Envisioning a Low-Carbon Future: Sarawak’s Journey Towards Sustainable Development

YAB Datuk Patinggi Tan Sri Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg is the Premier of Sarawak. This Long Read is based on his public lecture of the same title delivered at the ISEAS-Yusof Ishak Institute on 10 February 2025. The text has been lightly edited for clarity.

AN IMPERATIVE OF OUR TIME

Sarawak’s journey towards a sustainable and resilient future is imperative and timely.

Scientists recently reported that January 2025 was the hottest on record, with global temperatures approaching 1.75°C above pre-industrial levels — raising us above the 1.5°C Paris Agreement threshold earlier than expected. At this rate, extreme weather, rising sea levels, and ecosystem disruptions are becoming more evident, with Southeast Asia among the most vulnerable. This highlights the urgency of decisive action.

Therefore, it is important to take a step back and reflect on the bigger picture, the rapidly changing world around us and the challenges we face. Climate change is no longer a distant threat; it is unfolding before our eyes, disrupting economies, straining ecosystems, and reshaping the way we live and work.

Sarawak is fully aware of these challenges, which is why I value any opportunity to share our transformative journey — one that has rapidly evolved from ambition to tangible action, driving bold initiatives for a low-carbon, climate-resilient, and inclusive future.

To understand our approach, we must first recognise what makes Sarawak unique. Home to 27 ethnic groups, including the Iban, Chinese, Malay, Bidayuh, and Orang Ulu, our diversity fosters harmony and embodies unity. Known for its natural beauty, Sarawak balances cultural heritage with sustainable development, blending tradition and innovation to lead in climate action and sustainability. With this foundation, Sarawak is driving a transformation that integrates economic progress with environmental responsibility.

Sarawak’s sustainability journey is driven by clear vision, strategic planning, and a commitment to preserving our natural heritage. As a resource-rich, diverse state, we continue to balance economic growth with environmental responsibility.

PCDS 2030: POLICY REFORMS AND ECONOMIC TRANSFORMATION

Launched in 2021 in response to global challenges and the impact of Covid-19, the Post Covid-19 Development Strategy (PCDS 2030) serves as a roadmap for Sarawak to achieve prosperity, inclusivity, and environmental sustainability by 2030.

Built on the policy principles of economic prosperity, social inclusivity, and environmental sustainability, PCDS 2030 drives economic growth, fosters a data-driven society, and ensures long-term sustainability. Through digital transformation, renewable energy, and low-carbon solutions, Sarawak is shaping a future of progress and opportunity.

While policy reforms set the direction, their true impact lies in implementation. Sarawak is now putting these policies into action, accelerating industrial decarbonisation and advancing green innovation for a sustainable future.

At the mid-point of PCDS 2030, we are already seeing results, reflecting Sarawak’s ability to turn strategy into action. One of our most significant milestones is surpassing the World Bank’s high-income threshold ahead of schedule, reinforcing Sarawak’s position as an economic hub for trade and investment. At the same time, Sarawak has introduced bold policy reforms to ensure that sustainability remains central to development.

Sarawak has reinforced environmental governance through key policies: the Land (Carbon Storage) Rules 2022 for CCUS, the Greenhouse Gas Emission Ordinance 2023 mandating GHG reporting and supporting carbon markets, and the Natural Resources and Environment Bill 2024 to enhance resource governance.

While policy reforms set the direction, their true impact lies in implementation. Sarawak is now putting these policies into action, accelerating industrial decarbonisation and advancing green innovation for a sustainable future.

RENEWABLE ENERGY AND DECARBONISATION

With PCDS 2030 as our foundation, Sarawak is scaling up clean energy and decarbonisation efforts to enhance energy security, economic resilience, and regional leadership.

Hydropower has been the backbone of Sarawak’s energy mix since 1985, starting with the Batang Ai Dam, followed by the Bakun Dam and Murum Dam. The upcoming Baleh Dam will further expand power capacity, ensuring stable, low-emission energy for decades.

As energy demand rises, we are strengthening grid reliability through hybrid solutions that optimise power generation. Last year, Sarawak took a significant step towards hybrid renewables with the installation of a 50MW solar-hydro system at Batang Ai Dam — the first of its kind in our energy mix. Expansion is underway, with additional capacity being developed to strengthen multi-source clean energy solutions. Other hybrid projects, including solar-wind systems, are progressing, further diversifying our renewable portfolio.

We have taken another significant step forward with the launch of a 500MW hydrogen-ready Combined Cycle Gas Turbine (CCGT), scheduled for completion in 2027. This facility will bolster power supply in northern Sarawak and potentially serve Sabah and Brunei, operating on a methane-hydrogen mix to enhance efficiency and reduce emissions.

Our goal is to boost electricity capacity to 10GW by 2030 and 15GW by 2035, strengthening Sarawak as a green energy powerhouse in ASEAN. This expansion supports industries, advances green technologies, and enables regional electricity exports.

Our aspirations extend to the region. Sarawak aims to be the “Battery” of ASEAN by supplying clean energy and enhancing cross-border interconnectivity. Through the ASEAN Power Grid initiative, we are strengthening regional energy security while exploring storage solutions to optimise supply and distribution.

Towards becoming a green energy powerhouse in ASEAN

With Asia’s growing demand for clean fuel, Sarawak is scaling up commercial green hydrogen production, which uses water as the source material while leveraging Sarawak’s abundant hydroelectric generation to power the energy-intensive process of splitting water into hydrogen and oxygen. Partnerships with Japan, South Korea, and China are expanding Sarawak’s hydrogen supply chain, positioning us as a leader in the Asia-Pacific green hydrogen economy.

However, green hydrogen alone cannot eliminate emissions across all industries. Sarawak is integrating Carbon Capture, Utilisation, and Storage (CCUS) to decarbonise hard-to-abate sectors while unlocking new low-carbon economic opportunities.

EXPANDING LOW-CARBON FUELS AND GREEN INDUSTRY

Malaysia and Japan are strengthening bilateral cooperation in the development and trade of ammonia, recognising its role as a low-carbon energy carrier and a key solution for decarbonisation. This collaboration aligns with both countries’ clean energy transition strategies, with Sarawak positioned as a key supplier of low-carbon ammonia to Japan.

Building on this, we are collaborating with Japan to convert methane into ammonia using syngas technology, maximising resource efficiency while reducing emissions. These innovations are crucial in cutting carbon emissions and reinforcing Sarawak’s role in industrial decarbonisation.

Sarawak is also scaling up low-carbon fuel production to further support industrial and energy transition efforts. We are expanding our low-carbon fuel initiatives. In July 2024, the Sarawak Methanol Complex was launched to drive industrial growth and support the transition to greener fuel alternatives. January 2025 marked a key milestone in our green energy transition with the sail-away of Sarawak Petchem’s first methanol export to China and the groundbreaking of the Green Methanol Plant. This new facility will enhance our capacity for sustainable fuel production, driving industrial growth and supporting the broader energy transition.

Once operational, the plant will enhance low-carbon methanol production, supporting the chemical industry, power generation, transportation, and green bunkering as a sustainable fuel for the shipping industry. These initiatives are key to Sarawak’s broader decarbonisation strategy, integrating renewable energy and carbon capture technologies to lower emissions across industries.

As part of our low-carbon transition, we are optimising natural gas resources for a structured shift to cleaner energy. Launched last November, the Sarawak Gas Roadmap outlines strategies to maximise natural gas utilisation while integrating renewables and CCUS to strengthen energy security and sustainability.

At the same time, biomass plays a key role in Sarawak’s energy transition, where agricultural waste is converted into biofuel, biogas, and syngas to support industrial decarbonisation. Expanding on this commitment to clean energy, research into microalgae-based Sustainable Aviation Fuel (SAF) is progressing, offering new opportunities to reduce emissions in the aviation sector.

These are not standalone efforts; they are deeply aligned with PCDS 2030, ensuring that economic growth, energy security, and sustainability progress together.

BEYOND ENERGY: SMART CITIES AND ENVIRONMENTAL CONSERVATION

Sarawak’s journey for sustainable growth extends to urban development and digital transformation, creating efficient, connected, and green cities.

The Kuching Urban Transportation System (KUTS), Southeast Asia’s first hydrogen-powered Autonomous Rapid Transit (ART), uses artificial intelligence (AI) to optimise routes, monitor operations, and enhance maintenance for cleaner, more efficient mobility.

Our Sarawak Digital Economy Blueprint 2030 promotes AI, IoT (Internet of Things), and Big Data to improve energy use, waste management, and urban planning, strengthening economic growth and connectivity. As we modernise our cities, we must also safeguard our natural environment to ensure long-term sustainability.

Our forests play a vital role in carbon sequestration, with 62 per cent of Sarawak’s land under forest cover. Expanding this capacity remains a priority, alongside strict conservation policies and the elimination of unsustainable logging.

Under the Greening Malaysia Campaign, Sarawak set a 35-million-tree target and achieved it ahead of schedule in June 2024, reinforcing our commitment to reforestation and biodiversity protection.

Complementing large-scale reforestation, we are enhancing climate resilience through nature-based solutions like mangrove restoration, peatland conservation, and ecosystem rehabilitation. These efforts strengthen carbon sequestration while ensuring urban growth aligns with environmental protection.

By integrating smart urban planning with conservation, Sarawak ensures development supports, rather than harms, its natural heritage.

GLOBAL COLLABORATIONS AND STRATEGIC PARTNERSHIPS

Global partnerships drive Sarawak’s sustainability, accelerating clean energy innovation, technology transfer, and investment. Collaborating with governments and industries, we are expanding hydrogen, renewable energy, and carbon markets while strengthening regional energy security.

Beyond collaborations with Japan, South Korea, China, and the United Arab Emirates, we continue engaging global stakeholders to grow low-carbon industries, develop sustainable infrastructure, and drive innovation in clean energy solutions.

Once fully implemented, this framework will strengthen investor confidence, promote responsible business practices, and solidify Sarawak’s role as a leader in sustainability governance, contributing to ASEAN’s green economy and long-term resilience.

To further our climate action, we are establishing the Sarawak Climate Change Centre as a regional hub for research, policy development, and collaboration. It will focus on adaptation, mitigation, carbon management, disaster risk assessment, and renewable energy while serving as a platform for climate modelling, capacity building, and global knowledge exchange.

Governance and accountability are essential to sustaining these efforts. Sarawak has announced plans to introduce Public Sustainability Reporting to enhance corporate responsibility and align with global ESG (environmental, social, and governance) standards.

Once fully implemented, this framework will strengthen investor confidence, promote responsible business practices, and solidify Sarawak’s role as a leader in sustainability governance, contributing to ASEAN’s green economy and long-term resilience.

LOOKING AHEAD: OPPORTUNITIES FOR INVESTMENT AND COLLABORATION

Sarawak demonstrates that economic growth and environmental responsibility can progress together. Our journey reflects how strong policies, community engagement, and global collaboration drive sustainability.

Sarawak welcomes partnerships and investments in clean energy, digital technology, and sustainable industries, reinforcing our role as a green innovation hub. As we move towards 2030, we are fostering sustainability through innovation, investment, and strategic incentives in renewable energy, hydrogen, biotechnology, carbon capture, and eco-tourism.

Launched last October, the Sarawak Sustainability Blueprint accelerates investment and technological innovation, strengthening leadership in green hydrogen, carbon capture, and smart cities. It also drives technology collaboration in AI-driven resource management, blockchain-enabled carbon markets, and smart urban solutions to enhance efficiency and sustainability. A skilled workforce powers this vision. Through scholarships, training, and university partnerships, we are preparing talent for clean energy and digital transformation.

I hope that Sarawak’s journey and our efforts to strengthen regional cooperation in green industry, energy security, and climate solutions encourage further action towards shaping sustainable, competitive economies. We look forward to meaningful partnerships that advance a greener future for Sarawak, Singapore, and the Southeast Asian region.

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