The UK PACT programme in Malaysia has acted as a catalyst in raising awareness about climate change and the urgency of taking action among key players in Malaysia. Between 2020 and 2023 Malaysia-UK PACT provided funding for 5 projects across multiple sectors including energy, finance, nature and low-carbon policy. Whilst these projects are now complete, their impact will continue to benefit Malaysia for many years to come, playing a pivotal role in maintaining the drive for climate action in country.
Malaysia is an upper-middle income country with growing per-capita emissions. It is set to become the 6th highest developing country emitter by 2030. However, it also has the potential for significant emissions reductions and clean growth, and is an emerging leader in ASEAN on climate issues.
The Climate Partnership MoU signed by both the UK and Malaysia government in June 2022, has been a key initiative that has provided the basis for more concerted government-to-government policy exchanges and is paving the way for direct technical assistance to be shared between governments.
Under this Climate Partnership, the UK's International Climate Finance (ICF) portfolio has helped build capacity, pilot innovations, and develop stronger evidence-based incentives for for climate action. This has sparked further conversations on policy reform in Malaysia.
The Malaysia-UK PACT programme, which concluded in 2023, has provided an important avenue of influence on climate priorities. Upon completion, a total of £2.6 million was awarded toward implementating a range of projects that have supported and continue to encourage the country’s low-carbon transition.
The projects were implemented by partners that were awarded grants during the call for proposals in 2020 and focus on four key areas: low carbon planning, nature, energy and green finance.
Malaysia-UK PACT portfolio:
| Project | Sector | Implementing partner |
| Harnessing green finance through climate risk management and opportunities: strengthening the capacity of both state and private financial institutions across the country by understanding climate-risk and how it affects investment portfolios. | Finance | WWF-Malaysia 2 Degrees Investing Initiative (2DII) |
| Enabling private sector investments into nature-based solutions in Terengganu: to develop capacity on using the carbon market and green financing solutions to accelerate forest and biodiversity protection. | Nature | Nature Based Solutions Sdn. Bhd. (formerly Rimba) |
| Developing a low-carbon city planning system with PLANMalaysia: the national planning agency and pilot-testing the MyEcoplan system with four Malaysian municipalities across three states. | Low-carbon policy | Eco-Ideal Consulting Sdn. Bhd. |
| Renewable energy rural electrification roadmap for Sabah: ensuring clean energy access to the most rural communities in the state. | Energy | Forever Sabah |
| Developing a green economy and carbon policy roadmap for the states of Sarawak and Johor. | Low-carbon policy | PwC Malaysia |
The Malaysia-UK PACT programme has made a significant contribution to Malaysia's efforts to reduce its greenhouse gas emissions and transition to a low-carbon economy. The projects under the programme have built capacity, developed knowledge and shared best practices, all of which are essential for accelerating the country's climate action. It has, further, raised awareness of climate change and the need for action among key stakeholders in Malaysia. This will be important for sustaining the momentum for climate action in the years to come.
Malaysia-UK PACT continues to be a prime example of the UK's commitment to supporting developing countries in their efforts to tackle climate change. The programme has been a success thanks to the strong partnership between the UK and Malaysia, and the commitment of all the stakeholders involved.
