The government has recently introduced the first phase of the National Energy Transition Roadmap (NETR). This roadmap outlines the strategy to expedite the nation’s shift from a conventional fossil fuel-driven economy to a more sustainable green economy. The plan encompasses 10 flagship catalyst projects and 6 key energy transition drivers, namely energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, and carbon capture, utilisation, and storage (CCUS). Collectively, the successful implementation of the plan would have the potential to generate significant investment opportunities for energy transition, ranging from RM435 billion to RM1.85 trillion by the year 2050. According to source, Part 2 of the NETR will be unveiled in August, with a focus on establishing the low-carbon pathway, national energy mix, targets for emission reduction, and the steps required for energy transition. The government now aims a higher 70% RE capacity target (of total power capacity) by 2050, from 40% (by 2035) earlier.
Read more on NETR Phase 1 and its 10 flagship catalyst projects initiatives here.
The stars are aligning for Power Sector (and more!!!)
The country’s major energy player, Tenaga, is set to bolster its ESG profile by transitioning towards more renewable energy sources and reducing exposure towards conventional fuel energy. Notable flagship initiatives championed by Tenaga include Renewable Energy (RE) Zones, encompassing the creation of centralised large-scale solar parks in collaboration with SMEs, cooperatives, and state economic development corporations; as well as the implementation of hybrid hydro-floating solar (HHFS) photovoltaic systems, with a capacity of 2500MW at Tenaga’s hydro dam reservoirs. Additionally, there is a collaborative effort with PETRONAS to introduce the co-firing of green hydrogen and ammonia aimed at decarbonising Tenaga’s generation plants as well as collaboration with strategic partners in EV charging stations installation.
Malakoff stands to benefit from a ramp-up in RE capacity and prospects of co-firing biomass at its 2100MW Tanjung Bin power plant. Biomass source include Empty Fruit Bunch, pallets, wood chips, wood pellets, bamboo pellets, coconut husk and rice husk. Separately, with the vigorous expansion of domestic renewable energy capacity, local solar contractors (likes of Sunview) are poised to directly reap the benefits. Sime Darby Property is set to launch solar solutions within residential communities by leasing rooftops from homeowners to facilitate the installation of solar panels, subsequently supplying the generated energy to designated recipients. The initial phase of this residential solar initiative will commence in the City of Elmina and Bandar Bukit Raja areas.
Identify investment opportunities – Phillip Managed Account for Retirement (PMART) and Phillip Managed Account (PMA) ESG
Phillip Capital Malaysia offers discretionary portfolio that invests in stocks with high ESG ratings from the F4GBM and F4GBMS Indices, namely PMART and PMA ESG. There are both conventional and Shariah options available. PMART and PMA ESG is suitable for investors who want to optimise the risk-adjusted return by constructing a diverse sustainable portfolio of ESG companies.
To explore the companies in which both Conventional and Shariah ESG mandates invest, you can refer to the provided link. We like these companies because they have received high ESG ratings, which we believe can contribute to their long-term sustainability, responsibility, and profitability.
Please click on the link to learn more or email us at email@example.com if you require any further information.
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