Regulatory Push
The nation implemented its Energy Efficiency and Conservation Act (EECA) on 1 January 2025 to reduce energy usage among large energy consumers, including those in the commercial and industrial sectors. This will require large office buildings, for example, to meet specific building energy intensity standards and be subject to energy audits if they fail to meet requirements. The EECA is the latest regulatory push within Malaysia that aims to help the nation meet its net zero ambition by 2050 and follows a raft of other climate-focused measures announced in recent years. For instance, it comes after the National Energy Transition Roadmap (NETR), which was announced in full in 2023, outlining plans for the country to achieve 31 per cent renewable energy in its energy mix by this year, 40 per cent by 2035, and 70 per cent by 2050. Another widely anticipated piece of legislation is Malaysia’s Climate Change Bill, which, once introduced later this year, will aim to provide a legal framework for climate action, including carbon pricing and emissions reduction strategies.
| National Energy Transition Roadmap (NETR) 2023 | (Renewable energy in energy mix) | (Year) | (Percentage) |
| 31% | By this year | 2025 | |
| 40% | By 2035 | ||
| 70% | By 2050 |
Consumer Demand and Expectations
Consumer demand for companies that prioritise sustainability is also pushing businesses to meet more stringent requirements. For example, one Malaysia-based retail shopping mall, The Exchange TRX, notes that having sustainability-focused features is proving to be a “key differentiator” among tenants and patrons. “Tenants today seek more than just prime location and aesthetic appeal; they value spaces that align with their corporate sustainability commitments. Consumers are [also] more environmentally conscious and increasingly choose destinations that align with their values,” a spokesperson from The Exchange TRX told Eco-Business.
“Lowering energy demand remains the most effective long-term solution, and RECs ‘complement’ these initiatives rather than replace them.” – The Exchange TRX spokesperson
Challenges and Opportunities
Despite comprising more than 90 per cent of all businesses in Malaysia and contributing almost 40 per cent to the nation’s economy, SMEs often lack access to the same capital that multinational corporations have to decarbonise. Instead of waiting for SMEs to slowly catch up, organisations should consider taking the lead in communicating and sharing best practices with their vendors, he adds.
| Key points of EnerLoop by Ditrolic Energy | Features | Functions |
| 1. Solar power integration | Helps manage energy usage and emissions | |
| 2. Renewable energy purchasing options | Provides companies with options to purchase renewable energy | |
| 3. Energy management systems | Helps companies to manage their energy usage more efficiently | |
| 4. Carbon tracking capabilities | Provides companies with a view of their energy usage and emissions |
| Carbon management system, EnerRec | Function | Description |
| 1. Purchase RECs | Allows companies to purchase RECs to offset their emissions | |
| 2. Register RECs with I-REC | Ensures the reliability and authenticity of RECs |
Part of the Solution
Wilson Puon, head of integrated clean energy solutions, Ditrolic Energy notes that a radical change is needed, starting with the transition to renewable energy. This requires significantly increasing investment in solar and other renewable resources. “Apart from solar, we need to explore other renewables such as biomass, geothermal, and hydro power, for example. We have to diversify our renewable energy sources,” he added. Diversified energy sources
While it may be several years before Malaysia tips the balance away from fossil fuels in favour of renewable energy, companies that start now will be in a better position when the time comes, Puon notes. In his opinion, a radical change is needed, starting with the transition to renewable energy.
