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Charting the Course to Net Zero: A Critical Step Towards Our Green Future

The global fight against climate change necessitates a significant reduction in greenhouse gas (GHG) emissions. Aiming for net zero emissions represents the ultimate goal, requiring a comprehensive approach that tackles all GHGs, not just carbon dioxide (CO2). This goes beyond carbon neutrality, which focuses solely on an organisation's operational CO2 emissions. Net zero aligns with the global push to limit global warming, as embodied by international agreements.

Understanding Net Zero

The United Nations Net Zero Coalition defines net zero as achieving a balance between all human-caused GHGs (CO2, methane, nitrous oxide, etc.) across a company's entire value chain, encompassing operations, fuel extraction, transportation, and product use. This comprehensive approach addresses the full spectrum of climate-warming gases, leading to a more significant and lasting impact on global warming.

Carbon Neutrality vs. Net Zero

The distinction between net zero and carbon neutrality lies in the scope of emissions addressed.

Term Scope of Emissions Focus Why it Matters
Net Zero All human-caused GHGs across the entire value chain. Comprehensive approach to tackling climate change. Addresses the full range of climate-warming gases for a more significant impact.
Carbon Neutrality Only an organisation's operational CO2 emissions. Balancing CO2 emissions through reductions and offsets. Mitigates climate change by balancing emissions through reductions and offsets.

The National Push for Net Zero

Many countries, including Malaysia, are actively pursuing net zero goals. The Malaysian government's National Energy Transition Roadmap (NETR) outlines a comprehensive strategy to achieve net zero emissions.

As a key player in Malaysia's energy sector, we (TNB) are actively aligning our sustainability strategy with the goals outlined in NETR. This collaborative effort ensures a unified approach towards a cleaner energy future for Malaysia.

Renewable Energy Expansion:

In 2023, our renewable energy capacity surpassed 4,375 MW, driven by projects like the Nenggiri Hydroelectric Project and the ongoing Large-Scale Solar (LSS) programme.

Cleaner Technologies:

We are transitioning to cleaner technologies, such as High-Efficiency, Low-Emissions (HELE) plants for coal-fired power generation, alongside meticulous emission monitoring and control in existing facilities.

Innovation and Collaboration:

To further reduce our environmental footprint, exploration and investment in innovative solutions like carbon capture, utilisation, and storage (CCUS) are underway. Collaborative efforts with research institutions and industry partners accelerate the development and deployment of sustainable solutions.

Paving the Path to Net Zero as part of Carbon Neutrality Context

We are actively pursuing our Energy Transition plan to address the growing need for sustainable and low-carbon energy. The transition focuses on increasing the share of renewable energy in its portfolio, particularly solar, wind, and hydro power, while gradually reducing reliance on fossil fuels. Additionally, we are modernizing the power grid and improving energy efficiency across our operations, all of which contribute to reducing carbon emissions.

The terms Carbon Neutrality and Net Zero are both important in the context of decarbonization. Carbon Neutrality refers to balancing the carbon emitted with an equivalent amount of carbon removed or offset. While this approach may involve actions such as investing in carbon offset initiatives or planting trees, it can sometimes focus more on compensating for emissions rather than actively reducing them. In contrast, Net Zero requires the reduction of all greenhouse gas emissions to zero, with any remaining emissions offset as the last resort. This emphasizes emission reduction at its core and has become the leading global framework for addressing climate change.

TNB’s Energy Transition plan aligns towards the concept of Net Zero. By focusing on decarbonizing its energy generation sector and reducing its emissions through the adoption of renewable energy, grid modernization, and energy efficiency initiatives, TNB is taking concrete steps to minimize its carbon footprint. While offsetting measures like carbon offset may play a role, the primary goal is to reduce emissions as much as possible before considering offsets. Therefore, TNB’s transition represents a strategic shift towards achieving Net Zero, aiming to minimize its environmental impact through sustainable practices and technologies.

Transparency and International Commitment

Our commitment to sustainability extends beyond these initiatives. Our efforts exemplify environmental stewardship for Malaysia and contribute to the global fight against climate change:

Sustainability Reporting:

Regularly published sustainability reports aligned with the Global Reporting Initiative (GRI) Standards provide transparency and allow stakeholders to track progress.

Signatory to International Agreements:

Aligning with international efforts to combat climate change demonstrates our commitment to a sustainable future.


TNB is also a signatory to the Paris Agreement, a landmark international agreement that aims to limit global warming. Aligning its strategies with the Paris Agreement demonstrates the company's commitment to mitigating climate change on a global scale.

As we continue our stride, we acknowledge that the path to net zero emissions is a challenging journey, but a necessary one that requires a multi-layer approach. Prioritising renewable energy, cleaner technologies, innovation, and collaboration are crucial steps towards achieving carbon neutrality by 2050 and ultimately reaching net zero emissions.


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