Malaysia: Green Pledge in Steel's Future
Malaysia's Ministry of Investment, Trade & Industry plans to establish an independent committee focused on securing green financing for the steel industry. This initiative aims to reduce carbon emissions and encourage a transition to greener practices within the sector.
In a move towards environmental responsibility, Malaysia's Deputy Minister of Investment, Trade and Industry announced the formation of a new independent committee. This committee's goal is to find ways to fund the transition of the iron and steel industry to zero carbon emissions.
At a trade forum today, the Deputy Minister revealed that the committee would be chaired by the CEO of HSBC Bank Malaysia. They aim to address the significant carbon footprint of the steel industry, which is responsible for 28% of the nation's manufacturing emissions.
Recognizing both the environmental urgency and the potential for green investment, the government is preparing to incentivize the steel industry's efforts to decarbonize. Incentives might include financial support for companies that adopt greener practices.
Furthermore, the Malaysian Steel Association has been tasked with creating a masterplan for this green transition. This masterplan will outline steps to reduce the industry's environmental impact while maintaining economic productivity.
The Deputy Minister also highlighted the need for regional cooperation in Southeast Asia to tackle the issue of overcapacity in the steel industry. He suggested looking towards China's recent successes in reducing excess steel capacity as a model for regional strategy.
He emphasized the importance of bilateral talks and broader ASEAN discussions to address this challenge. With the steel capacity in Southeast Asia projected to double by 2026, the urgency for a coordinated response is clear.
This initiative by Miti is a proactive step towards a more sustainable and environmentally friendly steel industry in Malaysia and the region.
The Malaysian government's initiative to form a committee for green financing represents a significant step toward sustainability in the steel industry. With the potential to influence not just national but regional environmental and industrial policies, Malaysia is setting a precedent for the future of green industry practices.