What is Malaysia's pathway to limit global warming to 1.5°C?

Industry

Industry accounts for the second largest share of Malaysia’s primary energy demand, at 28% in 2017.1 The share of electricity in the sector’s final energy mix is also steadily increasing since 1990 reaching 50% share in 2019.2 1.5°C compatible pathways show that electricity use in the sector could increase by up to 35% by 2030 and 61-73% by 2050. All scenarios see a rapid decline in direct CO₂ emissions from the industrial sector to 24 MCO₂/yr by 2030 and 4-7 MtCO₂/yr by 2050 from 2019 level of 50 MtCO₂/yr, mostly driven by an increased penetration of renewables in the energy mix and increased energy efficiency.

Malaysia's energy mix in the industry sector

petajoule per year

Scaling

Fuel share provided refers to energy demand only from the industry sector.

Primary energy demand in industry is mostly met by fossil fuels (65% in 2020), comprises of natural gas 32% and oil 25%. All analysed scenarios except one, show a peaking of the share of fossil fuels in the energy mix by 2025-30 and a declining trend after that to reach 35-40% share by 2050.

The share of industrial process emissions is 9% of total emissions (excl. LULUCF) in 2019and it has been increasing since 1990.3 1.5°C compatible pathways show a declining trend of process emissions from 33 MtCO₂e/yr down to –2 to 19 MtCO₂e/yr by 2050.

To manage energy efficiency, the government proposed in its 2016 National Energy Efficiency Action Plan energy audits in large and medium sized industries and cogeneration in industries and commercial buildings. The Green Technology Master Plan projects a 50% increase in the number of green manufacturers from the 2015 level with increased adoption of green energy, green product certification and green industrial process.

Malaysia's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

Malaysia's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, shares of electricity, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for Malaysia

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
50
24 to 24
13 to 17
4 to 7
2048 to 2050
Relative to reference year in %
-52 to -51%
-75 to -67%
-91 to -86%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
34
35 to 35
47 to 60
61 to 73
Share of electricity, hydrogren and biomass
per cent
34
37 to 39
47 to 78
62 to 91

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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