The Malaysia's Ministry of Transport launched aviation decarbonization blueprint to accelerate commitment towards net zero. (Photo: MOT Malaysia)
The Malaysian government announced its first aviation industry carbon reduction plan on Sept. 5, which proposes four major carbon reduction measures for airlines. In addition to encouraging the purchase of carbon credits to offset emissions, the plan places a crucial focus on Sustainable Aviation Fuel (SAF).
Malaysia's national oil company, Petronas, has been tasked with the responsibility of producing SAF, with production expected to begin as early as 2028. The aim is to accelerate the adoption of SAF by airlines.
Malaysia's push for aviation decarbonization
The carbon reduction plan, officially named the "Malaysia Aviation Decarbonization Blueprint" (MADB), aims to help the aviation industry achieve net zero emissions by 2050. The plan is divided into three action groups: airlines, air traffic management, and airports. Since emissions from flights account for 90% of the total aviation industry emissions, strategies for airlines are particularly emphasized.
According to the plan, airlines have four main reduction measures: adopting newer aviation technologies, enhancing operational efficiency, using sustainable aviation fuel, and purchasing carbon credits. The estimated contribution to emissions reduction is highest from SAF (46%), followed by carbon credits (31%), aviation technology (18%), and operational efficiency (5%).
Malaysia's Transport Minister, Anthony Loke Siew Fook, noted that the biggest challenge with SAF is its price, which is currently three times that of traditional aviation fuel, mainly due to limited production. "We need to address the supply side first before discussing how airlines can adopt SAF."
SAF plays the largest role in Malaysia's plan for aviation carbon reduction. (Chart: MADB)
Sustainable aviation fuel (SAF) is the key component in Malaysia's strategy for reducing aviation carbon emissions. (Chart: MADB)
Petronas to produce SAF by 2028
Loke revealed that Petronas has committed to producing SAF by 2028 at the earliest and expects the price to decrease by then, which would ease the burden on airlines. Currently, local airlines do not use SAF, and the government does not plan to mandate its use at this stage.
In addition to the time required for SAF development, the carbon offset rules that the aviation industry follows are still in the trial phase. Regarding improving operational efficiency, air traffic management and airports play a crucial role. Loke stated that a one-minute reduction in flight time for each flight within Malaysian airspace could reduce carbon emissions by 75,600 tons annually.
To implement the decarbonization blueprint, the Malaysian Transport Ministry will convene interdepartmental meetings to detail the plan and establish a steering committee to oversee progress.
Loke warned that compared to other transportation sectors, the aviation industry's carbon emissions have been growing faster in recent years. If no changes are made, by 2050, the country's total aviation emissions could reach 25 million tons, with domestic flights accounting for 30% of the emissions.
Source: S&P Global, The Edge Malaysia, TechNode Global
