malaysiangKUALA LUMPUR, Steel manufacturer Mycron Steel Bhd, which just signed a memorandum of understanding (MoU) with Japan’s JFE Steel Corporation to drive green solutions in Malaysia, has called for public-private partnerships to be prioritised in Budget 2025 to help Malaysia achieve carbon neutrality by 2050.
Its group chief executive officer Roshan Mahendran Abdullah said it is pertinent that the government and industry cooperate to drive decarbonisation initiatives and support sustainable growth in Malaysia’s steel sector.
Malaysia has pledged to become a net-zero greenhouse gas emissions nation by 2050 the earliest.
Decarbonisation, which reduces the amount of carbon – mainly carbon dioxide – released into the atmosphere, is essential to achieving a low-emission global economy and attaining climate neutrality through energy transition.
Roshan highlighted how steel producers benefited from the European Innovation Fund, which supports innovation in low-carbon technologies.
Conversely, polluters in the European Union (EU) have to pay for their greenhouse gas emissions via the Emissions Trading System (ETS), a market-oriented approach to controlling pollution by providing economic incentives for reducing emissions of pollutants.
The money raised via the EU ETS is reinvested into the Innovation Fund, one of the world’s largest funding programmes for innovative low-carbon technologies.
“An example from Europe is the implementation of the Carbon Border Adjustment Mechanism (CBAM) by 2026.
“Over the past few years, the EU has provided billions of euros in subsidies to steel companies to support decarbonisation efforts,” he told Bernama after a MoU signing ceremony between Mycron Steel and JFE Steel Corporation.
The strategic partnership aligns with Malaysia’s national environmental agenda and the global push to reduce carbon emissions in heavy industries. Mycron Steel will integrate JGreeXTM green steel into its production process under the MoU.
Roshan Mahendran added that the company hopes a similar approach can be adopted domestically, with Malaysian policymakers and the steel industry, and improved access to affordable renewable energy to support its transition towards sustainability.
The 2025 Budget will be tabled in Parliament on Oct 18, 2024.
Source: BERNAMA News Agency
