Following the change of government this month, the new Cabinet will have to tackle almost two years of neglect on decarbonisation issues, the question of fuel subsidies, and a new automotive policy to encourage the uptake of electric vehicles (EVs).
Malaysia’s policies on decarbonisation started in 1992 with the government’s participation in the United Nations Conference on Sustainable Development in Rio de Janeiro, and Malaysia’s commitment to the United Nations Framework Convention on Climate Change (UNFCCC) in the year 2000.
The procession of climate change treaties, including the Paris Agreement of 2015 or COP 21, have become more urgent.
The world’s climate experts from the UN and the European Union are sounding the alarm. They say that climate change is already upon us and we have just 10 years to cap and reverse carbon dioxide emissions. In a new report, UN scientists warn that global temperatures have risen faster since 1970 than at any point in the past 2,000 years.
In the meantime, expect more frequent extreme weather conditions – floods will get worse and more frequent, hot weather will get hotter, countries with water shortages will have longer and drier summers.
Malaysia’s response from the policy perspective has been impressive. Subsequent to the first national communication from Malaysia to the UNFCCC, Malaysia has created an energy, green technology and water masterplan.
Road tax incentive
The transport ministry (MOT) has a transport master plan with elements of climate change factored in. However, the devil is in the details, including the matter of road tax payable.
The Road Transport Department (JPJ) recently implemented a structure of road tax to incentivise electric vehicles (EVs) with a 50% discount on the rate for an internal-combustion engine car producing an equivalent amount of KWh power.
There are also anomalies in the tariff for battery and internal combustion hybrids where the road tax is based on the engine capacity of the small petrol engine used as a range extender for what is essentially a battery-powered electric vehicle such as the BMW i3.
The two issues contradict the transport master plan call for greater use of electric vehicles in Malaysia, namely:
•Encourage use of different models of EV.
•Formulate and implement fuel economy policy.
•Develop green index and incentives to go green.
•Accelerate implementation of low carbon mobility initiatives
Whether the JPJ and MOT are naïve or not, the new government has two months to get its act together for COP26 in November at which leaders from 196 countries will take part.
They will be asked to agree on action to limit climate change and rich countries will be asked to help developing countries, including Malaysia, to decarbonise.
According to an assessment by the International Energy Agency, to keep temperature increase between 1.5 degrees Celsius to 2 degrees Celsius will require nearly 95% of global electricity to come from low-carbon sources, 70% of new cars to be electric-powered, the entire building stock to be retrofitted, and CO2 intensity of the industrial sector to be 80% lower than it was in 2017.
Tackling two years of neglect
Such dramatic shifts demand not only adoption of new technologies, but also new financing models and behavioural changes starting from the household unit.
The new government being formed will have to tackle almost two years of neglect on decarbonisation issues including fuel subsidy and a new automotive policy to encourage the uptake of EVs.
When transport fuel is subsidised, there is often abuse of cheap fuel, such as motorists sleeping in their car during a lunch break, with the engine idling and the air-con switched on.
The automotive sector is racing ahead in Thailand, Indonesia and Vietnam while Malaysia’s has been stagnating since 2018 for the lack of a visionary automotive policy.
Any new national automotive policy will have to dovetail with the coming 12th Malaysia Plan and the world’s race to keep temperature increase to below 2 degrees Celsius of the temperature of a nation’s pre-industrial phase (1850-1990).
Some of the questions that were asked by the early adopters of EVs include:
•Will there be a vision of a hydrogen economy and funds for research and development (R&D) initiatives between the private sector and universities?
•Will there be a cash-for-clunkers scheme where transferable vouchers are exchanged for 30-year-old smokey cars to be scrapped?
•How will the government encourage the sales of EVs?
Going to the macro level and the world stage, who will represent Malaysia at the COP26 in November?
Since former prime minister Najib Razak represented Malaysia at COP21 in Paris, would it be Ismail Sabri Yaakob, the new prime minister, at COP26 in Glasgow, UK?
It would be interesting to learn how our new leaders position Malaysia’s automotive industry to ride on the new global wave of decarbonisation and climate change.
The views expressed are those of the writer and do not necessarily reflect those of The Independent.
