Pragmatic approach needed for energy transition, says Anwar

The Star

6 hours ago

Datuk Seri Anwar Ibrahim (centre) at the Energy Asia 2025 launch. -Bernamapic
KUALA LUMPUR: A pragmatic and balanced approach is essential to ensure a just and equitable energy transition for Asia, said Datuk Seri Anwar Ibrahim.
The Prime Minister emphasised the importance of this approach for the region's continued development as it shifts towards renewable energy.
"We must invest in improving efficiency and reducing emissions within our existing energy systems.
"It is a formidable task given that fossil fuels still account for nearly 80% of global supply.
"It would be ridiculous to assume we can move away from this traditional dependence without growing confidently and meeting new demands," he said on Monday (June 16) at the Energy Asia 2025 launch.
He warned that decarbonisation efforts ignoring the needs of the poor and vulnerable risk deepening inequality.
"Ensuring universal access to affordable, reliable energy is not just a moral imperative; it is foundational to a just energy transition," he said.
He added that energy security must encompass social justice and inclusive access beyond supply stability.
Anwar said that nations, including Asean, must accept these realities when crafting energy-related policies.
"The policies must be realistic and pragmatic, acknowledging current demands, not dictated by others," he said.
Anwar noted that Malaysia adopted this approach through its National Energy Transition Roadmap (NETR) launched two years ago.
"We embarked on a pragmatic approach. We understand our demands, the plight of the marginalised, and the new demand for emerging data centres.
"This compels us to adopt strategic, realistic, and pragmatic policies," he said.
The Prime Minister highlighted that energy demand in the Asia Pacific surged last year, accounting for 50% of global energy consumption.
"The region also contributes 60% of global emissions. Yet, even as growth accelerates, our commitment to climate action remains resolute," he said.
He noted that eight out of ten Southeast Asian nations have set net-zero targets.
"At COP28, Asean member states pledged to triple global renewable energy capacity to 11,000 GW by 2030," he said.
Anwar acknowledged that meeting the region's energy needs and transitioning to renewable energy requires significant investments.
To attract such investment, he called for clear financial structures that inspire investor confidence and mobilise capital into renewable energy projects.
"This is critical, given that in 2023, Southeast Asia attracted only 2% of global clean energy spending.
"This is stark for a region with immense potential in renewable energy, such as wind in Vietnam, hydropower in Laos, solar in Malaysia, and geothermal energy in Indonesia," he said.