Climate finance is emerging as a pivotal element in Malaysia’s journey towards a sustainable future. Deputy Prime Minister Datuk Seri Fadillah Yusof emphasized the importance of mobilizing financial resources to meet ambitious climate targets. Speaking at the “Climate Finance Summit 2024: Mobilising Capital for a Just Transition,” he highlighted the need for innovative financial solutions to address climate challenges. The summit, organized by the Perdana Fellows Alumni Association, underscored the urgency of transitioning to sustainable energy systems and enhancing social equity.
Mobilizing Capital for Climate Action
Deputy Prime Minister Fadillah Yusof stressed the significance of international partnerships and investments in supporting Malaysia’s energy transition. He noted that cooperation with international financial institutions and private investors is essential for mobilizing the necessary resources for sustainable development projects. The government aims to raise the renewable energy capacity target to 70% by 2050, up from the previous 40% target by 2035. This ambitious goal reflects Malaysia’s commitment to a greener future.
Fadillah also announced the introduction of a ‘Corporate RE Supply Scheme’ in September, allowing corporate entities to source green electricity directly from third-party renewable energy generators. This initiative is expected to boost the adoption of renewable energy and reduce the nation’s carbon footprint. Additionally, the government is developing its second National Energy Efficiency Action Plan for 2026-2035 to further enhance efforts in reducing national energy consumption.
The Deputy Prime Minister highlighted the integration of climate resilience into financial strategies as outlined in the Malaysia Financial Sector Blueprint. By 2026, the government aims for at least 50% of new bank financing to support climate or energy transition activities. This strategic approach is designed to foster long-term economic growth, enhance social equity, and increase investor confidence.
Addressing Climate Challenges with Urgency
The Intergovernmental Panel on Climate Change (IPCC) continues to issue stark warnings about the accelerating impacts of climate change. Deputy Prime Minister Fadillah Yusof emphasized the scientific consensus that decisive and swift action is required to mitigate these impacts. Central to this effort is the transition to sustainable energy systems, which is crucial for reducing greenhouse gas emissions and combating climate change.
Fadillah reiterated the government’s commitment to steering Malaysia towards a more sustainable future. He highlighted the importance of recognizing the urgency of the mission and the need for innovative financial solutions to tackle climate challenges. The Climate Finance Summit 2024 served as a platform to discuss and explore these solutions, bringing together experts, policymakers, and investors to collaborate on sustainable development initiatives.
The Deputy Prime Minister also underscored the role of climate finance in fostering positive change and ensuring a more sustainable and equitable future. By mobilizing capital for a just transition, Malaysia can achieve long-term economic growth, enhanced social equity, and increased investor confidence. The government’s proactive approach to climate finance is a testament to its dedication to addressing climate challenges and promoting sustainable development.
Enhancing Renewable Energy and Energy Efficiency
Malaysia’s commitment to renewable energy and energy efficiency is evident in its ambitious targets and strategic initiatives. The government aims to raise the renewable energy capacity target to 70% by 2050, reflecting its dedication to a greener future. The introduction of the ‘Corporate RE Supply Scheme’ in September is a significant step towards achieving this goal, allowing corporate entities to source green electricity directly from third-party renewable energy generators.
In addition to renewable energy, the government is also focusing on energy efficiency. The second National Energy Efficiency Action Plan for 2026-2035 aims to enhance efforts in reducing national energy consumption. This plan includes various measures to promote energy efficiency across different sectors, contributing to the overall reduction of greenhouse gas emissions.
Deputy Prime Minister Fadillah Yusof highlighted the importance of integrating climate resilience into financial strategies. By 2026, the government aims for at least 50% of new bank financing to support climate or energy transition activities. This strategic approach is designed to foster long-term economic growth, enhance social equity, and increase investor confidence. The government’s commitment to renewable energy and energy efficiency is a crucial component of its broader climate objectives.
