KUALA LUMPUR (Oct 14): To have climate resilience, more investments are needed, alongside a redesign of financial infrastructure, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani in his keynote speech at the Kuala Lumpur Sustainability Summit (KLSS) 2025, held in the Kuala Lumpur Convention Centre.
He shared that a preliminary estimate shows that Malaysia will require approximately US$570 billion (RM2.41 trillion) in cumulative investments over the next two decades to meet long-term climate and development goals. In comparison, Asean has a climate finance goal of US$422 billion by 2030 to ensure resilience.
He added that innovative instruments, blended financing models and policy certainty for investor confidence will be crucial in forwarding the agenda.
“While the scale of investment is significant, the cost of inaction is far higher. Across the region, we are already witnessing how climate change has affected food security, energy pricing, supply chains and public health,” he said.
“Hence, climate action must be deliberately structured, integrated and underpinned by institutional reforms to ensure that national development can be both regenerative and inclusive.”
This call aligns with the priorities of the National Energy Transition Roadmap (NETR), which includes energy supply diversification, grid modernisation and demand-side efficiency.
Despite being responsible for only 0.69% of global carbon emissions, Johari reiterates Malaysia’s commitment to building a national climate strategy that is credible and feasible.
Malaysia has pledged to reduce the economy’s carbon intensity by 45% by 2030 and it has achieved a 37.1% reduction in carbon emissions intensity in 2021. This trajectory is guided by the National Determined Contribution (NDC) Roadmap which was launched earlier in May to achieve the nation’s carbon reduction targets.
“The NDC roadmap outlines sectoral strategies and implementation pathways. More importantly, it is supported by institutional alignment, ensuring that the climate transition does not sit in isolation from national planning, fiscal policy or industrial development,” said Johari.
To reinforce this alignment, Johari said that the government is preparing the National Climate Change Bill (RUUPIN) to provide clarity on climate governance, reporting obligations and institutional coordination.
Complementing this is the National Carbon Market Policy, which is also being developed concurrently to guide the establishment of both compliance-based and voluntary carbon markets.
“Each of these pillars, the NDC, the Climate Bill and the Carbon Market Policy, reflects our integrated, transparent and objective-focused approach. Malaysia’s progress is ongoing but our direction is clear. We are strengthening the foundation of our national economy, with climate resilience at its core,” said Johari.
Additionally, Johari shared that the Plantation and Commodities Ministry has imposed a no deforestation law in the palm oil sector to maximise yield, foster sustainable agricultural practices and include smallholders, whilst maintaining the 5.7 million hectares of palm forests in the country.
Sumber: The Edge
