MGTC signs MoU with ABB, Atlas Copco, Daikin and Business Sweden to step-up energy efficiency progress

• Like-minded stakeholders initiate National Energy Efficiency Collaboration (NEEC)

• Significant milestone to realize key energy efficiency initiatives in the National Energy Transition Roadmap

• Private-Public Partnership to scale up and speed up deployment of innovative technologies and solutions

ABB Malaysia Sdn Bhd, Atlas Copco (Malaysia) Sdn Bhd, Daikin Malaysia Sales & Service Sdn Bhd and Business Sweden have signed a Memorandum of Understanding (MoU) today with the Malaysian Green Technology and Climate Change Corporation (MGTC) to formalize their collaboration and cooperation to push energy efficiency into a higher gear.

The agreement is timely given the Government’s renewed commitment and target of achieving an average of 21% energy savings by 2040 under the National Energy Transition Roadmap (NETR). With its cost efficiency and optimisation of resources, energy efficiency has been recognized as the most important lever in the NETR. Underpinning the value of urgent action in this area, as much as RM6 billion worth of investments from now to 2040 is expected, with smart device installation and government building retrofits being prioritized.

The International Energy Agency, states that energy efficiency as ‘the first fuel’ represents the cleanest and, in most cases, cheapest way to meet energy needs. There is no plausible pathway to Net Zero without using our energy resources much more efficiently.

The MoU was signed by R Narayanan, Director, ABB Malaysia Sdn Bhd and Group Senior Vice President, ABB Motion, Asia; Khalid Shaikh, General Manager, Atlas Copco (Malaysia) Sdn Bhd; Chan Hon Leong, General Manager, Daikin Malaysia Sales & Service Sdn Bhd; Emma Broms, Trade Commissioner, Business Sweden and Ts. Shamsul Bahar Mohd Nor, Chief Executive Officer, MGTC, at the 1st National Conference on Energy Efficiency held in conjunction with the International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM). On hand to witness the signing was YB Tuan Nik Nazmi bin Nik Ahmad, Minister of Natural Resources, Environment and Climate Change.

“Being far more energy efficient than we are today is a must for Malaysia. We have come a long way, but more needs to be done to enhance our energy affordability and security, without compromising on our climate goals,” said YB Tuan Nik Nazmi bin Nik Ahmad at the event. “Energy plays an important role in Malaysia’s sustainable growth. We rely on energy to fuel everything from transportation to communication, to cities and industries. The evolving landscape requires us to re-evaluate how we consume energy and the imperative to act quickly on energy efficiency has never been stronger,” he added.

In order to meet the nation’s carbon neutral ambition, MGTC has been actively promoting the Energy Management Standard, MyHijau Mark, Green Incentives and Low Carbon Operating System to bring energy efficiency to the fore.

“The participation of ABB, Atlas Copco, Daikin and Business Sweden as founding partners in the NEEC is a cornerstone in our efforts to achieve transformational energy efficiency progress. We look forward to more like-minded stakeholders stepping forward to lend their expertise, innovate, share knowledge and best practices, invest and create greater awareness on energy efficiency. The energy transition is not an easy process. All of us need to work alongside each other, as partners, to realize the high ambition of NETR, our critical compass to net zero,” said Ts. Shamsul Bahar Mohd Nor, Chief Executive Officer, MGTC.

The MoU covers the following areas:

• Advocacy for improvement of minimum energy efficiency standards for industry equipment and systems;
• Sharing of best practices and innovative technologies to accelerate retrofitting of public and government buildings;
• Engaging key stakeholders including energy providers, regulators, users and influencers in knowledge sharing dialogues on energy efficiency; and
• Establishing knowledge partners to expand the collaboration and to help industries identify technology and solutions that deliver the greatest value

“The NEEC is aligned with the global Energy Efficiency Movement founded by ABB to galvanize actions for an energy efficient, regenerative and adaptive world, which is now over 400 members strong. Globally, enhanced efficiency-related measures can provide one third of the emissions reductions needed for Net Zero. In Malaysia, there is enormous untapped potential for efficiency improvements in every sector of the economy. Through our cooperation with friends and peers from the industry, we hope to forge ahead to shape a sustainable and resource-efficient future for Malaysia,” said R. Narayanan.

“According to some energy experts, between 35% to 50% of the global energy consumption comes from industrial activities. In some of the more industrialised developing countries, the contribution of industry could be upwards of 50%. Energy conservation and gaining efficiency therefore become more of a compulsion than a choice. At Atlas Copco, we believe one of the best ways of conserving energy is through recovering and recycling energy. Atlas Copco, together with its industrial partners present in Malaysia can support local industries in not only meeting but exceeding the goals set in the National Energy Transition Roadmap (NETR),” said Khalid Shaikh.

“Everything we use goes through a life cycle, and each stage of the life cycle has an environmental impact. At Daikin, our leading innovation has consistently pushed the boundaries of HVAC technology, and our focus has always been beyond selling. We prioritize decarbonization to ensure the efficiency of our products during their entire life cycle. By becoming part of the NEEC today, we look forward to bringing this aspect into focus to move the needle on Malaysia’s energy transition,” said Chan Hon Leong.

“Business Sweden is thrilled to continue the collaboration between Malaysia and Sweden, enhancing the green transition. Our shared commitment to a more sustainable future has opened doors for innovation, knowledge exchange, and partnerships, which this MoU is a testament to. Sweden is a well-known sustainability leader and has energy efficiency as one of its main priorities and a central instrument to achieve our targets. The Swedish businesses in Malaysia are no exception and are accelerating the development together with their Malaysian partners and customers,” Emma Broms concluded.

Malaysian Green Technology and Climate Change Corporation (MGTC) is an agency of the Ministry of Environment and Water (KASA) mandated to drive the country in the scope of Green Growth, Climate Change Mitigation and Green Lifestyle. Three national policies, in particular, the National Green Technology Policy (NGTP), the National Climate Change Policy (NCCP) and the Green Technology Master Plan (GTMP), regulated MGTC's role as a catalyst for green economic growth. MGTC's initiatives and programs focus on achieving a long-term impact by 2030 with a 45% reduction rate in the country's greenhouse gas emissions, increasing GDP from green technology by RM 100 billion and generating 230,000 green job opportunities.

ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered, and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com

Atlas Copco Group - Great ideas accelerate innovation. At Atlas Copco we have been turning industrial ideas into business-critical benefits since 1873. By listening to our customers and knowing their needs, we deliver value and innovate with the future in mind. In 2022, Atlas Copco Group had revenues of BSEK 141 and at year end about 49 000 employees. For more information, visit: www.atlascopcogroup.com

Daikin, the Air Specialist, is a global leader in heating, ventilation, and air conditioning (HVAC) solutions and is a trusted partner in creating comfortable, sustainable living and working environments. With a rich legacy of innovation and a commitment to environmental responsibility, Daikin is at the forefront of revolutionizing how we experience indoor comfort while minimizing our impact on the planet. We are pioneers of comfort and sustainability, and our unwavering commitment to innovation ensures that every step we take leads us toward a greener, more energy-efficient future. For more information, visit: www.daikin.com.my

Business Sweden is jointly owned by the Swedish state and the Swedish business sector with a mandate and a mission to help Swedish companies grow global sales and international companies to invest and expand in Sweden. Business Sweden creates awareness around sustainability and its impact on business. Since 2005, Business Sweden is present in Malaysia and offers local support and advises Swedish companies how to strategically expand their business in the area.