Kuala Lumpur, Malaysia, 24 July – Malaysia’s highly-anticipated National Climate Change bill is making steady progress and the results of a roadshow by NRES (Ministry of National Resources and Environmental Sustainability) across Malaysian states will be shared in September, then thereafter launched for a public consultation for a month for feedback, Minister YB Nik Nazmi bin Nik Ahmad said at the Unlocking capital for sustainability 2024 summit at Securities Commission today.
The bill will “accommodate various mechanisms” needed to reduce the country’s emissions, he added, such as carbon pricing. With ASEAN poised to become the fourth largest economy by 2030, Minister Nik Nazmi also called for greater regional collaboration in strengthening carbon markets and the need for an ASEAN framework to enhance the credibility of carbon markets on a global scale in light of the region’s rapid growth.
Unlocking Capital for Sustainability, hosted by Eco-Business in partnership with United Nations Environment Programme Finance Initiative (UNEP FI) is part of a series of forums across Asia that will bring together thousands of decision-makers across business, policy and civil society to discuss and commit to actionable initiatives that mobilise capital markets for sustainable development.
The Malaysian edition of the flagship sustainable finance and business summit, themed ‘Decarbonising growth, accelerating sustainability’ was held at the Securities Commission this year in partnership with Capital Markets Malaysia and a wide range of other partners, with Natural Resources and Environmental Sustainability Minister Nik Nazmi bin Nik Ahmad delivering the keynote speech.
While climate action has gained pace in Malaysia in the past year, challenges remain amid new government directives and national roadmaps launched to accelerate the energy transition and spur investments into the country’s burgeoning green economy.
The federal government must navigate different stakeholder demands as it races to table a climate change bill by 2025. Malaysia’s leaders are under pressure to implement economic reforms amid increasing costs of living and a weaker ringgit, with policymakers expected to meet competing demands and ensure that the nation’s climate agenda stays on track.
Nik Nazmi also discussed progress on Malaysia’s anticipated National Climate Change bill during a special fireside chat with Eco-Business Founder and Managing Director Jessica Cheam and its potential impact on various stakeholders, from corporates, small and medium-sized businesses, to Malaysia’s indigenous peoples and federal states’ relations.
“NRES is committed to tabling a Climate Change Bill in Parliament by 2025. We have begun visiting states and speaking to local governments and authorities to hear their concerns and input on this bill. We are also ensuring that the voices of the private sector and civil society are heard through the establishment of engagement forums namely advisory and consultative panels on climate change. These panels involve various groups of stakeholders such as the private sector, financial institutions, academia, non-government organisations, and youth,” Minister Nik Nazmi said in an afternoon keynote, while underlining the need for climate action and financing to first meet near-term goals. He also urged for greater global unity in addressing climate change amid ongoing geopolitical tensions.
“If you talk about any climate agreement, nothing will happen without some commitment from China and the US. What was interesting is that while overall geopolitical tensions are still quite high in the two countries, there were some breakthroughs with regards to climate discussions. Regardless of geopolitics, climate change is something that unites us. Say the US commits to a lofty climate goal, but China does not – this won’t work, because at the end of the day, we’re on the same planet,” said Minister Nik Nazmi.
The forum discussed topics such as the challenges Malaysia’s small and medium-sized enterprises (SME) sector faces in environmental, social and governance (ESG) disclosures; the nation’s carbon market progress; the country’s climate change bill; and the role of corporate governance in driving Malaysia’s sustainability agenda.
Malaysia’s energy transition was also a hot discussion topic at the forum. Tham Chee Aun, Founder and CEO of a clean energy provider Ditrolic Energy Group, highlighted during the second plenary that the nation requires policies that promote a more “open” electricity market, allowing for renewable energy to flow freely throughout the grid.
“Malaysia currently has a centralised utility system. But for the proliferation of renewable energy, you need to have an ‘open’ electricity market, as it would enable your road or your house to inject power into the grid. All policymakers know this is the ultimate goal, but the question is how to get there,” Tham said, also underlining the need to deploy and mobilise climate finance.
“Malaysia requires at least US$375 billion by 2050 for its energy transition, according to IRENA (the International Renewable Energy Agency). The private sector cannot come up with that amount of money each year. While there are big-cap companies in the country, I don’t think they will invest that kind of money a year on the energy transition alone. The capital must come from other sectors. The nation must be open to blended finance,” said Tham.
“Climate change and biodiversity loss represent the defining challenges of our era. Unlocking capital is pivotal in addressing these issues. We are honoured to collaborate with Eco-Business on this significant event as we strive alongside our clients to foster long-term economic resilience and mitigate the effects of climate change,” Luanne Sieh, Group Chief Sustainability Officer of CIMB Group said.
“Advancements in energy technology and deployment are crucial for a sustainable future in Malaysia. However, achieving these goals requires more than just vision, it requires clear policy frameworks, enough funding, and strong incentives. Without these, it becomes challenging for companies to invest and for the energy sector to innovate effectively. Energy technology companies, like Siemens Energy, play a crucial role in this journey by providing expertise and innovative solutions to drive progress. Together with our customers and partners, we are committed to ensuring that all Malaysians have access to secure, affordable, and sustainable energy,” said Karna Mohan, the Vice President of Finance for Siemens Energy in Asia Pacific.
Eco-Business Founder and Managing Director Jessica Cheam said this year’s discussion topics and speakers had been carefully curated to tackle the foremost issues facing business and policy leaders in Malaysia.
“The country has made notable progress in taking climate action, with new energy transition policies and the development of its carbon market and upcoming National Climate Change bill. However, to accelerate this progress and achieve scale across the country, Malaysia urgently needs to implement an enabling policy environment to attract large-scale funding for the sustainable development infrastructure it needs. Blended capital, along with capacity building and effective execution of successful public-private partnerships, will be key to accelerating the country’s wider economic and energy transition,” said Cheam.
“We cannot sit and wait as the climate crisis gathers pace – the onus is on every individual to take responsibility in addressing climate change, be it those in small and medium-sized businesses, large corporations, or in the private and public sector,” she added.
Unlocking Capital for Sustainability 2024 Malaysia’s event partners are as follows:
Strategic partners:
Supporting partner:
Networking partners:
Knowledge partners:
Outreach partners:
- Asia Investor Group on Climate Change
- Centre for Environment, Technology and Development (CETDEM)
- ESG Malaysia
- MySDG Academy
For high-resolution photos from the event, please visit this page.
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Notes to Editors:
For enquiries or photos, contact:
Vincent Tan, Eco-Business
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About Eco-Business
Established in 2009, Eco-Business is Asia Pacific’s leading media organisation on sustainable development. Its independent journalism unit publishes high quality, trusted news and views that advance dialogue and enable measurable impact on a wide range of sustainable development and responsible business issues. Eco-Business is headquartered in Singapore, with a presence in Beijing, Hong Kong, Manila, Kuala Lumpur, Jakarta, New York and correspondents across major cities in Asia Pacific. Visit www.eco-business.com.
About UNEP FI
UNEP Finance Initiative brings together a large network of banks, insurers and investors that collectively catalyses action across the financial system to deliver more sustainable global economies.
For more than 30 years the initiative has been connecting the UN with financial institutions from around the world to shape the sustainable finance agenda. We’ve established the world’s foremost sustainability frameworks that help the finance industry address global environmental, social and governance (ESG) challenges.
Convened by a Geneva, Switzerland-based secretariat, more than 500 banks and insurers with assets exceeding US$170 trillion work together to facilitate the implementation of UNEP FI’s Principles for Responsible Banking and Principles for Sustainable Insurance, as well as three UN-convened net-zero alliances. Financial institutions work with UNEP FI on a voluntary basis and we help them to apply the industry frameworks and develop practical guidance and tools to position their businesses for the transition to a sustainable and inclusive economy.
Founded in 1992, UNEP FI was the first organisation to engage the finance sector on sustainability and incubated the Principles for Responsible Investment, now the world’s leading proponent of responsible investment.
Today, we cultivate leadership and advance sustainable market practice while supporting the implementation of global programmes at a regional level across Africa & the Middle East, Asia Pacific, Europe, Latin America & the Caribbean and North America.
More details about UN Environment can be found at www.unepfi.org.
About Unlocking capital for sustainability
Unlocking capital for sustainability is an annual premier event organised by Eco-Business in partnership with UNEP FI that brings together high-level decision-makers in finance, business, government and civic society to discuss and commit to actionable initiatives that mobilise the capital markets for sustainable development projects.
More information about Unlocking capital for sustainability can be found at www.unlockingcapitalforsustainability.com.
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