Bank Negara Malaysia and the Securities Commission Malaysia issued a joint statement following the 14th Joint Committee on Climate Change (JC3) meeting, setting out progress on climate-risk and sustainable finance work and agreeing 2025 priorities. The 2025 programme centres on addressing climate data challenges, facilitating small and medium-sized enterprises (SMEs) in transition, and designing climate finance solutions focused on sectors aligned with the National Energy Transition Roadmap and New Industrial Masterplan. The update highlights increasing use by financial institutions of climate targets and climate considerations in lending and monitoring processes through the Climate Change and Principle-based Taxonomy framework, alongside growth in climate finance products. In capital markets, 38 issuances totalling RM13.3 billion were raised in 2024 under the SRI Sukuk Framework and/or ASEAN Standards through engagements under the Sustainable Finance Action Plan. JC3 also discussed establishing a Climate Finance Innovation Lab spearheaded by Bank Pembangunan Malaysia Berhad to develop and scale innovative and blended climate finance solutions, as well as intensified SME support through the Greening Value Chain Programme (including more affordable greenhouse gas disclosure solutions), a simplified pathway for SME certification, and enhancements to the JC3 ESG Jumpstart portal; members additionally reviewed an application handbook for SRI-Linked Sukuk and Sustainability-Linked Bonds aimed at providing practical issuance guidance. The Climate Finance Innovation Lab is expected to commence operations in the first half of 2025, and JC3 plans an SME-focused conference in July 2025.

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