying areas. This is a common occurrence in cities, where downtown and commercial areas tend to be hotter than the surrounding suburban neighborhoods, parks, and rural regions. This is due to a number of factors but air conditioning is a major contributor to heat islands. When air conditioners are used, they release heat into the atmosphere, which further warms the air. This creates a feedback loop, where the heat from air conditioners makes heat islands worse, which in turn leads to more air conditioning use. This can cause increased energy demand, air pollution, and heat-related illnesses. To tackle this, we need to find a balance between city development and nature, so our cities can be more comfortable and eco- friendly.
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CYBERVIEW ESG STRATEGY & IMPLEMENTATION “Through this framework and 5-year roadmap, we want to ensure that the implementation of sustainability initiatives and projects within Cyberjaya further its status as the preferred sustainable investment destination for global investors in the tech sector and increase the vibrancy of the city’s communities” - Dr. Mohd Hafiz Ibrahim, acting MD, Cyberview Sdn Bhd
KEY COMPONENTS
Sustainability Governance Structure
ESG Framework
5-Year Roadmap (2023-2027)
Sustainability Policy
Cyberview, tech hub developer of Cyberjaya, has announced its Environmental, Social, and Governance (ESG) framework and 5-year roadmap. The Sustainability Policy serves as a statement outlining Cyberview's commitment and approach to ESG-related pillars. The ESG framework on the other hand aims to develop Cyberjaya into a low-carbon, smart city through energy efficiency, sustainable buildings, and waste management. Social initiatives will focus on fostering a high-performance workforce and robust communities. While the roadmap contains a comprehensive action plan to achieve goal, objectives, and targets, governance structure has clearly defined operational, management, and executive roles and responsibilities to promote accountability and informed decision-making.
ESG FRAMEWORK
The framework aims to create long-lasting impacts based on six UN Sustainable Development Goals: Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Sustainable Cities and Communities, Climate Action, and Peace, Justice and Strong Institutions. Proactive ESG strategy aligned with corporate objectives can demonstrate sustainability importance to consumers and increase accountability. A well-developed ESG strategy can provide a competitive advantage by meeting pre-tender and contractual requirements while highlighting responsible approaches to climate change, stakeholder wellbeing, and governance. Strong ESG strategies also lead to increased cost savings, better business performance, reduced risk, and alignment with international standards.
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ESG Pillar 1: Develop Low Carbon and Smart City
HERE ARE FIVE BENEFITS OF ESG FOR BUSINESSES ESG benefits businesses by:
1. Offering A Competitive Advantage, 2. Attracting Investors And Lenders, 3. Improving Financial Performance, And 4. Making Company Operations Sustainable .
Any organization that invest in ESG initiatives can gain a competitive advantage by offering environmentally friendly products and reducing resource waste. Additionally, ESG initiatives can make a business more attractive to investors, as even small efforts can improve a company's bottom line and ROI. By integrating ESG principles into core operations, businesses can identify cost-saving opportunities and reduce operational costs, ultimately benefiting their bottom line and overall success.
KEY STAKEHOLDERS
Employees
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1
Media
2
6
Customers and Tenants Contractors, Suppliers and Vendors
Business Partners Government and Regulatory Agencies
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3
Investors and Shareholders
Local Community and NGOs
4
8
The organization must consider their unique industry environment, business model, and cultural content when discussing stakeholder and ESG-focused incentive metrics. Engaging with internal and external stakeholders throughout the sustainability process is crucial for addressing evolving stakeholder priorities and achieving Sustainable Development Goals.
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Member’s Insight
YBhg. Datuk Ir. Khalilur Rahman Ebrahim Executive Chairman of System Consultancy Services
Are electric cars better for the environment and people?
This week, the news reported temperatures in California’s Death Valley approached a world record after reaching 53.3°C. Parts of Italy and China experienced heatwaves of 45°C, and deaths have been reported due to heatwave throughout the globe. Climate change is no longer a fancy buzzword; it is now on our doorstep and a very real threat. Decarbonisation initiatives in transportation are one of the efforts to subdue climate change, and it is aimed at reducing the environmental impact of transportation by switching to cleaner fuels and technologies. Electric vehicles (EVs) are a key part of these initiatives, as they produce zero emissions and can help to reduce our reliance on fossil fuels. OVERVIEW In other parts of the world, there is a major push to
change to EVs. The question is; Why are we not
moving fast enough? It is significant to highlight that EVs itself is not the issue, as there are more things that need to be addressed.
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Malaysia needs to catch up with neighboring automobile producers that are shifting their focus to EV production. What are the major challenges in Malaysian EV industry? The Netherlands and UK governments have announced that it will ban the sale of new petrol and diesel cars by 2030. Norway has already banned the sale of new petrol and diesel cars in Oslo, and the country plans to ban the sale of new petrol and diesel cars nationwide by 2025. As of July 2023, there is no official announcement on when Malaysia will stop selling engine cars. However, the Malaysian government has set a target of having 15% of new vehicle sales in Malaysia be EVs by 2030.
In these early stages of development, the Malaysian EV industry needs to address specific challenges in order to accelerate the growth of the market. Firstly, there is still a general lack of awareness (and urgency) about EVs among consumers in Malaysia. Current EV prices are getting more competitive, but still beyond the affordable reach of majority of Malaysians, making it difficult for the public to realistically consider EVs as a serious alternative. In my opinion, price is going to be the most critical factor to adoption, and contrary to expected beliefs that technology solutions will get cheaper as they mature, in this particular case, that might not be true, as critical materials such as rare earth magnets and ingredients for batteries are getting scarce. For the few that do make the switch to EV, they are then concerned about the range of their new cars for their daily needs, worrying about the lack of infrastructure such as charging stations, and possible running and maintenance issues with unfamiliar technology. Addressing basic issues like these need to happen to remove the barriers to adoption.
With public awareness and interest, the industry will also have to step up to challenges to support the pivot from combustion engine to electric. How can we coordinate to build the charging infrastructure and solutions? Do we buy, build, or just make parts? What standards are available, and what services will be needed to sustain it? How do we develop the talents we need to grow and sustain an ecosystem for a technology and application still unfamiliar? How much support will we get
from the government still refining the policies on the subject?
Fuel expenditures savings and industrial expansion
Reduction in total primary energy supply and energy consumption
Greenhouse gas emission reduction
Source: Malaysian Green Technology And Climate Change Corporation
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That said, we have made some significant strides in the right direction. Policymakers and various agencies have geared up their pace with regards to providing the right environment for the industry to take shape. Local automotive manufacturers are actively exploring possibilities for their future markets, and tech companies are quick to engage. It is exciting times for Malaysia.
An aerial photo shows cars to be loaded for export at Yantai Port in eastern Shandong province in May 2023. Photo: Xinhua
What are the areas of collaboration that Malaysia could potentially explore that can accelerate our EV market and industry as well as the talent development? The auto industry will require major changes in the way the ecosystem infrastructures are set up, and the way the EV is serviced. New technologies and practises will have to be learnt and implemented.
Collaboration with research institutions and universities in studies related to battery applications such as battery exchange, swapping and recycling are opportunities for the Malaysian RND community to support EV adoption. Other research opportunities include new battery technologies, charging infrastructure, and refining the EV manufacturing processes. Collaboration with industry partners, local and international, will help establish and grow the EV supply chain. This will involve coordination with battery manufacturers, EV component suppliers, and charging infrastructure providers, to name a few.
Collaborative areas Malaysia can explore
Equally crucial is collaboration with government agencies to develop policies and regulations that support the development of the EV industry. This could include policies to promote the purchase of EVs, provide incentives for EV manufacturing, and develop charging infrastructure. In addition to the above, Malaysia could also focus on developing the talent pool in the EV space. This could be done by providing hands-on EV training and education programs for existing technicians, engineers, and managers. In university, the training can start early by introducing EV technology studies as part of automotive engineering syllabus. In addition, young graduates from these courses can be streamlined for internships within the EV community network and industry. For an emerging field such as EV, collaboration is crucial to adequately transform to the needs of the future of the industry. Sounds like a complex journey, but it is not impossible, because the entire world is facing the same thing. There are no true experts yet, and no solid leader. Furthermore, what works for other regions may not be the best fit for us. There is still equal opportunity to develop innovative solutions specific to our region, that’s applicable especially for ourselves and our neighbours.
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Demand for electric vehicles (EVs) is expected to grow sharply in 2023, due to tax incentives as well as potential launches of more accessibly priced EVs. Vision for electric vehicle ecosystems in Malaysia in supporting the smart & sustainable agenda?
What will happen to the ICE cars we already own, and are still paying loans for, as the world moves to EVs? Will the adoption of EVs make these vehicles obsolete and redundant, while they still have economic value? How can the entire ecosystem transform to support this transition?
The tax incentives have been a great entry signal for early adopters of EVs, and this year we have seen the momentum and public interest continue to build up, as more EV models enter our shores, seemingly aimed at the mid- range market. This is a positive trend of course, but it begs the question;
Perhaps then, the answer to a true smart & sustainable solution cannot be fully found in new vehicles alone. What if, as our current cars age and becomes more costly to maintain, that cost can be diverted towards converting these cars to electric? We believe conversion kits could make EVs even more viable and affordable, especially to the majority favouring A-segment cars as their daily drive of choice. These kits could even be pre-installed in the factory as an electric version of local brand models. In both cases, a new (electric) lease of life is possible for our already-beloved cars.
How about the ecosystem? Traditional automotive workshops can soon reinvent themselves, as upcoming regulations will offer opportunities to train and upgrade to become EV workshops, able to perform conversions through pre-approved kits instead of engine overhauls as these engines start phasing out. Additionally, traditional petrol stations can become EV service hubs, offering increasingly more charging bays to replace fuel pumps, and other future services such as battery swapping or extensions, for the occasional ‘balik kampung’ journeys which require longer range. Both examples show how industries and support systems can remain relevant and thrive in changing times.
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Even the issue of charging infrastructure can be envisioned with multiple perspectives and solutions. How shall sufficient power be provided to the tens of thousands of charging stations required throughout the country? How will that effect and tax the national power grid, and who will bear the cost of transporting and distributing that power? Perhaps then, especially for remote, ‘last mile’ hubs, the stations can be powered via greener options; solar energy. An abundant resource in our beautiful country, this option is not as viable for other less-sunny nations, so let us take the lead. You can take this even further; for a fully off-grid application, solar panels provide energy to charge the EV, and the EV then becomes the ‘powerbank’ to your home at night, or in emergencies and during disasters where main power is no longer accessible.
The Low Carbon Mobility Blueprint 2021-2030 aims to assess the best options for energy and GHG mitigation planning in the transport sector, particularly land transport, using scenario analyses of a business-as-usual case and similarly for 2030.
Certainly, this and many other related technologies are worthy of study by our local universities and research institutes and should be supported by the government and relevant agencies through focused programs and policies. The Low Carbon Mobility Blueprint 2021-2030 is a guideline from which we can start having these conversations. Academia, industry, agencies, and users each have a seat and a stake. It will take collaborative will and consistent effort but can be yet another way for us to ensure self-reliance and sustainability as we move forward. So, you see, sometimes the answers are not necessarily new, just reimagined. MyKar, the first Malaysian-made electric vehicle, at the Sepang International Circuit. MyKar is produced by EV Innovations, a start-up helmed by Datuk Ir. Khalilur Rahman Ebrahim, a member of MIGHT’s Board of Directors and Chairman of VentureTech.
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Member’s Insight
Dr. Zeittey KarmilaKarman Senior Lecturer and Quality Manager, College of Graduate Studies & Associate Researcher Institute of Energy Infrastructure (IEI), UNITEN
Environmental, Social and Governance (ESG)in Energy Activities: Powerful Pair for Sustainable Future
The term "environmental, social, and governance (ESG)" is attributed to a 2004 United Nations (UN) Global Compact report on ESG investment. The UN report “Who Cares Wins”, published in 2004, is widely regarded as the first mainstream mention of ESG in the modern context. This report focused heavily on encouraging all business stakeholders to embrace ESG on a long-term basis. Managers, directors, investors, analysts, and brokers were all addressed in the report. These developments occurred in tandem with an increased international focus on the people, planet, and governance issues. People began to care more about workplace sustainability, respect, and diversity. Moreover, many companies in the energy sector nowadays have shown their interest in pursuing a decarbonized goal in their business activities. This is because energy companies face significant environmental and social challenges such as climate change, air pollution, and natural resource depletion. These companies must disclose their carbon footprint, reduce greenhouse gas emissions, and invest in renewable energy sources to meet ESG criteria. They must also prioritize health and safety measures for their employees and contractors and engage with local communities to mitigate social impacts.
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The ESG principle is divided into three pillars in terms of energy concern
ENVIRONMENT
The environmental pillar of ESG is concerned with a company's environmental impact, which includes issues such as CO2 emissions, overall carbon footprint, water usage, pollution, and waste management processes. Moreover, energy and environmental issues are inextricably connected because it is extremely difficult to generate, distribute, or consume energy without bringing a major adverse effect on the environment. There are several environmental issues that are directly linked to the production and consumption of energy, which involve airborne pollutants, global warming, water contamination, heat pollution, and hazardous material disposal. The main cause of urban air pollution is the discharge of contaminants into the atmosphere from the combustion of fossil fuels.
SOCIAL
The effects of energy on society are both positive and negative. Humans benefit from plentiful, affordable, secure, safe, and clean energy. Energy extraction, transportation, and use, on the other hand, can have a negative impact on a society's health, environment, and economy. Additionally, relying on imported energy can jeopardise a country's security. Energy decisions have different consequences for different people. Underprivileged or marginalized communities are more likely to suffer the negative consequences of energy decisions because they have a lower capacity for adaptation and may lack bargaining power when compared to those with greater incomes. As a consequence, vulnerable populations can gain a lot from improvements in energy accessibility, safety, or affordability. These issues further highlight the underlying problem of the world's dependency on an infinite amount of fossil fuels. As demand rises and supply falls scarce, the problem becomes more serious, with possibly harmful social and economic. A massive transition away from fossil energy poses a significant challenge to society.
GOVERNANCE
The third pillar focuses on a company's internal operations, including meeting stakeholder needs, making political contributions, enforcing policies, hiring practices, adhering to laws and standards, and being transparent with the public. Governance refers to any of the numerous processes by which a group of people establishes and enforces the rules necessary for that group to achieve its goals. International energy markets are clearly suffering from a lack of adequate governance. National government policies on both the supply and demand sides distort price signals in these markets. Investment in future energy supply is frequently insufficient and does not serve the public interest, resulting in extreme price volatility. Because national governments regard energy services as critical to national security and power, they intervene in the sector to promote energy "independence" or, at the very least, to ensure supply [1] Reference: [1] Florini, Ann, and Benjamin K. Sovacool. "Who governs energy? The challenges facing global energy governance." Energy policy 37, no. 12 (2009): 5239-5248.
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Climate change, air pollution, depletion of natural resources, and ineffective energy governance are all significant environmental, social, and governance challenges for energy companies. To meet ESG criteria, these companies must disclose their carbon footprint, reduce greenhouse gas emissions, and invest in renewable energy sources. They must also prioritize health and safety measures for their employees and contractors and engage with communities nearby to mitigate negative social effects. The idea of ESG for a sustainable future helps energy companies boost shareholder value by, for example, properly managing risk, anticipating regulatory action, or entering new markets while contributing to the long-term development of societies and protecting the environment in which they operate. As such, companies need to have their own framework according to the suitability of the elements of ESG. To achieve a powerful pair of the main three ESG pillars for a sustainable future, SDG Goal17 can be used to assess the performance of energy players such as [2]:
Goal 7 is about ensuring access to clean and affordable energy, which is critical for agricultural, business, communications, education, healthcare, and transportation development. Energy scarcity stifles economic and human development. According to the most recent data, the world is making progress towards sustainable energy goals. However, the current rate of progress is insufficient to meet Goal 7 by 2030. There are still significant disparities in access to modern, sustainable energy. Rising commodity, energy, and shipping prices have increased the cost of manufacturing and transporting solar photovoltaic modules, wind turbines, and biofuels around the world, adding uncertainty to a development trajectory that is already falling far short of Goal 7 ambitions. To meet energy and climate goals, continued policy support and massive mobilization of public and private capital for clean and renewable energy, particularly in developing countries, will be required. Goal 11 calls for cities and human settlements to be inclusive, safe, resilient, and sustainable. Cities now house more than half of the world's population. By 2050, 7 out of 10 people are expected to live in cities. Cities are economic growth engines, accounting for more than 80% of global GDP. They do, however, account for more than 70% of global greenhouse gas emissions. Urban development can be both sustainable and inclusive if well-planned and managed. The COVID-19 pandemic and other cascading crises have highlighted the importance of sustainable urban development. Cities must improve their preparedness and resilience in order to respond to future crises. Goal 17 focuses on reviving the global partnership for sustainable development. The 2030 Agenda is global in scope and calls on all countries, developed and developing, to take action to ensure that no one is left behind. Partnerships between governments, the private sector, and civil society are required. Only a strong commitment to global partnership and cooperation will allow the Sustainable Development Goals to be realised. There are still significant challenges ahead. Official development assistance (ODA) has not reached the targeted level; private investment flows are not well aligned with sustainable development; a significant digital divide persists; and trade tensions persist. To be successful, everyone must mobilise existing and new resources, and developed countries must fulfil their official development assistance commitments.
Reference: [2] https://www.un.org/sustainabledevelopment/energy/
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It is hugely important issue for the country on how to decarbonise and be more environmentally aware. What is the right energy management in improving energy efficiency and reducing carbon footprints? The best energy management strategy includes a mix of tactics aimed at increasing energy efficiency and lowering carbon footprints in order to decarbonize and become more ecologically conscious.
Important factors for reaching these goals
Energy Efficiency Give the highest priority to energy- saving initiatives in the household, commercial, and industrial sectors. This entails implementing energy-efficient technologies and procedures, such as smart meters, building insulation, LED lighting, and energy management systems. Energy saving can also be improved by promoting behavioral changes like turning off lights and appliances when not in use. Decentralized Energy Systems Encourage the development of distributed generation and microgrids as examples of decentralized energy systems. These technologies allow for localized energy production, lower transmission losses, and increased energy infrastructure resilience. They also support sustainability at the local level and facilitate the incorporation of renewable energy sources. Implement smart grid technology that allows for load balancing, demand response, and real-time monitoring. As a result, energy efficiency is improved, energy distribution is optimized, and renewable energy sources are supported in their integration. Install energy management systems to keep an eye on and manage energy use in cities, businesses, and buildings. Smart Grid and Energy Management
Renewable Energy Transition Switching to renewable energy sources from fossil fuel-based ones is known as the renewable energy transition. Encourage the installation of energy systems using solar, wind, water, and geothermal sources. Governments should set up beneficial regulations, incentives, and policies to promote investments in renewable energy infrastructure. Develop renewable energy projects and improve grid integration by working with industry stakeholders.
Electrification of Transportation
Prioritize of transportation by encouraging the use of electric cars (EVs) and creating a charging infrastructure. To promote the adoption of EVs, incentives, subsidies, and supportive policies should be put in place. Encourage the use of bicycles, walking, and public transportation to lessen your dependency on fossil fuel-powered automobiles. the electrification Energy Education and Awareness Raising public awareness and educating people about energy efficiency, renewable energy, and the significance of lowering carbon footprints. Create educational efforts, campaigns, and programs that are aimed towards various demographics. Encourage ecological practices and energy-saving habits at work, in the classroom, and at home.
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