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Energy efficiency and carbon trading potential in Malaysia

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  • Oh, Tick Hui
  • Chua, Shing Chyi

Abstract

The damage inflicted by global warming is happening far faster than any experts have predicted or anticipated. Since the Kyoto Protocol was signed in 1997 to fight global warming through reducing global greenhouse gases (GHGs) emission, the world climate pattern has worsened at an accelerated rate beyond expectation. While developed countries sanctioned by the protocol are committed to achieve their GHG emission targets, developing nations play similar roles on a voluntary basis. Since almost all of the GHGs emissions come from energy sector, it is obvious that energy policy and related regulatory frameworks play imperative roles in realizing the Kyoto Protocol objectives. With carbon dioxide (CO2) touted as the main remedy in the GHGs emissions, it is only reasonable that carbon trading becomes the essential element in the Protocol. Recently a milestone is marked in the Kyoto Protocol with the 2009 Climate Summit in Copenhagen, Denmark, with all participating countries further committed themselves in fulfilling the protocol's obligations before the commitment period due in 2012. It is worthwhile to review the various energy efficiency efforts and carbon trading potential in Malaysia, a country which although does not bear any obligation, has ratified and lauded the cause of the protocol. Malaysia as a developing nation is seen as a direct beneficiary from carbon trading and in this paper, how the country energy policies have evolved over the years with concerted efforts from the government to minimize its carbon footprint through numerous energy efficiency implementations are discussed in length. The impact from the 2009 Climate Summit on Malaysia is also briefed.

Suggested Citation

  • Oh, Tick Hui & Chua, Shing Chyi, 2010. "Energy efficiency and carbon trading potential in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2095-2103, September.
    • Handle: RePEc:eee:rensus:v:14:y:2010:i:7:p:2095-2103
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