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

Transport

Last update: 1 September 2021

Malaysia’s transport sector accounts for the largest share of primary energy consumption, at 38.5% in 2017.1 Though its share has remained almost the same since 1997, energy consumption of the sector has increased steadily over time. In 2019, the share of electricity use in transport sector was less than 1%.2 Paris Agreement compatible pathway requires rapid electrification of the transport sector reaching a share of 2-12% by 2030 and 21-57% by 2050. All scenarios see a rapid decline in direct CO₂ emissions from the sector reaching 41-43 MtCO₂/yr by 2030 and 5-23 MtCO₂/yr by 2050 from the 2019 level of 63 MtCO₂/yr, mostly driven by high electrification rate of this sector and introduction of hydrogen and other biofuels in the fuel mix.

Malaysia's energy mix in the transport sector

petajoule per year

Scaling

Final energy consumption in the transport sector is completely dominated by fossil fuels (98% in 2020), mostly oil. All scenarios except one show a declining trend of fossil energy demand from 2020. One of the scenarios is showing a fossil fuel phase-out from the transport sector in Malaysia by 2060.

The National Transport Policy (NTP) 2019-2030 which provides an overarching policy framework for the transport sector is not sufficient to support the required transformation of the sector, and the government would need to develop and implement more ambitious policies to drive emission reductions in the sector. The proposal aimed at increasing the uptake of electric vehicles by eliminating all taxes on EVs in Malaysia, including import and excise duties as well as road tax is a step in the right direction.3

Some studies have identified means for decarbonising the transport sector such as improving urban design, expanding rail networks, improving fuel efficiency, promoting the uptake of electric vehicles.4,5 Malaysia needs to adopt policies to deliver on its target for 100% EVs by 2030.6

Malaysia's transport 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).

1.5°C compatible transport sector benchmarks

Direct CO₂ emissions and shares of electricity, biofuels and hydrogen in the transport final energy demand from illustrative 1.5°C pathways for Malaysia

Indicator
2019
2030
2040
2050
Decarbonised transport sector by
Direct CO₂ emissions
MtCO₂/yr
63
41 to 43
21 to 29
5 to 23
2055 to 2068
Relative to reference year in %
-35 to -33%
-67 to -54%
-92 to -64%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
0
2 to 12
13 to 24
21 to 57
Share of biofuels
per cent
2
4 to 5
4 to 7
4 to 20
Share of hydrogen
per cent
0
1 to 17
19 to 51
30 to 63

All values are rounded. Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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