Malaysia Launches NEEAP 2.0 to Achieve RM85 Billion Energy Savings by 2035

MALAYSIA has unveiled its National Energy Efficiency Action Plan 2.0 (NEEAP 2.0), aiming for RM85.24 billion (approximately USD 18.9 billion) in net energy savings by 2035. Launched by the Ministry of Energy Transition and Water Transformation (PETRA) during the 7th International Sustainable Energy Summit, this initiative is part of the country’s broader strategy to transition to net-zero emissions by 2050.

NEEAP 2.0 sets an ambitious target of an 11.6% improvement in energy efficiency across various sectors, including industrial, commercial, and domestic. This improvement is expected to yield cumulative energy savings of 815,000 terajoules (TJ), equivalent to the energy needed to meet the entire electricity demand of Peninsular Malaysia for nearly two years. The plan is also projected to attract RM36 billion (about USD 8.2 billion) in private investments and create approximately 29,000 new jobs, bolstering Malaysia’s green economy.

“The initiative will enhance energy efficiency and contribute to the growth of our green economy.”Akmal Nasrullah Mohd Nasir, Minister of Economy

According to PETRA, the implementation of NEEAP 2.0 is aligned with the Malaysia MADANI agenda, which promotes efficient and sustainable energy use while enhancing public wellbeing and supporting low-carbon development. The initiative is expected to reduce carbon emissions by an estimated 26 million tonnes of carbon dioxide equivalent (tCO₂eq) by 2035.

Deputy Prime Minister Datuk Seri Fadillah Yusof emphasized the importance of NEEAP 2.0 in fostering job opportunities and business potential. He noted that the plan builds on the success of the previous energy efficiency action plan, which exceeded its electricity savings target by achieving savings of 60,886 gigawatt-hours (GWh) against a target of 52,233 GWh, resulting in a reduction of 35.6 million tonnes of carbon dioxide equivalent emissions.

“NEEAP 2.0 is crucial for fostering job opportunities and business potential in our transition to a green economy.”Datuk Seri Fadillah Yusof, Deputy Prime Minister

The new plan will focus on four strategic pillars: implementing energy efficiency measures, enhancing workforce skills, establishing sustainable financing mechanisms, and facilitating private sector initiatives and investments. It aims to ensure that energy efficiency practices are deeply embedded in Malaysia’s economic fabric, promoting participation from all segments of society.

As Malaysia continues its transition towards a sustainable energy future, NEEAP 2.0 represents a significant step in aligning the nation’s energy policies with global sustainability goals, ensuring that the benefits of energy efficiency are shared widely among its population.