The Malaysia Securities Commission, in its capacity as co-chair of the Joint Committee on Climate Change (JC3), published an update from JC3’s 14th meeting setting out 2025 priorities and noting continued progress by financial institutions in building climate risk management capabilities while supporting client transition. Work highlighted includes climate target-setting, the integration of climate considerations into lending and monitoring through the CCPT framework, and increased board-level attention to sustainability. JC3 also pointed to expanding ESG finance solutions and reported 38 capital market issuances totalling RM13.3 billion raised in 2024 under the SRI Sukuk Framework and/or ASEAN Standards through engagements under the Sustainable Finance Action Plan. For 2025, the committee will focus on addressing data challenges, facilitating SMEs’ transition, and designing climate finance solutions aligned with sectors under the National Energy Transition Roadmap and the New Industrial Masterplan. Members discussed progress on establishing the Climate Finance Innovation Lab, spearheaded by Bank Pembangunan Malaysia Berhad, including blended finance solutions, and initiatives to support SMEs such as affordable greenhouse gas disclosure solutions under the Greening Value Chain Programme, collaboration with certification providers on a simplified certification pathway, and enhancements to the JC3 ESG Jumpstart portal. The meeting also discussed an Application Handbook for issuances of SRI-Linked Sukuk and Sustainability-Linked Bonds, developed with support from RAM Sustainability and incorporating stakeholder input including from the Malaysian Investment Banking Association and the International Capital Market Association. The Climate Finance Innovation Lab is expected to commence operations in the first half of 2025, and JC3 plans to organise an SME-focused conference in July 2025.

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