Renewable Energy Certificate (REC) Market Demand Mapping in Malaysia

Manufacturing leads in REC adoption: Driven by a commitment to sustainability and cost reduction, Malaysia’s manufacturing sector shows strong REC uptake, particularly among companies like 3M, PepsiCo, and those participating in RE100 and SBTi.

Smelting sector lags in REC engagement: Despite significant energy consumption, the smelting industry demonstrates a concerning lack of REC adoption, highlighting a need for targeted policies and incentives to encourage greater participation in renewable energy initiatives.

Non-manufacturing sector shows promising growth: Driven by voluntary sustainability commitments, the non manufacturing sector, particularly financial services, is emerging as a key driver of REC demand, signaling the potential for further expansion in this diverse sector.

Data processing sector presents a significant opportunity: With Malaysia’s growing data centre infrastructure and digital economy, promoting REC adoption among data processing companies, including both local and international players, is crucial for sustainable growth in this energy-intensive sector.

Regional variations require a harmonised approach: Malaysia’s regionalised REC market necessitates a unified national framework with consistent standards to ensure market cohesion, enhance accessibility, and drive broader REC demand across all sectors and regions.