Parliament in Malaysia has passed a law requiring the largest energy consumers in the country to introduce power-saving measures in a bid to reduce energy consumption and carbon emissions.

Malaysia has pledged to cut its greenhouse gas emissions by 45% throughout the economy by 2030 and reach net-zero emissions by 2050.

Implementing the Energy Efficiency and Conservation Act is forecast to save 2,017 million gigajoules (GJ) of energy use, equivalent to 97.1 billion Ringgit ($20.54 billion) by 2050, according to Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad.

Over the same period, the country is predicted to slash emissions by 197,877 kilotonnes of carbon dioxide equivalent and generate jobs in energy management and auditing, the minister added.

The law would only apply to large power users consuming over 21,600 GJ per year, Nik Nazmi stated, adding that it hopes to bring Malaysia's energy efficiency regulations in line with international standards, Reuters reports.

"Our focus is on users who consume energy above a very high threshold," the minister commented. 

The measures will be applicable to around 1,500 industrial consumers responsible for 70% of energy consumption in the sector, along with 500 commercial consumers, Nik Nazmi said, which is under 1% of the total users in both sectors.

The law will now be sent to the Senate for approval before being gazetted.

Large industrial and commercial consumers will need to appoint a registered energy manager to undertake an energy audit and outline a power management system under the new law, the Reuters report adds.

Consumers will also need to file periodic energy consumption reports to authorities.

In addition, buildings larger than 8,000 square metres will need to comply with energy efficiency requirements.

The measures will come into effect a year after the law is gazetted, according to the minister.