Yes, Malaysia has signed the Paris Agreement on 22 April 2016 and ratified it on 16 November 2016.

Malaysia's INDC  is to reduce GHGs emissions intensity of GDP by 45% by 2030 relative to the emissions intensity of GDP in 2005.  35% of this target is on an unconditional basis and a further 10% of the target is conditional upon receipt of climate finance, technology transfer and capacity building from developed countries.

In an interview with a news outlet on 21 April 2021, the Secretary-General of the Ministry of Environment and Water (formerly known as the Ministry of Energy, Science, Technology, Environment and Climate Change), Datuk Seri Zaini Ujang stated that Malaysia is in the midst of updating its NDCs under the 12th Malaysia Plan (2021-2025) (12MP).

Furthermore, in a statement issued by the Ministry of Environment and Water on 12 April 2021, the Ministry, in collaboration with the Malaysian Green Technology and Climate Change Centre, Climate Governance Malaysia and World Wide Fund for Nature Malaysia organized a Roundtable Discussion on Low Emissions Pathway. At the session, it was discussed that the Ministry is currently developing a Long-Term Low Emissions Strategy to be presented at the United Nations Framework Convention on Climate Change (UNFCC). Furthermore, the low emissions strategy approach is one of the nation’s approaches to achieving the target of reducing greenhouse gases in the long term. Furthermore, the Ministry would be updating its commitments under the UNHCC on the reduction of greenhouse gas emissions, which we understand refer to Malaysia’s NDCs to the Paris Agreement.

National policy instruments include as below:

1. National Policy on the Environment (2002): Aims to continue the economic, social and cultural progress of Malaysia and enhance the quality of life of its people through environmentally sound and sustainable development.
2. National Policy on Climate Change (2009): Aims to ensure climate-resilient development to fulfill national aspirations for sustainability. The objectives of which include mainstreaming climate change through wise management of resources and enhanced environmental conservation.

Malaysia's national long-term GHGs reduction target is to reduce GHGs emissions intensity of GDP by 45% by 2030 relative to the emissions intensity of GDP in 2005. This consists of 35% on an unconditional basis and a further 10% is conditional upon receipt of climate finance, technology transfer and capacity building from developed countries.

Furthermore, in a statement issued by the Ministry of Environment and Water on 12 April 2021, the Ministry, in collaboration with the Malaysian Green Technology and Climate Change Centre, Climate Governance Malaysia and World Wide Fund for Nature Malaysia organized a Roundtable Discussion on Low Emissions Pathway. At the session, it was discussed that the Ministry would be undertaking a review of the National Policy on Climate Change.

There are national policies and legislation adopted in limiting or prohibiting the use of certain fossil fuels which include as below:

1a. National Biofuel Policy 2006: Promote the production and consumption of biodiesels.

1b. Malaysian Biofuel Industry Act 2007 and its regulations: Provide for the mandatory use of biofuel for certain industries and the blending percentage of such biofuels.

1c. Biodiesel program

Subsequent to the Malaysian Biofuel Industry Act 2007, the Government has introduced the B5 biodiesel program, which is a blend of 95% petroleum diesel and 5% biofuels for the land transport sector in 2009, 2011 and 2013

The B10 biodiesel program was made mandatory for the transportation sector from February 2019. The B10 program increases the minimum content of palm biofuel local producers must add to their biodiesel fuel to 10%.

The nationwide implementation of the B7 Biodiesel Programme for the industrial sector commenced on 01 July 2019.

The B20 program for the transportation sector was implemented in phases, starting in Langkawi and Labuan on 1 and 15 January 2020 respectively, and later, in Sarawak on 1 September 2020.  Subsequently, the B20 program is scheduled to be launched in Sabah in June 2021 and Peninsular Malaysia in December 2021 tentatively.

On 28 March 2021, the Malaysian Palm Oil Board announced that, given the unprecedented economic impact of the Covid-19 pandemic, the implementation of the B20 mandate has been rescheduled given that the Government’s top priority is to revitalize the pandemic-impacted economy.

Back on 21 February 2020, at the launch of the National Automotive Policy, the then Prime Minister, Tun Dr. Mahathir Mohamad, stated that Malaysia is planning to implement a B30 biodiesel program by 2025 or earlier. The then Minister of Primary Industries, Teresa Kok Suh Sim, had also stated earlier on 20 February 2020 that DBKL will launch B30 field tests with MPOB in June 2020 by providing 30 to 50 diesel vehicles. However, given the change in the administration of the Government since then, it is unclear where the current stance is in respect of the proposal for the B30 biodiesel program.

2. Renewable Energy

Five-Fuel Diversification Policy 2001 was introduced under the 9th Malaysian Plan provided recognition of renewable energy as the fifth fuel in addition to oil, gas, coal and hydro under the Four-Fuel Policy 1981. One of the aims of the Five-Fuel Diversification Policy was to generate 5% of the country's electricity from renewable resources by 2005, however, only 3% of the target was met.

As the ideal electricity generation mix was unmet, the National Renewable Energy Policy 2010 (NREP) was introduced as part of the 10th Malaysian Plan to overcome the main barriers to renewable energy deployment in Malaysia and to provide a secure and sustainable national electricity supply. The NREP envisions that renewable resources will contribute 20% of electricity in Malaysia by 2025. 

3. National Policy on Energy to be adopted in H2/2021

The Minister in the Prime Minister’s Department (Economy), YB Dato' Sri Mustapa Bin Mohamed, stated in his ministerial address at the 13th International Petroleum Technology Conference held between 24 March 2021 to 1 April 2021, that the Economic Planning Unit of the Prime Minister’s Department is in the final stage of formulating a National Policy on Energy, which will be launched in the second half of 2021 and shall serve as the planning and development agenda for the country’s energy sector as it transitions towards a low carbon future. He added that there is an expectation for the rapid growth of non-traditional sources of energy, including hydrogen and nature-based solutions in light of the adoption of countries and players committing themselves to a net-zero carbon future.

There is currently no specific legislation on climate change implemented in Malaysia.

In an interview with a news outlet on 21 April 2021, the Secretary-General of the Ministry of Environment and Water, Datuk Seri Zaini Ujang said that a Cabinet meeting on 23 December 2020 had agreed for the Ministry to develop a specific climate change legislation, which is hoped shall come into force in three (3) to four (4) years.

Malaysia is a party to both the Kyoto Protocol and the Paris Agreement, which is to replace the Kyoto Protocol in 2020, both of which have some mechanism for carbon credit trading. 

Under the Kyoto Protocol, Malaysia as a developing country (non-Annex 1 country) has undertaken emission reduction projects (Clean Development Mechanism (CDM) Projects) to earn carbon credits (Carbon Emission Reductions (CER)) to offset their emission targets, where such carbon credit/CER can also be traded with developed countries (Annex 1 countries) so that they can meet their emission targets. 

Under the Paris Agreement, Article 6.4  provides for a central UN mechanism to trade credits from emissions reductions generated through specific projects.

Currently, there is no national CO2 tax.

On 22 September 2020, the Secretary-General of the Ministry of Environment and Water, Datuk Seri Zaini Ujang, said at a webinar, “The CIMB Cooler Earth Sustainability Summit 2020”, organized by CIMB Group Holdings Berhad, that the Ministry was contemplating the implementation of a carbon tax. There has not been any further indication since then of the Government’s intentions in respect of a carbon tax.

However, the Environmental Quality Act 1974 (EQA) provides that the Minister in charge of environmental protection may make an order for the imposition and collection of a cess on waste generated, where such cess collected shall be paid to the Environmental Fund.

Further, the EQA provides that the Minister may require any persons engaged in the following activities to contribute to the Environmental Fund at a rate he may specify:

the exploration, extraction, refining, production, bulk movement, distribution or storage, of oil or gas;

the production, bulk movement, distribution or storage, of environmentally hazardous substances; or

the bulk movement or storage, of waste.

The funds in the Environmental Fund may be used for prescribed purposes including the coordinating of research in relation to any aspect of pollution; recovering of waste or disposing of or mitigating pollution; preventing or combatting the spillage discharge or dumping of oil, discharge or dumping of environmentally hazardous substances, discharge or dumping of waste; encouraging conservation measures against any damage that may be caused by any of the occurrences above.

It can be anticipated that the scope of the Fund can be widened by imposing a carbon tax and by making the financial resources, collected through it, part of the Fund.

No, not to our knowledge.

Yes, such as :

1. Feed-in Tariff (FiT) System under the Renewable Energy Act 2011, where licensed distributors of energy (e.g. Tenaga Nasional Berhad) are required to purchase and distribute electricity generated from renewable resources by a Feed-In Approval Holder (FiAH) in priority to electricity generated from non-renewable resources.  The licensed distributors are required to purchase electricity generated from these renewable resources for a specific duration of time at FiT rates which generally exceed the cost of generating an equivalent amount of electricity from non-renewable sources.

The renewable resources which qualify to participate in the FiT System are biogas, biomass, small hydropower, solar photovoltaic and geothermal.

2. Green Technology Financing Scheme (GTFS) 2.0: extension of the GTFS until the end of 2020 - provision of governmental loans for green technology projects including those in the energy sector. The Minister of Finance, YB Senator Tengku Dato’ Sri Zafrul Tengku Abdul Aziz, announced in his Budget 2021 speech on 6 November 2020 that the Government will continue with the GTFS 3.0, the extension to the GTFS 2.0, with a fund of RM2 billion for two (2) years until 2022 which shall be guaranteed by Danajamin Nasional Berhad (Danajamin) to promote the issuance of Sustainable and Responsible Investment (SRI) Sukuk. Based on the official website of Danajamin, the GTFS 3.0 has been launched and is currently welcoming applications and now includes the issuance of SRI Sukuk and green bonds, however the official website for the Green Technology Financing Scheme provides that the details of the GTFS 3.0 are in the midst of being developed and are yet to be published.  

National measures include the below: 

1. Tenth Malaysia Plan (2011-2015): Initiatives in the building sector include: Wider adoption of Green Building Index (GBI);  revision of the Uniform Building By-Laws to incorporate the Malaysian Standard: Code of Practice of Energy Efficiency and Renewable Energy for Non-Residential Buildings to allow for integration of renewable energy systems and energy-saving features in buildings;  and increasing the use of thermal insulation for roofs in air-conditioned buildings to save energy.
2. Green Building Index (GBI) (2009): Profession-driven initiative, developed as a rating tool to promote green technology in the buildings sector, raising awareness among developers and building owners about design and construction of green and sustainable buildings. Not mandatory unless specifically stipulated by an individual Local Authority. 
3. Eleventh Malaysia Plan (2016-2020): encourages widespread adoption of green buildings criteria. New government buildings will adopt green features and designs and use green building materials. Existing government buildings will be gradually retrofitted. Industry players will be encouraged to obtain green certification for private buildings such as the Green Building Index. 
4. Second National Urbanization Policy (2016): one of its principles is to have green buildings and a clean environment. 
5. Third National Physical Plan (2016): one of its goals is to achieve a resilient and livable nation where one of the three strategic thrusts is to have climate change resiliency where there will be low carbon cities and sustainable infrastructure.
6. Low Carbon Cities Framework (LCCF) (2011): Provide guidance for Local Authorities, universities and any other regions to transform their cities into low carbon cities.
7. Malaysian Carbon Reduction and Environmental Sustainability Tool (MyCrest) (2015): Adopted to encourage construction of green buildings

National measures include the below:

1. Bio-Diesel B5 Programme (2009): Introduction of a blend of 95% petroleum diesel and 5% biofuels for automotive fuel in 2009, 2011 and 2013.
2. Bio-Diesel B7 Programme (2014): Introduction of an increased blend of 10% biofuels in biodiesel for automotive fuel.
3. Bio-Diesel B10 Programme (2019): Introduction of an increased blend of 10% biofuels in biodiesel for automotive fuel.
4. Bio-Diesel B20 Programme (2020): Introduction of an increased blend of 20% biofuels in biodiesel for automotive fuel.
5. Extension of the Light Rail Transit (LRT) system to reduce traffic congestion and development of the Mass Rapid Transit (MRT)
6. National Automotive Policy (2014): its objectives include developing Malaysia as a regional automotive hub in Energy Efficient Vehicles (EEV)
7. Green Technology Financing Scheme 2.0: until the end of 2020 - provision of governmental loans for green technology projects including those in the transportation sector.

National measures include the below:

1. National Petroleum Policy (1975): Aimed at adequate and cost-effective energy generation and supply, promoting best utilization and conservation of energy, and alleviating the negative impact of energy generation on the environment.
2. National Renewable Energy Policy and Action Plan (2010): Introduced the Renewable Energy Act 2011, establishing the Feed in Tariff (FiT) and Renewable Energy Fund to finance FiT.

• The FiT is a mechanism that allows electricity that is produced from indigenous renewable energy resources to be sold to power utilities at a fixed premium price for a specific duration - this provides a conducive and secured investment environment that makes financial institutions more comfortable in providing loans with longer periods.

3. Expanded National Biomass Strategy 2020 (2013): Assessing ways Malaysia could develop new industries by utilizing biomass from all types of sources (e.g. palm oil, wood, rubber, rice husk)  to create high-value products, with the expanded scope including biomass from the forestry sector and other agricultural crops.
4. MyCarbon Reporting Programme (2013): Voluntary reporting mechanism developed by the then Ministry of Natural Resources and Environment and UNDP to encourage and facilitate private entities to measure and report their GHGs emissions.
5. Bio-Diesel B7 Programme (2019): Introduction of a blend of 93% petroleum diesel and 7% biofuels for the industrial sector.
6. Extension of Green Income Tax Exemption for the use of green technology services and system, and Green Investment Tax Allowance for the purchase of green technology assets, until 2023
7. National Green Technology Policy (2009):

Its objectives include

• to minimize the growth of energy consumption while enhancing economic development;
• to facilitate the growth of the green technology industry;
• to increase national capability and capacity for innovation in green technology development.

8. Setting up of  Malaysia Green Technology Corporation (GreenTech) to catalyze green technology deployment as Malaysia's strategic engine for socio-economic growth.

Environmental Quality Act 1974 and certain regulations made under it generally prohibit the emission of environmentally hazardous substances into different areas of the environment above the prescribed limits.

9. Environmental Quality (Prohibition on the Use of Chlorofluorocarbons and Other Gases As Propellants and Blowing Agents) Order 1993: legislation to prohibit the use of controlled substances such as chlorofluorocarbons, as it is known as an ozone-depleting substance.
10. Environmental Quality (Halon Management) Regulations 1999: legislation to prohibit the use of new halon fire extinguishing systems and to regulate the discharge of halon from existing fire extinguishing systems.
11. Environmental Quality (Refrigerant Management) Regulations 2000: legislation to regulate the use, discharge and movement of refrigerants and to impose duties on manufacturers of refrigeration or air-conditioning equipment when removing refrigerants from said equipment.
12. Hydrogen Cyanide (Fumigation) Act 1953: to regulate the fumigation of premises and articles with hydrogen cyanide.

On 1 March 2020, the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, announced that under the 12MP, the Government will prioritise speeding up a shift towards a green economy to support the agenda of sustainable development and turning Malaysia into a low-carbon nation. This is also echoed by the Minister in the Prime Minister's Department (Economy), YB Dato' Sri Mustapa Bin Mohamed, in the press on 13 March 2021.

The Minister in the Prime Minister’s Department (Economy), YB Dato' Sri Mustapa Bin Mohamed, stated in his ministerial address at the 13th International Petroleum Technology Conference held between 24 March 2021 to 1 April 2021, that the Economic Planning Unit of the Prime Minister’s Department is in the final stage of formulating a National Policy on Energy, which will be launched in the second half of 2021 and shall serve as the planning and development agenda for the country’s energy sector as it transitions towards a low carbon future. He added that there is an expectation for the rapid growth of non-traditional sources of energy, including hydrogen and nature-based solutions in light of the adoption of countries and players committing themselves to a net-zero carbon future.

On 4 July 2019, the then Minister of Energy, Science, Technology, Environment and Climate Change, Yeo Bee Yin, had announced to the media that the draft of the Energy Efficiency and Conservation Act (EECA) had been approved by Cabinet about a month prior to the announcement. The EECA is intended to provide a more comprehensive regulation governing energy use in industries, buildings and electrical appliances and introduce the regulation of thermal energy where only electrical energy is regulated. However, there has since been a shift in the administration of the Government and it is unclear what the current intended prospects are for the EECA.

In a statement issued by the Ministry of Environment and Water on 12 April 2021, the Ministry, in collaboration with the Malaysian Green Technology and Climate Change Centre, Climate Governance Malaysia and World Wide Fund for Nature Malaysia organised a Roundtable Discussion on Low Emissions Pathway. At the session, it was discussed that the Ministry would promote institutional strength through the establishment of a National Centre for GHG Inventories.

"National measures include the below: 

1. Biomass Power Generation and Cogeneration in Palm Oil Industry (BIOGEN) (2002): Focuses on palm oil industries and the use of waste material in generating electricity in the mills and selling it to the grid where possible
2. Third National Physical Plan (2016): Provides a long-term strategic framework for national spatial growth and resource management - this includes national spatial sustainability planning for the sustainable management of natural, food and heritage resources, and for holistic land-use planning. 
3. MRIA 1 (2013): The Government introduced a new aerobic paddy variant resistant to heat and water scarcity to be able to be planted in areas with poor water supply.
4. National Agrofood Policy (2011): Focusing on improving the efficiency of the agro-food industry in Malaysia to provide sustainable agricultural development. 
5. Malaysian Good Agricultural Practices (MyGAP) (2013): Introduces agricultural practices emphasizing environmental, economic and social aspects to ensure safe and good quality produce. The 11th Malaysian Plan states that the MyGAP will be streamlined with GlobalGAP requirements. 
6. 11th Malaysian Plan (2016-2020): 

Aims to increase the resilience of the agriculture sector, where research and development, especially in agriculture-climate modeling, will be intensified and adoption of good agricultural practices will be extended to new crops and farms. 

Incentives will be provided to encourage compliance of farmers to the MyGAP certification and other certifications such as the Malaysian Sustainable Palm Oil (MSPO), a sustainable palm oil certification scheme.

National measures include the below:

1. National Energy Policy (1979): To ensure efficient, secure and environmentally sustainable supplies of electrical energy.
2. Electricity Supply Act 1990: To provide for the efficient use of electricity
3. Energy Commission Act 2001: Promote efficiency, economy and safety in the generation, production, transmission, distribution supply and use of electricity.
4. National Energy Policy (2008): To raise public awareness of the benefits and opportunities of renewable energy technologies and developing the capacity for their implementation and promoting renewable energy technologies for electricity generation.
5. Efficient Management of Electrical Energy Regulations (EMEER) 2008: Installations that consumed or generated electrical energy for own consumption equal to or more than 3,000,000 kWh for 6 consecutive months are mandated to comply with the efficiency regulation.
6. National Renewable Energy Policy and Action Plan (2010): Enhance utilization of indigenous renewable energy resources to contribute towards national electricity supply security and sustainable socio-economy development
7. National Renewable Energy Policy and Action Plan (2010): Introduced the Renewable Energy Act 2011, establishing the Feed-in Tariff (FiT) to catalyze the generation of electricity from Renewable Energy sources and establishing Renewable Energy Fund to finance FiT.
8. The FiT is a mechanism that allows electricity that is produced from indigenous renewable energy resources to be sold to power utilities at a fixed premium price for a specific duration - this provides a conducive and secured investment environment which makes financial institutions more comfortable in providing loans with longer periods.
9. National Energy Efficiency Action Plan (NEEAP) (2016-2025): To implement energy-efficient plans in three main sectors: Equipment, Industrial and Buildings.
10. Net Energy Metering (NEM) (2019): To complement the current FiT and Large Scale Solar programs to reduce dependency on imported fossil fuels. On 30 December 2020, the Ministry of Energy and Natural Resources announced the introduction of the NEM 3.0 program, pursuant to the 500MW quote under the previous NEM 2.0 program is fully taken up, which introduces three (3) new initiates: (a) NEM Rakyat (for domestic consumers); (b) NEM GoMEn (for government ministries and agencies); and (c) Program NOVA (Net Offset Virtual Aggregation) (for commercial and industrial customers). Malaysia implemented the Large Scale Solar competitive bidding program, with the first tender in 2016. This is aimed to reduce the cost of energy by developing LSS photovoltaic plants. After a second-round in 2017 and a third-round in 2019 of bidding, there has just been recently completed another round of bidding where 30 bidders were shortlisted as announced by the Energy Commission on 12 March 2021.
11. The Sustainable Energy Development Authority (SEDA) introduced small hydropower and biopower technologies bidding in 2019 and in addition, the Government also carried out e-bidding for biogas, the first of which was in 2018.
12. The Malaysia Electricity Supply Industry 2.0 was introduced in 2019 to liberalize the distribution components of the power industry in Peninsular Malaysia and also to promote the use of green energy in Malaysia. The Government announced in March 2021 that It will be reviewed to ensure that implementation does not burden consumers.

Examples of measures by national financial institutions are as below:

1. Green Technology Financing Scheme (GTFS) (2010): To promote green investments by providing easier access to financing and at lower financing costs
2. Green Sukuk Programme (2017): Aim to encourage investments in green or sustainable projects through the development of green Islamic finance markets
3. Green Technology Financing Scheme 2.0 (2019): Extension of GTFS to provide financing for investment for projects relating to the production and utilization of green technology.
4. Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE).
5. NaviGate: Capital Market Green Financing Series (2021): To connect micro, small and medium enterprises to alternative capital market financing initiatives such as Equity Crowdfunding (ECF) and Peer-to-Peer (P2P).
6. Bank Negara Malaysia or “BNM” (National Bank) (2019):

• BNM announced in September 2019  the formation of the Joint Committee on Climate Change (JC3) with the Securities Commission Malaysia (SC), which is intended to pursue collaborative actions for building climate resilience within the Malaysian financial sector. The JC3 recognizes the urgent need to accelerate responses towards ensuring a smooth and orderly transition to a low-carbon economy. This includes managing exposures to climate risks and facilitating businesses to transition towards sustainable practices.
• The Discussion Paper on Climate Change and Principle-based Taxonomy Paper were published by BNM on 27 December 2019 and provides guidance to financial institutions which are licensed under the Financial Services Act 2013 on the identification of climate-related risks for integration into their business strategies and risk management practices and the assessment of economic activities supporting the transition to low carbon and climate-resilient economy which should be prioritized in their financing, underwriting and investment decisions. In a joint statement dated 25 February 2021 issued by BNM and the SC on its 4th meeting, it was discussed, inter alia, that the JC3 sub-committees had in 2020 completed a number of key initiatives, including the broad-based consultation and pilot implementation of the discussion paper.

There are environmental courts to hear environmental-related matters such as those regulated under the Environmental Quality Act 1974, but we are not aware of any climate change litigation case.

Examples of other policies relating to the environment/climate:

1. National Depletion Policy 1980: To safeguard exploitation of natural oil reserves because of the rapid increase in the production of crude oil
2. National Forestry Policy (passed in 1978 but revised in 1992): To promote biological diversity conservation and sustainable utilization of genetic resources
3. National Biodiversity Policy 1998: Aimed to conserve Malaysia's biological diversity and to ensure that its composition is utilized in a sustainable manner for continued progress and socio-economic development of the nation.
4. Small Renewable Energy Programme (SREP) (2001): Aimed at supporting the Government's strategy to intensify the development of renewable energy as the fifth fuel resource
5. Ninth Malaysia Plan (2006-2010): Introduces Flood Mitigation Projects such as SMART Tunnel and Sungai Damansara Flood Mitigation Plan
6. Tenth Malaysia Plan (2011-2015): Continuation of Flood Mitigation Project with 194 projects, 32 hazard maps developed to facilitate disaster prevention and development 
7. National Water Policy (2012): To treat water as an economic good and to promote its conservation and efficient use
8. National Policy on Biological Diversity 2016-2025 (2016): Formulated to ensure conservation and sustainable use of natural resources and the environment.
9. Green Technology Master Plan (2017-2030): Creates a framework that facilitates the mainstreaming of green technology into planned developments
10. Renewable Energy Transition Roadmap 2035 (2019): currently being developed to explore the possible strategies and action plans to attain the Government’s aspirational renewable energy target of 20% in the national power mix by 2025. 
11. First National Physical Plan (2005): To preserve central forest spine in Peninsular Malaysia.