With 2024 expected to be the hottest year on record , the world can no longer afford any delays in transitioning to a decarbonised energy system. Nonetheless, the path to a net-zero future isn’t as simple as just turning off all traditional fossil fuel-fired power plants and turning on more solar panels or wind turbines.
In fact, transitioning to new renewable technologies will take time and requires huge investments as well as careful management to avoid disrupting the status quo. Fortunately, there is one other powerful yet overlooked solution that doesn’t nearly get enough of the attention it deserves in today’s climate conversation: energy efficiency.
Fighting climate change isn’t just about how we power things; it’s also about what we’re powering – from our appliances and buildings to our public infrastructure. Which is why the International Energy Agency (IEA) describes energy efficiency as the “first fuel” in the fight against climate change, potentially cutting greenhouse gas emissions by 40% in just two decades .
Simply put, energy efficiency (EE) is the use of less energy to perform the same task or produce the same result – be it for cooling, heating, running appliances, and so much more. EE is broadly applied to refer to a host of updates meant to decrease the energy usage of electrical appliances, buildings, and other types of infrastructure.
When our goal is to consume less energy, we need to produce less energy, which is especially important considering we still burn fossil fuels like coal, oil and gas for electricity generation. What’s more, EE buildings and infrastructure are also generally better suited for integrating renewable energy sources like wind and solar power.
This ultimately reduces reliance on fossil fuels in the long-term, creating a positive feedback loop that allows more and more buildings to run on renewable energy. Beyond large-scale industrial and manufacturing upgrades, embracing EE also depends upon our personal choices as energy consumers.
Each one of us can take actionable steps towards reducing our individual carbon footprint by monitoring and managing our energy usage and consumption. EE behaviours promise to be a ‘win-win’: by reducing energy consumption, households can lower both their electricity bills and GHG emissions at the same time.
Ultimately, energy efficiency promises to be one of the easiest, most cost-effective ways to combat climate change, reduce energy costs, and achieve net-zero emissions.
Expanding the reach of Malaysia’s energy efficiency policies
Malaysia has long recognised the importance of EE in the nation’s net-zero journey, having launched the National Energy Efficiency Action Plan in 2016. More recently, the Energy Efficiency and Conservation Bill 2023 (EECA) represents a significant step forward, aligning with Malaysia’s net-zero aspiration pathway laid out by the National Energy Transition Roadmap (NETR).
This landmark legislation aims to enhance energy management practices among large consumers in the industrial and commercial sector, establishing a framework for monitoring and reporting energy use. For example, companies consuming energy exceeding 21,600 gigajoules are required to implement energy-saving measures and are subject to periodic energy audits.
One of the key features of the EECA is its focus on demand-side energy management. By regulating and incentivising energy efficiency, the bill supports Malaysia’s broader NETR, which seeks to achieve net-zero emissions by 2050, by providing a structured approach to energy conservation to deliver on the ambitious target.
Incentives such as the Green Investment Tax Allowance , Green Income Tax Exemption, and Green Technology Financing Scheme, are also a crucial aspect of the EECA. These incentives aim to encourage the adoption of energy efficient technologies and best practices in energy management, further supporting Malaysia’s transition to a greener economy.
But to truly realise our green ambitions, energy efficiency must extend beyond commercial and industrial users to households and individuals. The EECA’s approach could serve as a model for expanding energy-efficiency policies to the wider Malaysian public. Though individually smaller consumers, collectively they can have a substantial impact on the nation’s carbon footprint.
Expanding policies to boost energy literacy and positive behavioural changes will not only reduce energy consumption, but also empower individuals to make their own contribution towards Malaysia’s net-zero goals. A culture of energy efficiency, supported by robust energy education, will ensure that every sector of society plays a role in the nation’s sustainable future.
Business and communities must work together to drive change
Energy efficiency is now a global priority, with various international initiatives demonstrating its potential to drive substantial emissions reductions. Recent efforts, such as the highlight the growing recognition of energy efficiency as a key component in achieving climate goals across Europe and Central Asia. The E3 (Energy Efficiency in Europe and Central Asia), which stands for environment, energy, and economy; program aims to accelerate investments in energy efficiency projects, fostering sustainable development and climate resilience in the region.
The COP28 Global Renewable Energy Pledge , a cornerstone commitment aimed at accelerating the global transition to clean energy, includes a substantial 10-year programme to boost energy efficiency and renewable adoption. 10-year programme is projected to save over 63 terawatt hours (TWh) of energy over the lifetime of its investments – equivalent to the annual electricity production of Switzerland – and reduce CO2 emissions by 18.7 million metric tons. Initial funds have been earmarked for energy efficiency programmes in four countries, with more expected to join in the coming years.
Here in Southeast Asia, several countries have made significant strides in promoting energy efficiency at the consumer level. For example, Indonesia has made progress through its Energy Conservation Program , which includes measures to improve the efficiency of household appliances and promote energy-efficient appliances through awareness campaigns.
Similarly, the Philippines has successfully implemented the Efficient Lighting Initiative , which promotes the use of energy-efficient lighting solutions such as CFLs and LEDs. The initiative includes public awareness campaigns and partnerships with local governments to distribute energy-efficient lighting.
Malaysia has also seen success with the launch of the Malaysian Energy Literacy Programme (MELP). With collaboration as its driving strategy, the MELP has stakeholders across industries working together to catalyse impactful changes – enabling the programme to pool wider resources, gain a diverse perspective and amplify the reach of its initiatives.
Going forward, the MELP can be expanded to include measures to further incentivise Malaysians to adopt energy-saving practices. Subsidies or tax rebates for citizens that purchase energy-efficient homes or appliances for instance have proven to scale up sustainable behaviour change – while significantly cutting down on national emissions.
Finding ways to encourage energy users to change their behaviour is not always easy, but it can be done. In fact, simple actions are oftentimes the most effective.
Finding ways to encourage energy users to change their behaviour is not always easy, but it can be done. In fact, simple actions are oftentimes the most effective.Now is the perfect moment to consider behaviour, and there are plenty of successful global precedents when communities and businesses worked together to drive large-scale, society-wide change.
Taking charge to collectively build a sustainable future
For individuals and businesses alike, adopting energy-efficient measures offers both economic and environmental benefits. Simple actions at home and strategic upgrades in business operations can lead to substantial cost savings and contribute to a greener planet.
Upgrading to energy-efficient appliances, such as LED lighting can lower electricity bills and reduce carbon footprints for households. Additionally, improving home insulation and sealing leaks can enhance heating and cooling efficiency, leading to further energy savings.
As for businesses, conducting energy audits to identify inefficiencies and investing in energy-efficient machinery, processes, and building systems can enhance overall operational efficiency as well as generate cost savings.
Ultimately, embracing energy efficiency means making a meaningful contribution to the global fight against climate change. By taking charge of our own carbon footprints, everyone can help contribute to a more sustainable and energy-efficient future.