{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.title}}
{{item.text}}
The recent threat of climate change has urged us to decarbonise and shift our energy generation from oil and gas to sustainable zero-carbon sources, mainly renewable energy.
What is energy transition?
Energy transition typically refers to the evolution of the global energy sector, from one form of energy production to another in terms of supply and consumption. This is driven by several factors, including the growing demand for more energy and the need for cleaner energy alternatives.
The recent threat of climate change has urged us to decarbonise and shift our energy generation from fossil fuel to a more sustainable, zero-carbon sources, mainly renewable energy. With the projection of a doubled energy demand by 2040 and the energy sector currently responsible for approximately 89%* of GHG emissions, the importance of energy transition becomes clear.
* ‘Global Energy Review: CO2 Emissions in 2021’, International Energy Agency
Why is it important?
The energy transition agenda is prompting companies to reassess their operations with greater scrutiny. As policies and regulations intensify, a strategic embrace of sustainability and a shift toward cleaner energy sources become imperative. This proactive approach goes beyond meeting environmental and social expectations; it positions organisations for enduring sustainability and resilience in a swiftly changing business landscape.
Embarking on this transformative journey now positions your organisation as a frontrunner in the pursuit of a sustainable future. Crafting a well-defined energy transition roadmap, complete with tangible milestones and timelines, not only enhances risk management but also empowers your organisation to create value that propels you towards achieving net zero. Here are the key benefits you will gain.
Risk mitigation
As regulations evolve, companies that proactively adopt sustainable practices are better positioned to navigate compliance challenges and avoid potential penalties
Cost savings
Transitioning to renewable energy can lead to long-term cost savings through reduced energy expenses and operational efficiencies
Competitive edge
Embracing energy transition enhances corporate reputation, attracting environmentally conscious consumers and investors, providing a competitive advantage in the market
Common challenges
To fully reap the benefits, your organisation needs to overcome these common challenges:
High initial costs:
The upfront investment for energy transition related projects can be substantial, posing financial challenges for companies.
Through our work, almost a third of companies we have worked with found that resource constraint was the biggest hindrance to expanding energy transition initiatives.
Capabilities gap:
As Malaysia progresses with its energy transition agenda through the National Energy Transition Roadmap, companies may struggle to find and develop talent with expertise in sustainable technologies.
This challenge is compounded by the complexity of energy transition strategies, which involve diverse initiatives, making it difficult for companies to implement and sustain these transformations without the right talent.
Return on investment (ROI) concerns:
Organisations may be hesitant due to uncertainty about the timeline for realising returns on their energy transition investments especially if only traditional financial metrics are used.
This uncertainty is compounded if grants and incentives provided by financial institutions, multilateral development banks and/or government are not utilised to minimise financing needs.
Case studies: Looking at problems from new angles to uncover new solutions
Developing a roadmap for Pahang’s net zero goals
As the ever-increasing need to meet the 2030 Climate Pledge draws closer, Malaysia gears up its efforts with the National Energy Transition Roadmap (NETR). Besides estimating that energy transition initiatives would require up to RM1.85 trillion in financing, NETR reinforces the commitment on reducing greenhouse gas (GHG) intensity against GDP by 45% in 2030 (compared to 2005 baseline).
In line with this, the Pahang state government is committed to achieve net zero by 2030 by developing its own net zero roadmap.
Here's how we delivered impact through the project:
Established baseline GHG emissions which can support the state government to decarbonise, aided by a governance framework for net zero
We opened up new sources of financing through a more diverse pool of funders among our global network’s diverse clientele
Developed a net zero roadmap structured around five transition pathways: Energy, transport and build environment, industry, land use, and nature
Identifying opportunities in the marine waste sector
A leading waste management company has started to operate port reception facilities (PRFs) in support of the 12th Malaysia Plan to promote the circular economy and to bolster their presence in the marine waste sector. PRFs serve as collection points for waste generated by ships. Following that, they plan to move further down the value chain by exploring IERC (integrated eco-recovery complex) projects which would allow them to monetise the collected waste.
Recognising the nuances of moving into a new segment, the company wanted to gain a better understanding of the marine waste sector.
Here's how we delivered impact through the project:
Ensured adaptability to varying waste types and volumes
Developed diverse models to support long-term viability and incorporate sustainable practices
Identified ports based on waste volume, infrastructure needs and regulatory support
Acquired specialised technology and expertise for efficient waste management and treatment
Forged alliances with government agencies, local communities, and industry players to enhance project feasibility and impact
Laying the foundation for a regional electric vehicle manufacturing hub
As countries race towards net zero, the demand for electric vehicles (EVs) has surged. The share of EVs to total cars sold globally is forecasted to grow to 75% by 2040. Malaysia, in line with this trend, targets an EV market share of 38% by 2040 in annual vehicle sales.
Our client looks to expand its Southeast Asian presence by establishing a regional manufacturing hub for EVs and extending its reach within the automotive supply chain.
Here's how we delivered impact through the project:
Signed a multi-year contract (first in Southeast Asia) with a leading EV manufacturer for vehicle assembly in Malaysia
Determined optimal market size for customers and revenue model of new products
Broke into a new business segment while leveraging on existing capabilities
How we can help
- Market assessment: Analyse current market trends, regulatory frameworks and technological developments to provide you with a comprehensive understanding of the energy landscape.
- Roadmap development: Provide support with planning and delivery of a strategy and roadmap which includes conducting due diligence for any acquisition, deals, M&A strategy and sourcing that will further strengthen transition goals.
- Redefine business models: Design and evaluate new business models aligned with your decarbonisation goals by identifying value propositions, method of revenue generation, supply chain and customer base.
Transition partnerships: Design sector-wide commercial models to drive collaboration between different parties which balances risk ownership and returns among stakeholders.
- Financial modelling: Conduct integrated financial modelling and risk analysis to ensure that your transition initiatives are economically viable and deliver long-term value.
- Cost analysis: Conduct in-depth analysis of cost components across the value chain to develop a holistic financial snapshot for commercial feasibility.
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Follow us
