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Budget 2025: Green Bonds, Tax Rebates Will Help Telecommunication Companies To Move Into Renewable Energy

Edotco Group Sdn Bhd chief executive officer (CEO) Mohamed Adlan Ahmad Tajudin (Credit: United Nations Global Compact)

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Sept 30 (Bernama) -- Introducing competitive green bonds, tax breaks or rebates in the upcoming Budget 2025 may encourage companies, including telecommunication companies, to transition into renewable energy (RE) in their operations.

Edotco Group Sdn Bhd chief executive officer Mohamed Adlan Ahmad Tajudin said such incentives could facilitate investments toward sustainable energy solutions.

“This would help offset the high upfront costs that industry players have to face and encourage them to adopt clean energy sources like solar and wind.

“Additionally, a cash-back programme for environmental, social and governance (ESG) initiatives, similar to those for electric vehicle purchases, can be considered. This may attract telecommunication companies to integrate sustainability practices, which align with the nation's green goals,” he told Bernama recently when asked about the industry’s Budget 2025 wishlist.

An alternative is to improve access to green bonds and competitive financing options for RE projects, coupled with stringent ESG reporting standards.

“This would provide the necessary financial support while driving companies to enhance transparency and sustainability efforts, motivating boards to take more decisive action on ESG initiatives,” he added.

Mohamed Adlan pointed out that telecommunication companies in Malaysia are currently facing rising energy consumption costs due to the growing demand for network accessibility.

While RE such as solar is an option, he said its implementation remains challenging due to the geographically dispersed nature of telecommunication networks, making it difficult to achieve economies of scale with energy-efficient solutions.

Apart from that, Mohamed Adlan said the limited availability of sustainable green energy sources also posed an obstacle to the RE transition.

In Malaysia, businesses can subscribe to renewable energy certificates (RECs), benefiting from feed-in tariff (FIT) schemes or installation of solar panels under the net energy metering mechanism.

However, he said the supply of RE is still limited based on a first-come-first-serve basis.

He also welcomes frameworks that encourage telecommunication companies to participate in large-scale solar (LSS) projects and energy efficiency programmes, which will enable the sector to reduce its carbon footprint while maintaining operational efficiency.

This includes allocating LSS projects specifically for the telecommunications industry, he said.

“Currently, solar power producers (SPPs) tend to enter supply agreements (SSAs) with high-energy-consuming industries, like factories, rather than individual telecommunication companies, which have relatively lower emissions.

“By enabling telecommunication companies to engage in SSAs collectively, it could make the agreements more attractive to SPPs, fostering competitive pricing that benefits both parties,” he added.

Furthermore, this collective approach would also accelerate the industry's renewable energy adoption, aligning with Malaysia's sustainability goals while ensuring cost-effective energy solutions for telecommunication, Mohamed Adlan said.

Mohamed Adlan said Edotco, which is a telecommunication infrastructure company has made significant strides in its RE transformation since it was established in 2012.

To date, the company operates 2,604 telecommunication towers around Asia with 159 towers in Malaysia, Pakistan (184), Myanmar (381) and Bangladesh (1,880), which are now running on RE.

“These highlight our efforts to expand RE use across our operations and contribute to the region’s green transition,” he said.

Prime Minister Datuk Seri Anwar Ibrahim is expected to table the 2025 Budget on Oct 18 in Parliament.

-- BERNAMA

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