According to Bank Negara Malaysia (BNM), Malaysia is planning to create its own greenhouse gas (GHG) emission factors* tailored to the country’s key sectors. The purpose of this initiative is to support the implementation of a carbon price framework.
By establishing these factors, the government will lay a solid foundation for the development of a national-level carbon accounting framework, said the central bank in its Annual Report 2022 released (March 29). This framework will serve as a reference point for the government to design and expand market mechanisms like compliance carbon markets. Such mechanisms are essential for accelerating climate action in Malaysia, achieving its net zero goals, and mitigating the adverse effects of an unorganized transition.
BNM emphasized that the national carbon accounting framework should adopt a consistent approach in assessing GHG emissions and allow for setting emission limitations at the entity, sector, and national levels. Collaborating with various stakeholders will be necessary to identify the most relevant emission factors for Malaysia’s economy and industries.
These specific factors are expected to assist businesses in comprehending their carbon footprint and provide a basis for implementing a carbon price. The development of country-specific GHG emission factors represents a critical milestone in Malaysia’s journey towards a low-carbon economy and fulfilling its climate targets.
*GHG emission factors refer to the measurements used to quantify the amount of greenhouse gas emissions produced per unit of activity or output in a specific sector or industry. They provide a standardized way to estimate the carbon footprint of various activities and help assess the impact of different sectors on climate change. These factors are typically based on scientific research and data and are used to develop policies, set emission reduction targets, and implement carbon pricing frameworks. By understanding GHG emission factors, governments, businesses, and organizations can better measure, track, and manage their emissions to mitigate climate change and transition towards a low-carbon economy.
Source: Business Today