Renewables must lead Malaysia’s coal phase-out to avoid gas lock-in: WEF | News | Eco-Business | Asia Pacific

Nature & Climate Perspective

**Replacing retiring coal capacity directly with solar and storage prevents fossil gas lock-in and curtails long-term atmospheric and terrestrial degradation. **

• Mitigates regional acid deposition and air particulate pollution, directly supporting local terrestrial biodiversity and watershed health.
• Averts upstream and midstream fugitive methane emissions associated with natural gas infrastructure, protecting regional LULUCF carbon sinks.
• Facilitates the ecological remediation of industrial brownfield coal sites without requiring conversion of high-conservation-value natural habitats.

Market & Policy Outlook

**Transitioning coal assets directly to renewable energy hubs enhances I-REC market liquidity and unlocks Article 6. 2 ITMO financing while adhering to ICVCM Core Carbon Principles.**

• Demands stringent ICVCM Core Carbon Principles (CCPs) alignment on robust baseline setting and additionality to prevent crediting fossil gas as a low-carbon transition pathway.
• Scales the issuance of high-integrity I-RECs and bundled Energy Attribute Certificates (EACs), lowering compliance costs for corporations pursuing SBTi-validated Scope 2 targets.
• Creates an operational blueprint for cross-border carbon finance, utilizing Article 6.2 and Article 6.4 mechanisms to monetize early retirement via Internationally Transferred Mitigation Outcomes (ITMOs).