Mubadala Devt, 1MDB plan Malaysia's first carbon-neutral city

January 18, 2010 | The Edge Financial Daily | By Joseph Chin

KUALA LUMPUR: Abu Dhabi's Mubadala Development Company and 1Malaysia Development Bhd (1MDB) are teaming up to explore clean technology projects and investments, including the possibility of building Malaysia's first carbon-neutral city.

The cooperation agreement between Mubadala Devt's unit Masdar, focused on renewable energy and sustainability and 1MDB had on Monday, Jan 18 signed a cooperation agreement to explore clean technology projects and investments including the carbon-neutral city.

Masdar and 1MDB also intend to cooperate and invest in carbon reduction projects, under the Kyoto Protocol's clean development mechanism (CDM) and clean technology venture capital. If fully implemented, the agreement would lead to the development of new catalytic projects, with an estimated value of US$100 million.

The agreement with Masdar was signed during Prime Minister Datuk Seri Najib Razak's visit to Abu Dhabi. The agreement will enhance Malaysia's efforts to embrace world-class sustainable practices and clean technology. It was among several strategic joint agreements signed between Malaysia and the UAE.

Masdar CEO Dr Sultan Ahmed Al Jaber, said: "Masdar is committed to building strategic partnerships and creating worldwide networks in the push for new low carbon energy technologies and clean, sustainable ways of living. We value this partnership with Malaysia and applaud their move to actively pursue and invest in new green technologies."

1MDB CEO Shahrol Halmi said: "Clean technology is an increasingly important sector for the future economic development of Malaysia. The partnership with Masdar will help expose Malaysia and 1MDB to world-class capabilities in sustainable development."

Shahrol did not rule out the possibility of 1MDB building Malaysia's first carbon-neutral city. "It is our intent to explore and evaluate business opportunities relating to the development of an environmentally friendly carbon-neutral city in Malaysia," he concluded.

To recap, Masdar, which was set up by the Government of Abu Dhabi in 2006, is a renewable energy initiative that integrates the full renewable and clean technology life-cycle - from research to commercial deployment - to create commercially scalable renewable and clean energy solutions.

As for 1MDB, it is mandated to drive strategic initiatives for long-term sustainable economic development and promote inflow of FDI into the country.