The UK and Malaysia strengthen climate ties with a £2.9 million fund to boost green finance, carbon markets, and renewable energy integration
KUALA LUMPUR: The United Kingdom and Malaysia have strengthened their climate cooperation with the launch of a new bilateral fund.
The Malaysia-UK Partnering for Accelerated Climate Transitions (UK PACT) 2.0 Fund is the UK’s largest bilateral climate initiative in the country.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the new phase builds on a first programme implemented from 2020 to 2023.
“Our collaboration with the UK exemplifies how international partnerships can amplify national efforts,” he said at the programme launch.
Johari, who is also performing the duties of the Natural Resources and Environmental Sustainability Minister, said the fund will provide targeted support for Malaysia’s climate transition.
He said focus areas include bolstering capacity for a domestic emissions trading scheme.
It will also prepare for the launch of a Forest Carbon Offset mechanism by the Malaysian Forest Fund.
Another key area is improving green financing strategies to boost renewable energy integration.
Johari said the collaboration reflects a shared belief that no country can confront the climate crisis alone.
“By working together, we can accelerate sustainable growth and support the development of green industries,” he added.
British High Commissioner to Malaysia Ajay Sharma said each project will support Malaysia in reaching its climate ambitions.
He added the programme advances initiatives under a strategic partnership announced by both prime ministers earlier this year.
“This is a partnership that will increase the prosperity and security of our citizens and help protect the planet,” Ajay said.
The programme has up to £2.9 million across the 2025/2026 and 2026/2027 financial years.
It aims to set a strategic roadmap for green finance for public and private sector actors.
The fund will also stimulate investment into energy storage solutions and grid infrastructure.
Another goal is to strengthen carbon market mechanisms and institutional capacity for nature and land use. – Bernama
