The Joint Committee on Climate Change (JC3) in Malaysia has unveiled five key initiatives to accelerate the transition of businesses and farmers toward low-carbon practices. These initiatives include greening industrial parks, a value chain program with Bursa Malaysia, a portfolio guarantee scheme for ESG financing, an ESG jump-start portal, and the Green AgriTech program. The JC3’s efforts aim to promote sustainability and address climate change.
23 October 2023 – The Joint Committee on Climate Change (JC3) has unveiled a series of initiatives aimed at expediting the transition of businesses and farmers in Malaysia toward low-carbon practices. These announcements were made during the JC3 Journey to Zero Conference, reinforcing the committee’s commitment to advancing climate action and underscoring the pivotal role of the financial sector in promoting sustainability.
Datuk Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, emphasized the central role of the financial industry in enabling a sustainable agenda and pledged to provide a conducive policy environment for financial innovations and novel financial structures to address climate risk mitigation and adaptation. He stressed the importance of public-private partnerships and innovative blended finance approaches to meet the significant financing requirements for climate initiatives.
Dato’ Seri Dr. Awang Adek Hussin, Chairman of Securities Commission Malaysia, highlighted the financial sector’s role in supporting the government’s priorities, particularly in facilitating financing and investments for sustainable development and energy transition. He emphasized the capital market’s readiness to support sustainability and climate goals through fundraising and investments.
Y.B. Nik Nazmi Nik Ahmad, Minister of Natural Resources, Environment and Climate Change, delivered the keynote address, emphasizing the government’s commitment to sustainability. He noted that the country’s governing frameworks, including the Malaysia Madani and Ekonomi Madani, prioritize sustainability. The budget for 2024 aligns with these principles, addressing climate change and complementing other policies like the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030.
The joint public and private sector collaborations announced include:
1. Greening Industrial Parks:
- A pilot project, in collaboration with the Ministry of International Trade and Industry, Malaysian Investment Development Authority, and SIRIM, aims to transition industrial parks and tenant companies toward low-carbon and sustainable practices. This includes integrated waste management, renewable energy usage, greenhouse gas emissions monitoring, and eco-friendly production processes using SIRIM’s S.M.A.R.T solution.
2. Greening Value Chain Program with Bursa Malaysia:
- Building on the success of the JC3 Greening Value Chain (GVC) pilot program, which involved over 80 participating small and medium enterprises (SMEs) within the supply chain of corporates, this collaboration with Bursa Malaysia’s Centralised Sustainability Intelligence Platform (CSI) offers more SMEs within Public Listed Companies’ supply chains access to capacity-building support, GHG emissions reporting tools, and transition finance facilities.
3. RM1 Billion Portfolio Guarantee Scheme for ESG Financing:
- Credit Guarantee Corporation Malaysia Berhad (CGC) and 18 participating banks will provide a RM1 billion portfolio guarantee scheme to facilitate ESG financing and expand access to financing for SMEs.
4. ESG Jump-Start Portal:
- A one-stop online portal on the JC3 website offers SMEs foundational information to initiate their sustainability journey. It provides insights into capacity-building programs, certification schemes, financial incentives, and other relevant resources.
5. Green AgriTech:
- A collaborative partnership with the Ministry of Agriculture and Food Security, Lembaga Pertubuhan Peladang, and the Malaysia Digital Economy Corporation aims to pilot the Green AgriTech program, focusing on ESG practices in the agriculture sector. This program encourages the adoption of green technology and sustainable agriculture among local farmers.
Additionally, JC3 has released the 2023 Climate Data Catalogue (DC) on its website, which includes a comprehensive set of data needs and sources to support climate initiatives in Malaysia. The JC3 Journey to Zero conference is hosting over 3,000 participants, including regulators, climate experts, advocates, practitioners, and policymakers, with the goal of fostering dialogue and solutions to drive Malaysia’s transition to sustainable development.
