Companies get tax incentives in 100% renewable energy initiative

16 May 2019 / 18:49 H.

KUALA LUMPUR: The Energy, Science, Technology, Environment and Climate Change Ministry will roll out a framework that will allow companies to receive tax incentives if they commit to be part of the RE100, a global initiative that has corporations commit to use 100% renewable energy.

Its minister Yeo Bee Yin said the framework will be ready within three months’ to prepare companies as they enter into the third quarter of the year.

“By Jan 1, 2020, RE100 companies will be able to buy electrons, so that all their energy can be renewable energy,“ she said after attending the launch of the Malaysian chapter of the Climate Governance Initiative at the Securities Commission yesterday.

She also said this will give Malaysia a competitive edge in attracting RE100 companies to come to Malaysia and set up an office hub here, and that incentives will be given for first movers, be it local or foreign corporations.

“We see this as not only incentivising renewable energy in Malaysia, but also making this possible so that we have something that they can look into when foreign companies think about where to put their headquarters in Asean,“ she said.

Yeo said the ministry is committed and aggressively increasing renewable energy in electric generation and also increasing efforts in energy efficiency.

“We have tax incentives and green investment tax allowance, and we have increased their scope from nine activities and assets to 40 activities and assets. The public can go to the Malaysian Investment Development Authority (Mida) to ensure that corporations can invest in renewable energy and green technology,“ she said.

She also said Malaysia is committed to reducing carbon emission by 45% by 2030, after signing the Paris Agreement in 2015.

“From this, 35% is our commitment and 10% is conditional on international support and financing available. We are on track to meeting our Paris Agreement but we will want to do more,“ she said.

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