Malaysia to launch USD-431m initial energy transition fund

Malaysia will establish a National Energy Transition Facility (NETF) with an initial seed fund of MYR 2 billion (USD 431m/EUR 399m) to support energy transition projects, prime minister Anwar Ibrahim said on Tuesday.

NETF will catalyse blended financing from the private sector and international sources to improve financing access for important energy transition projects that have not reached a bankable commercial stage, the prime minister explained at an energy transition conference.

At the conference, Anwar Ibrahim launched the second phase of the National Energy Transition Roadmap (NETR). Phase one was unveiled in July. It included 10 flagship catalyst projects across six energy transition levers -- energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, and carbon capture, utilisation and storage (CCUS). In addition to these, NETR outlines 50 initiatives under the six energy transition levers and five enablers, which are financing and investment, policy and regulation, human capital and just transition, technology and infrastructure, and governance and implementation.

The NETR estimates Malaysia’s energy transition financing needs at between MYR 1.2 trillion and MYR 1.3 trillion by 2050.

The roadmap can be viewed on the website of the Economy Ministry.

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