Current World Environment Vol. 9(2), 251-259 (2014) Strategic Use of Government Procurement to Spur Renewable Energy Generation in Malaysia KHAIRUL NAIM ADHAM 1 *, CHAMHURI SIWAR 1 , SARAH AZIZ ABD GHANI AZIZ and MD. ANOWAR HOSSAIN BHUIYAN 1 1 Institute for Environment and Development (LESTARI), National University of Malaysia (UKM), 43600 Bangi Selangor, Malaysia. http://dx.doi.org/10.12944/CWE.9.2.04 (Received: May 07, 2014; Accepted: July 13, 2014) ABSTRACT The energy sector plays an important role in Malaysia’s socioeconomic development. However energy production is the largest contributor to air pollution. Malaysia’s emission intensity levels of green house gases (GHGs) in the energy sector are above the global average. In this view, government procurement which refers to the acquisition of supplies, services and works by the government plays a vital role as an economic instrument to promote sustainable use of energy - by intensifying the development of renewable energy (RE) and encourage energy efficiency practices. These would ensure continuous supply of energy for future generation, and reduce the negative impact to human and environment. In the context of Malaysia, its huge public expenditure of 24-33% of Gross Domestic Product (GDP) could be used to spur RE generation by integrating RE requirements in constructing or upgrading government buildings. By having this initiative, the government will show its strong commitment towards promoting RE generation and creating a favourable environment for RE development. Key words: Government procurement, Government green procurement, Sustainable energy, Renewable energy, Energy efficiency. INTRODUCTION Energy sector is the backbone of Malaysia’s economic development striving for high income developed nation, inclusiveness and sustainability by 2020 (KeTTHA 2009; MNRE, 2009; NEAC, 2010a; 2010b). Energy is an essential element for social and economic growth (Haw et al., 2006) and economic competitiveness requires sustainable energy production and consumption (MNRE, 2010). Malaysia’s Green Technology Policy has recognised energy sector as one of the four pillars in accelerating the Malaysia’s economic development (KeTTHA, 2010). However, rapid economic development has drastically increased the country’s energy consumption and subsequently contributing to environmental degradation. According to EU (2011), electricity generation from fossil fuels is one of the principal sources of green house gases (GHGs) emissions globally. Available evidences have shown energy production is the largest contributor toair pollution in Malaysia (KeTTHA, 2009). Moreover, Malaysia’s GHGs emission intensity levels in the energy sector are above the global average (UNDP, 2009). According to the Second National Communication to the United Nation Framework Convention on Climate Change, energy industries in Malaysia are the largest carbon dioxide (CO 2 ) emitters amounting to 35% of the total CO 2 emission (MNRE, 2009). This shows energy sustainability is vital to deal with the growing pressure on environment. For these reasons, sustainable energy development measures have become one of the Malaysian government strategies towards ensuring its vibrant and sustainable economic growth. In recognising the importance of energy sustainability, the Malaysian government has taken various measures to ensure long term reliability and security of energy supply, efficient utilization