Rafizi Lower Fuel Prices Won T Help Renewable Energy Goals


 


Lowering fuel prices would be counterproductive to plans to transition to renewable energy, said Economy Minister Rafizi Ramli.
Citing the government’s goal to transition to renewable energy within the next 30 years, he called on the people to change their thinking as far as fuel prices are concerned.
“Any populist decision on fuel will be counterproductive to the long-term target.
“The country can’t afford it anymore because fuel and power subsidies easily contribute to 25 percent of our operating budget every year,” said Rafizi (above), according to a report by news portal Free Malaysia Today.
He told reporters at the Affin Conference Series 2023 that if the government was too generous in providing fuel and power subsidies, it could lead to a huge expenditure of RM80 billion out of a total of RM300 billion allocated for operating costs.
Rafizi said that a move towards renewable energy was the way forward, adding that Malaysia has the potential to be a regional leader in leading the energy transition.
He also called for a greater emphasis on green economy practices, such as low carbon emissions, resource efficiency, and social inclusivity across all sectors and industries in the country.
He added that Malaysia is set to roll out its Energy Transition Roadmap in phases starting next month, putting the country’s net zero ambition into action by identifying key impact initiatives and implementation plans for the next two decades.
Rafizi said the roadmap outlines the government’s move to achieve its renewable energy capacity target of 70 percent by 2050.
“We will launch the first phase by end-June, which includes strategic projects and initiatives such as hydrogen and solar farms as well as the renewable energy special zone special zone.
“Phase two will be in August this year (involving) the enablers - by that I mean the legislative reforms, incentive fundings that are available that we will put through to accelerate the transition,” he said. - Mkini


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