Joint Statement by Bank Negara Malaysia and Securities Commission Malaysia on the 14th Joint Committee on Climate Change (JC3) Meeting

Kuala Lumpur, 27 January 2025

The 14th Joint Committee on Climate Change (JC3) meeting was held on 22 January 2025 to review the progress of ongoing work and discuss its priorities and action plans for 2025.

Members noted the continued progress being made by financial institutions to build their capacity to manage climate risks while supporting their clients to transition. This has been particularly evident in the setting of climate targets, inclusion of climate considerations in lending and monitoring processes through the use of the CCPT framework, as well as increasing attention on sustainability in boardroom conversations.

Support for ESG finance is also growing with more climate finance solutions offered such as sustainable supply chain financing, green capex financing for SMEs, the green export technology financing programme and ASEAN renewable energy protection solution. Similarly in the capital market, 38 issuances totaling RM13.3 billion have been raised under the SRI Sukuk Framework and/or ASEAN Standards in 2024 via collective engagements with Government Linked Companies (GLCs), Government Linked Investment Companies (GLICs) and corporates under the Sustainable Finance Action Plan.

In 2025, JC3 will continue to focus on building climate resilience of the financial sector in three key areas namely addressing data challenges, facilitating SMEs’ transition and designing climate finance solutions with a focus on sectors aligned with the National Energy Transition Roadmap (NETR) and New Industrial Masterplan (NIMP).

Members discussed progress to establish the Climate Finance Innovation Lab (CFIL) spearheaded by Bank Pembangunan Malaysia Berhad (BPMB) which aims to accelerate the development of innovative climate finance solutions to complement and scale up financial flows towards transition and green activities. This includes blended finance solutions leveraging private-public partnerships. The CFIL is expected to commence operations in the first half of 2025.

JC3 will further intensify efforts to support SMEs in building climate resilience by providing SME-centric solutions that are affordable, credible and practical. These include strengthening collaboration between banks and strategic partners under the Greening Value Chain Programme to provide SMEs with affordable disclosure solutions to help them meet demand for disclosure on their GHG emissions.

Additionally, JC3 will collaborate with certification providers to facilitate a simplified pathway for SME certification. The JC3 ESG Jumpstart portal will also be enhanced with additional features to build a vibrant community of SMEs, technical experts and solution providers.

In July 2025, JC3 will be organising an SME-focused conference that will bring together SMEs, solution providers, policymakers and sustainable corporate leaders to discuss a range of issues and opportunities relevant to the sustainable growth and development of SMEs.

Bank Negara Malaysia Deputy Governor and Co-Chair of JC3 Datuk Jessica Chew said, ‘Malaysia is already experiencing the physical impact from a range of climate-related events. In light of the increasing climate change risk, we remain focused on strengthening financial sector, business and household resilience. As we continue to build on the foundations laid since JC3 was established, we expect to be able to take a more targeted approach for JC3 to further accelerate development of climate finance.’

In addition, members also discussed the Application Handbook for Issuances of SRI-Linked Sukuk and Sustainability-Linked Bonds for the Malaysian Capital Market.

Executive Director of the Securities Commission Malaysia and Co-Chair of JC3 Salmah Bee Mohd Mydin said, ‘The Handbook, developed with support from RAM Sustainability, aims to provide clear guidance and practical steps to issuers, investment bankers, and stakeholders on the issuance of sustainability-linked fixed income instruments, thereby fostering the growth of this segment in Malaysia.’

The Handbook is enriched with case studies and feedback from key stakeholders, including JC3 SC3, Malaysian Investment Banking Association (MIBA), and International Capital Market Association (ICMA), ensuring its relevance and rigour.

Sustainability is one of the central themes of Malaysia’s ASEAN Chairmanship in 2025. JC3 will support the Government in pursuing various strategic thrusts that align with its objective of building climate resilience within the Malaysian financial sector.

Bank Negara Malaysia
Securities Commission Malaysia

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