KUALA LUMPUR, October 22 – With buildings accounting for 37% of global CO2 emissions, the race to decarbonise the sector is crucial to achieving climate targets. Eugene Quah, Country President of Schneider Electric Malaysia, highlighted the pressing need for retrofitting existing buildings to significantly reduce their operational carbon emissions. As 72% of emissions stem from building energy use, improving efficiency through retrofits could lower life-cycle carbon emissions by as much as 83%.
However, the financial costs are a key concern. Retrofitting large office buildings (8,000 sq. meters or more) for compliance could cost between RM 2.8 million and RM 7.5 million, with ROI expected within 1 to 3 years and up to a 45% reduction in CO2 emissions. Mandatory energy audits under the Energy Efficiency and Conservation Act (EECA) further add to building owners’ financial burden, with costs reaching RM 120,000 per year for industrial users.
To accelerate Malaysia’s journey to carbon neutrality by 2050, Quah urged the government to lower financial barriers, suggesting incentives for green certification and an extension of the Energy Audit Conditional Grant (EACG 2.0). With the right support, the decarbonisation of the building sector could provide significant environmental and economic benefits, positioning Malaysia as a leader in sustainability.
