Heriot-Watt University Malaysia provost and CEO Mushtak Al-Atabi explained that when calculating carbon emission associated with economic and business activities, experts would consider three “scopes”.
“The first is direct emissions, which results, for example, from combustion of natural gas on the business premises. The second comes through indirect emissions of energy such as electricity and procured cooling, and the third is emissions through supply chains, electricity transmission and distribution losses,” he told FMT Business.
Mushtak said the first two scopes of calculation were “straightforward” but the third was the most difficult to quantify and where a considerable amount of emission exists.
“Business leaders are under pressure to provide some form of certainty when it comes to their strategies and action plans to achieve net zero emissions in their operations,” he said.
“However, we cannot provide certainty if we cannot agree on how to calculate and attribute emissions.”
The Edge had previously reported that 18% of Malaysian companies made net-zero commitments, compared with 26% in the Asia-Pacific.
However, Mushtak said Malaysia is not the only country affected by such an issue.
In March, minister in the prime minister’s department Mustapa Mohamed said Putrajaya might unveil the details of its 2050 net-zero emissions target this year.
He said the government was developing the framework, which includes exploring the introduction of a voluntary carbon market and carbon pricing mechanism such as carbon tax, as well as the expansion of green technology tax incentives.
Recently, the Securities Commission launched a new sukuk framework to help industries make the transition into a low-carbon or net zero economy.
While the complex nature of determining carbon level is a challenge, Mushtak said, businesses should refrain from using it as an excuse to not reduce the impact of their operations on the environment.
On whether or not the country could achieve its target in 28 years, he said it was important to set “ambitious” goals.
Malaysia’s goal of achieving the target, he said, had the potential to be a transformational project for the entire nation.
“And there are benefits as well, including the creation of high paying jobs in science, technology, policy, and even the arts,” he said.
“In other words, rising to this challenge can be a catalyst for the economy, enabling Malaysia to become a centre for solutions in this field towards becoming a high-income nation.
“The UK is the first country to publish an industrial decarbonisation strategy. Putrajaya can take a leaf from the UK book.”
The UK Industrial Decarbonisation Research and Innovation Centre (IDRIC) is led by researchers from Heriot-Watt University and it currently has over 140 partners to support the transition of industrial clusters to net zero emission.
“I feel that Malaysia can learn from this pioneering experience and adopt our own version of IDRIC to be a focal point for dialogue among industry leaders, regulators, policy makers and industrial communities, combining unmatched experience and specialised skills to unlock the wider economic and social benefits of industrial decarbonisation,” Mushtak said.
He said developing decarbonisation solutions for industry at the required scale and building an extensive knowledge exchange network involving universities and industry partners could bring significant value to Malaysia.
“In turn, it would be able to support the transition of existing industries to net zero emission and enable an ambitious research and innovation agenda,” he added.