Malaysia Construction: New platform to measure and prove carbon reductions

Malaysia’s construction industry is set to gain a new digital platform designed to help companies measure, document and demonstrate their carbon reduction efforts, as CIDB Holdings Sdn. Bhd. and CI Tech Sdn. Bhd. begin a collaboration to develop CTRAX for the sector. The platform, formally launched on September 8, is intended to bring together emissions data from construction projects and supply chains, creating what its developers describe as a clearer and more auditable evidence trail for carbon performance.

The initiative involves CIDB Holdings Sdn. Bhd., a wholly owned subsidiary of the Construction Industry Development Board Malaysia, while Google Cloud Malaysia will provide cloud infrastructure to support the platform's security, privacy, availability and scalability. CTRAX is being positioned as a tool that could help construction companies move beyond broad sustainability commitments by providing measurable evidence of emissions reductions across their operations.

Dato' Ts Dr Gerald Sundaraj, Deputy Chief Executive for Operation at CIDB Malaysia, said the collaboration marked an important step for the industry as companies face increasing pressure to improve sustainability, transparency and competitiveness.

“The exchange of this Memorandum of Agreement with CI Tech, together with our strategic technology partnership with Google Cloud Malaysia, marks an important milestone for the construction industry. “CTRAX is about building trust in carbon data. By connecting material traceability, emissions measurement and verification across the construction value chain, we can give industry players credible information to reduce emissions, improve efficiency and unlock future carbon value. Together with CI Tech and Google Cloud Malaysia, we are laying the digital foundation for a more sustainable and competitive construction industry.” said Dato' Ts Dr Gerald Sundaraj, Deputy Chief Executive (Operation), CIDB Malaysia.

The platform is expected to support relevant Scope 1, Scope 2 and Scope 3 emissions data, including information relating to energy and fuel use, construction materials, transport, waste, suppliers and subcontractors. It will also progressively support embodied carbon information, allowing companies to build records relating to the carbon embedded in construction materials. This could include information such as the origin and supplier of materials, quantities used, recycled content and product carbon footprints.

CI Tech Executive Chairman Datuk Mohd Hisham Ab Halim said the platform was designed to turn sustainability ambitions into measurable business evidence. “Malaysia’s construction industry is being asked to become more sustainable, more transparent and more competitive. CTRAX will help turn that ambition into measurable evidence – and measurable evidence into trust and value,” said Datuk Mohd Hisham.

The core technology underpinning CTRAX has already been developed and previously pilot tested for traceability applications. The latest collaboration will see the technology adapted specifically for construction industry workflows and carbon accounting requirements.

CIDB Holdings will work with CI Tech on industry engagement and market development and support the onboarding of initial anchor users. The first construction sector rollout is expected in approximately six months, following technical development, engagement with industry stakeholders and preparatory work.

Google Cloud Malaysia will provide the cloud infrastructure supporting the platform, with the partnership also expected to bring advanced AI and reasoning capabilities to the management of complex carbon data.

“Google Cloud is incredibly proud to be the partner of choice for CI Tech and CIDB Holdings on this groundbreaking initiative. By hosting CTRAX on Google Cloud, we are delivering the robust security, privacy, and scalability required for critical carbon credit reporting,” said Hana Raja, Country Manager, Malaysia, Google Cloud.

“Through advanced reasoning and AI, we are empowering the platform to seamlessly turn complex carbon data into verified, credible evidence. This partnership demonstrates how cloud technology and AI can work together to accelerate Malaysia’s transition to a low-carbon economy.”

The project will also involve specialist partners supporting the carbon measurement and verification process. Peterson Consulting is supporting carbon baselining and decarbonisation planning, while Control Union will provide independent assurance and verification capabilities.

The companies stressed that CTRAX itself will not replace independent verification or recognised carbon standards. Instead, its role will be to structure and organise the underlying data and evidence needed to support credible carbon reporting and assurance.

A key principle behind the platform is what its developers describe as a “decarbonisation first” approach. Rather than focusing primarily on the creation of carbon credits, CTRAX is intended to help organisations first understand their emissions, identify opportunities to avoid and reduce them, and demonstrate the results through credible data.

Any future carbon credits would depend on appropriate independent verification and applicable standards. The initiative also supports Malaysia’s broader ambition to transition towards a lower carbon economy and achieve net zero greenhouse gas emissions as early as 2050.

For the construction industry, the potential business implications could extend beyond environmental reporting. Better carbon evidence may increasingly become important in procurement and tender processes, sustainability disclosures and commercial decision making as companies face greater scrutiny from customers, investors, regulators and supply chain partners.

With construction companies under growing pressure to demonstrate measurable environmental performance, the developers of CTRAX believe the platform could provide a practical digital foundation for making carbon data easier to measure, easier to verify and more valuable to businesses.

The next stage will involve completing contractual formalities while technical development and market engagement proceed in parallel, followed by the onboarding of initial users ahead of the planned construction sector rollout.