The United Kingdom and Malaysia have launched phase 2.0 of the Malaysia-UK PACT (Partnering for Accelerated Climate Transitions) Country Fund, marking a new chapter in the two countries’ strategic climate partnership. The launch took place on 11 December 2025 in Kuala Lumpur.
Through the Malaysia-UK PACT Country Fund, both nations reaffirm their shared commitment to accelerate Malaysia’s transition toward a low-carbon, climate-resilient future, strengthening the objectives of the UK- Malaysia Climate Partnership Agreement signed in 2022. With up to £2.9 million in funding across two years, the programme is the UK’s largest bilateral climate initiative in Malaysia, focusing on two priority areas: green finance and carbon markets..
The launch event brought together senior representatives from the Ministry of Natural Resources and Environmental Sustainability (NRES), Ministry of Finance (MoF), , Malaysia Forest Fund (MFF), and the Energy Commission (EC), alongside experts from civil society, academia, and the private sector. Discussions centred on enhancing the enabling environment for clean energy investment and scaling carbon markets to strengthen Malaysia’s pathway to net-zero emissions by 2050.
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Welcoming the launch His Excellency Ajay Sharma CMG, British High Commissioner to Malaysia, said: "Together, each of the projects in the UK PACT portfolio will support Malaysia in reaching its climate ambitions and support sustainable growth. This is just one example of how we are working together to deliver on the Strategic Partnership announced by the UK and Malaysian Prime Ministers earlier this year. This is a partnership that will increase the prosperity and security of our citizens and help protect the planet." |
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UK PACT aims to accelerate Malaysia’s progress toward a low-carbon economy and contribute to a more sustainable, inclusive future through projects that strengthen institutional capacity, attract finance into energy and nature, and promote evidence-based policy reform, which align with Malaysia’s sustainable finance vision.
What new projects is Malaysia-UK PACT funding?
The lead organisations and partners implementing these interventions include:
| Project | Lead implementing partner |
| Malaysia Sustainable Finance Roadmap | Clima Capital Partners |
| Strengthening Low-Carbon Planning Policy and Institutional Capacity around Nature & Land-Use | KPMG |
| Sustainable Policies and Innovative Finance Frameworks for Energy Storage in Malaysia (SPINE-ES) | Universiti Teknikal Malaysia Melaka (UTEM) |
| Innovative Green Financing Mechanism for RE Grid Infrastructure Expansion (GRID-Fin Malaysia) | Uni-Link Smart Venture Sdn Bhd |
| The Sabah Green Grid: A market study and pilot co-design | Forever Sabah Berhad |
| Malaysia DETS Readiness and Operationalisation to Mobilise Decarbonisation Finance | Uni-Technologies Sdn Bhd (UTSB) |
| Gap Analysis for Forest Carbon Offset | Hamerkop Climate Impacts Ltd |
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Read more about the Malaysia-UK PACT Country Fund here.
