Last month, Malaysia unveiled a bold plan to cut its coal-fired power plants by half by 2035, with a goal of fully retiring them by 2044. This initiative is part of the country’s strategy to reach net-zero emissions by 2050. While the goal is ambitious, its practical implementation may face significant hurdles.
At last year’s COP28 summit, Malaysia’s Natural Resources, Environment, and Climate Change Minister highlighted that Asia adopted coal power later than Western countries. This late adoption has made the early shutdown of these plants particularly challenging. The region’s rapid economic growth has been closely linked to coal, complicating the transition away from it.
The minister also pointed out that coal power purchase agreements totaling over 7,000 MW will expire in the next nine years. As of 2021, coal accounted for nearly 45% of Malaysia’s electricity generation, while natural gas contributed 34.2%, and renewables were only at 2.4%. Transitioning from coal while maintaining economic stability, environmental goals, and a reliable power supply will be complex. A “just transition” is essential to ensure that communities dependent on coal jobs are not adversely affected.
Malaysia’s target to end coal use by 2044 slightly precedes the National Energy Transition Roadmap (NETR) estimate, which suggests a near-total phase-out by 2045.
Renewable energy is expected to increase its share in Malaysia’s energy mix, but the country remains heavily reliant on natural gas. Although cleaner than coal, natural gas is still a fossil fuel that contributes to greenhouse gas emissions, raising concerns about Malaysia’s overall sustainable energy strategy.
Experts remain doubtful about Malaysia’s ability to meet its zero-carbon goals and the 2044 coal phase-out timeline.
Vinod Thomas, a visiting senior fellow at the ISEAS–Yusof Ishak Institute, wrote on Fulcrum, “With its heavy reliance on fossil fuels, Malaysia faces a tough but essential road to decarbonisation. However, the country is well-positioned to leverage emerging technologies for low-carbon growth in industry and transport. Malaysia must accelerate green investments and pursue its carbon reduction goals with determination.”
Transforming an energy sector so reliant on coal and natural gas to one dominated by renewables in just two decades is a daunting task. While the government’s commitment is clear, achieving it will require substantial investment, new technology, and robust policy support.
Malaysia’s plan to phase out coal is a significant step towards reducing carbon emissions. However, its success will depend on addressing economic, technical, and social challenges. A complete phase-out of fossil fuels remains uncertain as the nation strives for a sustainable energy future.