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Malaysia faces significant fiscal and energy security risks due to its heavy reliance on oil and gas exports, particularly LNG shipments to Japan, South Korea, and China. The document highlights a growing crude oil trade deficit and the threat of stranded assets as global demand shifts. To mitigate these risks, the report recommends diversifying into green manufacturing, hydrogen, and carbon capture services, while establishing a Sustainable Energy Transition Fund and a Just Transition Commission to support displaced workers in resource-dependent regions like Sabah and Sarawak.

The report argues that the ASEAN Power Grid (APG) can unlock significant renewable energy potential and enhance energy security by connecting resource-rich countries with high-demand markets. It highlights specific planned solar and wind projects, the role of the ASEAN Interconnection Master Plan Study (AIMS), and the potential for 30 GW of additional renewable capacity to generate 109 TWh of electricity and create 182,000 jobs.

The report argues that ASEAN's transmission grid expansion must roughly double to align with IEA pathways, as current national plans for Indonesia, Viet Nam, the Philippines, and Thailand cover only about 45% of the required expansion. It highlights that 30 GW of solar and wind potential is located along planned interconnection routes in countries like Indonesia, Malaysia, Cambodia, and Brunei. To support this transition, the report proposes a six-pillar framework for future-ready grid planning—including smart modernisation, strategic expansion, and market reforms—and suggests learning from the integrated power systems of Europe and Southern Africa to move from bilateral to multilateral power trade.

The document highlights the critical role of Indigenous Peoples in Southeast Asia as stewards of biodiversity and climate stability, noting that deforestation rates on their lands are half those on other lands. It criticizes the current draft of the ASEAN declaration on environmental rights for omitting Indigenous Peoples, which the authors argue leads to human rights violations, land dispossession, and the marginalization of traditional ecological knowledge. The brief provides specific recommendations for the declaration, including the recognition of Free, Prior and Informed Consent (FPIC) and the protection of Indigenous Environmental Human Rights Defenders.

Malaysia possesses significant untapped solar resources that could reduce its reliance on volatile fossil fuel prices and improve energy security. While the National Energy Transition Roadmap (NETR) targets 70% renewable capacity by 2050, the report suggests that more ambitious targets, such as those proposed by IRENA, could further benefit the country. In Peninsular Malaysia, solar generation costs dropped 64% between 2016 and 2021, becoming 53% cheaper than fossil fuel options by 2023. To manage the 'twin peaks' of daily demand (4 pm and 8 pm), the report advocates for a combination of solar for daytime peaks and hydropower and battery energy storage systems (BESS) for evening peaks. Key barriers include the need for grid interconnections between Peninsular Malaysia, Sabah, and Sarawak, as well as the requirement for clearer policies on wheeling charges and BESS bankability.

H2 Energy Sdn Bhd installed a 2.88 kWp solar-powered hydrogen system at the Long Loyang Clinic in Sarawak on 8 August 2022. The system provides 24/7 electricity for essential medical equipment and refrigeration, replacing a costly and irregular diesel-based supply. The project is estimated to benefit 2,172 people indirectly and avoid 6 tonnes of CO2 annually. H2 Energy is exploring further scalable applications for rural clinics, schools, and settlements in Malaysia, Australia, and Cambodia.

The proposal seeks USD 300,000 to help Malaysia align its economic recovery from the COVID-19 pandemic with climate change priorities. The project, implemented by the Malaysia Green Technology and Climate Change Centre (MGTC) under the Ministry of Environment and Water, aims to analyze the impact of pandemic stimulus packages on climate strategies, develop a national resilient recovery strategy and investment plan, and create at least one new project concept note for GCF submission. The initiative focuses on sectors including energy, construction, transport, waste, water, and manufacturing to facilitate a transition to a climate-neutral and inclusive economy.

The report by Friends of the Earth International critiques 'false solutions' to biodiversity loss and climate change, which it defines as market-based mechanisms that commodify nature. It argues that these solutions—such as carbon credits and biodiversity offsets—allow corporations to continue polluting through 'compensation' while stripping local and indigenous communities of their land rights. The document details a four-phase process of commodification where nature is redefined as 'natural capital' and 'ecosystem services.' It concludes that true solutions must address the root causes of ecological destruction by challenging capitalist accumulation and prioritizing social, gender, and environmental justice.

The report argues that 'false solutions' to environmental crises are characterized by the financialisation of nature, where ecosystems are treated as 'natural capital' and traded as commodities. These mechanisms, such as carbon credits and biodiversity offsets, allow corporations to continue polluting by paying for compensation elsewhere, often leading to the violation of Indigenous and local community rights. The document contrasts these with 'real solutions' based on grassroots power, social and gender justice, and the dismantling of capitalist accumulation.

HT Energy (S) Sdn Bhd (HTES) is implementing a pilot 2.88 kWp solar-powered hydrogen system at the Long Loyang Clinic in Sarawak, Malaysia, to replace irregular and costly diesel power. The system uses solar PV and an electrolyser to store energy as hydrogen gas (30 Nm3 capacity), providing 25-30 kW of electricity daily for essential medical services. The project aims to avoid 13 to 33 tonnes of CO2 annually and serves as a model for 57 other rural clinics in the region.

The document evaluates forest governance in nine tropical countries, noting improvements in legal frameworks and multi-stakeholder engagement driven by Voluntary Partnership Agreements (VPAs) and REDD+. However, it highlights critical failures in cross-sectoral policy coherence, the rule of law, and the implementation of free, prior, and informed consent (FPIC). While transparency has increased through digital tools, accountability remains limited by corruption and insufficient resources for law enforcement.

The report links the expansion of the palm oil industry in Southeast Asia to the use of fire for land preparation, which frequently results in uncontrollable landscape fires. These fires, particularly those on drained peatlands, release hazardous particulate matter that causes an estimated 110,000 deaths annually in the region. The document highlights the exacerbating role of climate-driven droughts and the significant economic losses in tourism and industry, while calling for a global shift toward deforestation-free and peat-free palm oil production.

The report argues that 'sustainable' and 'legal' timber policies in producer and consumer countries are often rudimentary technical responses that fail to address systemic governance flaws, corruption, and human rights violations. In Malaysia, the report highlights a lack of transparency in logging license awards and systemic violations of indigenous customary land rights. In Japan, South Korea, and Australia, the report identifies weaknesses in procurement frameworks, such as a reliance on exporter-provided paperwork and a failure to reduce overall tropical timber consumption. It concludes that without fundamental governance reforms and a reduction in consumption, certification schemes and procurement guidelines remain insufficient to prevent deforestation and social injustice.

The report details how Japanese trading companies import timber from Sarawak, Malaysia, where illegal logging and corruption are widespread. It highlights specific cases involving companies like Samling and Rimbunan-Sons, noting that only 5% of Sarawak's primary forest remains. The document criticizes the Japanese government's limited measures compared to the US, EU, and Australia, and urges Japan to mandate supply chain due diligence and ban illegal timber imports to protect global biodiversity and climate stability.

The report examines the tension between Malaysia's state-led economic development—driven by logging and oil palm expansion—and the customary land rights of Indigenous peoples. It highlights that while Sabah has begun exploring the ICCA concept through the Sabah Biodiversity Strategy 2012-2022, legal recognition of communal tenure remains inconsistent and often subordinated to commercial interests. The document details various community-led conservation efforts, such as the 'tagal' fisheries system and the Bundu Tuhan Native Reserve, while noting that landmark court cases in Peninsular Malaysia and Sarawak have provided some legal precedents for native title and proprietary rights.

This executive summary by Friends of the Earth challenges the Malaysian Palm Oil Council's (MPOC) claims that Malaysian palm oil is sustainable. It argues that expansion, particularly in Sarawak, is driving tropical deforestation, the destruction of peat lands, and human rights violations against indigenous peoples like the Penan. The report highlights the role of European and American bio-energy targets in driving this demand and calls for the EU to abandon its 10% biofuel target and for the Malaysian government to recognize Native Customary Rights and enforce a zero-burning policy.

The report argues that the Malaysian palm oil industry's claims of sustainability are misleading, citing evidence of widespread deforestation, illegal open burning on peatlands, and the systemic violation of indigenous land rights in Sarawak. It highlights the 'carbon debt' created by converting peat forests to plantations and criticizes the lack of public participation in Environmental Impact Assessments (EIAs). The document calls for the EU to abandon biofuel targets that drive this demand and for the Malaysian government to recognize Native Customary Rights (NCR).

The report finds that Malaysia's ambitions to become a global biodiesel producer have been undermined by volatile feedstock prices and the high cost of production relative to petroleum diesel. While the government provided limited support through soft loans and tax incentives, a proposed B5 blending mandate would likely increase the national subsidy burden. The industry's profitability is precarious, relying heavily on exports to the EU and US, where it may benefit from subsidy loopholes. Environmentally, the report argues that the presumed carbon benefits of biodiesel are offset by greenhouse gas emissions from deforestation and peatland conversion, while socially, global biofuel demand has contributed to rising food prices.

The document investigates how decentralization in Indonesia has interacted with existing social power structures and histories of violence to create new conflicts over resource control. It argues that decentralization is not a neutral administrative shift but a process that can normalize violence, empower new ethnic elites, and facilitate illegal resource extraction when not accompanied by effective law enforcement and reinvestment guidelines. The author highlights the role of 'preman' (thugs) and the continued involvement of the military in illegal logging, suggesting that the shift from a centralized 'preman state' to a decentralized system has often merely replaced one set of elites with another.

The document examines the economic risks of deforestation in Aceh, specifically linking palm oil expansion on peatlands to increased flooding and potential 'stranded assets'. It argues that increasing agricultural productivity for palm oil and rice can meet government production targets while reducing the need for land conversion and protecting the Leuser Ecosystem.