Bank Negara Malaysia and the Securities Commission Malaysia published a joint update from the 16th Joint Committee on Climate Change (JC3) meeting, setting 2026 priorities focused on mobilising finance for climate and nature-positive projects and strengthening Malaysia’s climate and sustainable finance ecosystem. Key near-term deliverables include developing a national Malaysia Taxonomy aligned to the ASEAN Taxonomy and advancing work to support sustainability reporting by financial institutions. A Call for Feedback on the Malaysia Taxonomy’s design and scope is scheduled for the end of February, seeking views on adoption and implementation considerations. The JC3 Climate Finance Innovation Lab (CFIL) reported 30 onboarded projects as at January 2026, with total funding needs exceeding RM4 billion, and will shift further towards project readiness and viability support while strengthening public-private-philanthropic partnerships. Work has also started on National Sustainability Reporting Framework (NSRF) for Financial Institutions Guidance to facilitate NSRF adoption in line with International Sustainability Standards Board requirements, building on illustrative sustainability reports for the plantation and construction sectors that reference IFRS S1 and IFRS S2. Other priorities discussed included risk-sharing mechanisms for transition and adaptation projects, policy levers for climate finance, finance solutions for carbon credit project development, integrating nature-related financial risks into regulation and initiatives, and improving access to climate and nature-related data. JC3 will host its biennial Journey to Zero Regional Conference on 28 and 29 September 2026, with further details to be announced.

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