When discussing climate change and carbon management, many businesses focus only on carbon dioxide (CO₂).
However, several greenhouse gases (GHGs) are highly relevant to industrial activities in Malaysia—especially for manufacturing, food processing, logistics, and energy-intensive operations.

Understanding which gases matter most helps businesses:

• Identify emission risks

• Improve ESG performance

• Prepare for future carbon-related regulations

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What Are Greenhouse Gases (GHGs)?

Greenhouse gases are:

• Gases that trap heat in the atmosphere

• Measured as carbon dioxide equivalent (CO₂e)

• Regulated under international climate frameworks

Common industrial GHGs include:

• CO₂

• CH₄

• N₂O

• F-gases

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Key Greenhouse Gases Relevant to Industries in Malaysia

1️⃣ Carbon Dioxide (CO₂) – Most Significant

Why it matters:

• Largest contributor to total emissions

• Closely linked to energy use and fuel combustion

Main industrial sources in Malaysia:

• Electricity consumption

• Fuel-burning boilers and generators

• Manufacturing processes

• Transportation and logistics

Industries most affected:

• Manufacturing

• Food and beverage

• Logistics and warehousing

• Construction

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2️⃣ Methane (CH₄) – High Impact, Often Overlooked

Why it matters:

• Much higher global warming potential than CO₂

• Significant contributor to short-term warming

Common Malaysian industrial sources:

• Waste management and landfills

• Food processing waste

• Wastewater treatment

• Agriculture-related industries

Industries most affected:

• Food manufacturing

• Palm oil and agro-processing

• Waste management operators

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3️⃣ Nitrous Oxide (N₂O) – Low Volume, High Impact

Why it matters:

• Extremely high global warming potential

• Long atmospheric lifespan

Typical industrial sources:

• Combustion processes

• Fertilizer-related operations

• Certain chemical manufacturing processes

Industries most affected:

• Chemical manufacturing

• Agro-based industries

• Fuel-intensive operations

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4️⃣ Fluorinated Gases (F-gases) – Small Quantity, Big Risk

Why they matter:

• Very high global warming potential

• Often unintentional emissions

Common sources in Malaysia:

• Refrigeration systems

• Air-conditioning equipment

• Cold storage facilities

• Fire suppression systems

Industries most affected:

• Food cold chain

• Logistics and warehousing

• Data centers

• Manufacturing plants with cooling systems

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Why These Gases Matter to Malaysian Businesses

GHG relevance is linked to:

• ESG reporting expectations

• Carbon pricing readiness

• Energy and operational efficiency

• Export and supply chain requirements

Understanding GHG sources helps businesses:

• Prioritize emission reduction efforts

• Improve data accuracy

• Reduce compliance risks

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GHG Emissions by Scope: What Businesses Should Know

Scope 1 – Direct Emissions

• Fuel combustion on-site

• Company-owned vehicles

• Refrigerant leaks

Scope 2 – Indirect Energy Emissions

• Purchased electricity

• Purchased steam or cooling

Scope 3 – Value Chain Emissions

• Supplier emissions

• Transportation and distribution

• Waste disposal

Many Malaysian companies:

• Start with Scope 1 and 2

• Gradually expand to Scope 3

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Common Misconceptions About Greenhouse Gases

❌ Only CO₂ matters
❌ GHG tracking is only for large corporations
❌ SMEs have negligible emissions

✅ Multiple gases contribute to climate impact
✅ SMEs are part of larger supply chains
✅ Indirect emissions can be significant

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How Industries in Malaysia Can Start Managing GHG Emissions

Practical First Steps

• Identify main energy and fuel sources

• Review refrigeration and cooling systems

• Track waste and wastewater management

• Collect basic emission data

• Prioritize high-impact emission sources

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Standards That Support GHG Management

ISO standards commonly used include:

• ISO 14064 – Greenhouse Gas Accounting

• ISO 14067 – Product Carbon Footprint

• ISO 14001 – Environmental Management System

• ISO 50001 – Energy Management System

These standards help businesses:

• Measure emissions accurately

• Improve transparency

• Prepare for future regulations

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Final Thought

For industries in Malaysia, understanding which greenhouse gases matter most is the foundation of effective carbon management.

It is not about tracking everything at once—but about:

• Identifying key emission drivers

• Managing risks strategically

• Building long-term business resilience