Malaysia Programme

Malaysia has seen significant shifts in the climate governance landscape over the last few years and UK PACT is proud to be a partner in further accelerating strategic climate action.

Malaysia continues to make progress on its international climate commitments evidenced most recently by the transition of the Malaysian Green Technology Corporation (MGTC) to include the function of a climate change centre. The UK and Malaysia share the common goal of tackling climate change and have agreed to share best practices and approaches for climate action. The countries will have the unique opportunity to work together to address this global challenge ahead of COP26, and UK PACT is well positioned to share expertise and build capacity to advance a long-term climate transition agenda in Malaysia.

The areas of focus for Malaysia-UK PACT are: low carbon planning, nature, energy and green finance. In light of the COVID-19 pandemic and its socio-economic impact in Malaysia, we also welcomed innovative projects that respond to this situation across the above themes and with respect to green recovery.

Watch the recording from our portfolio launch event to learn more about our projects.

Portfolio of projects

Following the launch of Malaysia-UK PACT in July 2020, five projects have now been selected in the following areas:

MYS infographic

Project lead - Eco-Ideal Consulting Sdn. Bhd.

Developing a low carbon city planning system for PLANMalaysia

“This project will kick-start low carbon initiatives by local authorities and assist them to better carry out their roles in local land-use planning.” - TPr Dr. Alias bin Rameli, Director of Research and Development Division, PLANMalaysia

The project will develop the first web-based portal system: MYEcoPlan, aiming to promote the integration of carbon emissions data into Malaysia’s city planning. Town planners will be able to assess existing emissions and access data, graphs and maps to generate carbon reduction scenarios by applying different low carbon initiatives. The tool will provide local authorities with better decision-making processes for the design of low carbon developments.

Project lead - PwC Malaysia

Green economy policy for Sarawak

"Developing a green economy policy framework for Sarawak, with its significant forest area and biodiversity, can make it an attractive destination with the right ecosystem for investments in green and climate-friendly solutions. This could be used as a template for others across the region.” - Andrew WK Chan, Partner & Sustainability Leader, PwC South East Asia Consulting

The project will develop a green economy policy framework for the state of Sarawak, which has the largest forest cover in Malaysia. This will enable the Sarawak government to adopt and implement the policies and regulations needed to support a well-functioning carbon trading scheme. The development of carbon offsetting can help Sarawak drive key environmental, social and economic benefits by reducing carbon emissions, optimising value for multiple stakeholders and promoting sustainable economic growth.

Project lead - Forever Sabah

Renewable energy rural electrification roadmap for Sabah

“Our Road Map for renewable energy mini-grids will give access to electricity for education, wellbeing and livelihoods, and ensure that Sabah’s energy path protects the natural environment for generations to come.” - Cynthia Ong, Chief Facilitating Officer, Forever Sabah

The project aims to ensure access to affordable, reliable and sustainable energy for the state of Sabah, which accounts for over 70% of Malaysia’s rural electrification need. Most of Sabah’s unelectrified villages are remote, indigenous and communities too far from the state grid to be connected cost-effectively. The road map will help assemble the data, strategies, skills and collaborations necessary to plan renewable energy sources for at least half of the non-electrified villages in Sabah by 2027. Sources will include solar and micro hydro solutions with locally-managed mini-grids.

Project lead - Persatuan Penyelidik Rimba Malaysia (Rimba)

Enabling private sector investments into nature-based solutions in Terengganu

“Our project will be the first to demonstrate that it can be financially viable for state governments to derive income from nature-based solutions such as managing intact forests for carbon, instead of timber extraction.” - Dr. Reuben Clements, Vice-President, Rimba

This project aims to help the Terengganu State government restore and conserve its forests by capitalising on the growing interest from Malaysia’s private sector in initiatives that reduce climate and environmental footprints. It will conduct studies, engage experts, develop frameworks and recommendations to help incentivise forest protection through green finance mechanisms such as carbon credits, forest conservation offsets and Payment for Ecosystem Services (PES) schemes. The institutionalisation of green financing frameworks will enable the development of forest protection projects to generate climate benefits for Malaysia.

Project lead - WWF-UK

Harnessing green finance through climate risk management and opportunities

“Finance is a key enabler in sustainable development. Our goal is to build the capacity of the financial sector to scale up green finance in the transition towards a low carbon, nature-positive and socially equitable economy. - ”Thiaga Nadeson, Head of Market and Education, WWF-Malaysia

This project will support Malaysia’s carbon emissions reduction by shifting financing to sustainable sectors that are compatible with a 1.5oC degree future. It will help build the capacity of financial regulators and institutions, strengthening the integration of climate-related risks and opportunities into policies, decision-making processes and financial product innovations. It will also integrate Environmental, Social and Corporate Governance (ESG) in financing to promote sustainable development.

Applying to UK PACT

The first Malaysia-UK PACT call for launched in October 2020.

Projects were selected through an open call to prospective applicants following two stages: 1) Expression of Interest (EOI) to outline how a proposed project responds to the call; and 2) a request for detailed proposals for those shortlisted at the EOI stage.

Malaysia-UK PACT