Sustainability by defossilization: from global insights to a closer look at Malaysia

Abstract

The overarching goal of global energy decarbonization, envisioned to combat climate change, should be coupled with material defossilization, which is just as crucial to target waste accumulation and fossil fuel depletion. However, current policies and regulatory frameworks often neglect this dimension, creating a loophole that allows stakeholders to exploit decarbonization narratives—diverting fossil fuels from energy to chemicals, alongside expanding both renewable and non-renewable power sources, resulting in a misleading green image and an unsustainable level of consumption. This situation is elicited by socioeconomic trade-offs, such as the risks of profit decline, job displacement, and diminished market competitiveness, which compel stakeholders to act in favour of immediate self-interest. To counter these pressures, there is an urgent need for clearly defined, fiscally driven policies that leverage the comparative advantages, natural resources, and technical expertise of different nations to realign incentives toward long-term sustainability. From a pragmatic standpoint, Malaysia, with its wealth of fossil and biomass resources, is well positioned to lead a transition from fossil-based to bio-based materials. Key enablers of this transition include setting clear priorities for high-value bio-based products, building green infrastructure, enhancing vocational education, providing financial incentives, and establishing supply–demand pricing mechanisms to support market stability and growth.