12 COVER STORY

@ green | April-May, 2025

Malaysia is institutionalising climate governance through landmark policies like the National Climate Change Policy 2.0. As ASEAN Chair in 2025, Malaysia is pushing for a unified ASEAN negotiation bloc at COP30. The country champions fairness for developing nations through principles like CBDR-RC while promoting cooperation over competition.

BY SHEILA ROZARIO

At the recent National Climate Governance Summit 2025 in Kuala Lumpur, Minister of Natural Resources and Environmental Sustainability Nik Nazmi Ahmad set out an ambitious yet realistic roadmap for the country’ s low-carbon transition in a fireside chat moderated by Dr Gary Theseira, Chair of Climate Governance Malaysia.

Nik Nazmi’ s remarks highlighted a crucial juncture in Malaysia’ s environmental policy landscape.

“ The past year has marked a crucial chapter in Malaysia’ s climate journey,” he said, adding that the Ministry has been“ at the forefront of advancing policy reforms and strategic planning to meet our environmental commitments”.

He also acknowledged the magnitude of the challenge ahead while striking a note of confidence and collaboration.

“ The road ahead will not be easy, but with continued collaboration across government, civil society, and industry, I am confident that we can deliver climate action that is ambitious, inclusive, and effective.”

POLICY COMMITMENTS

�TECHNOLOGY SHOWCASE: Nik Nazmi tours the exhibition with Datuk Seri Dr Zaini Ujang and Dr Gary Theseira.

Indeed, 2024 and early 2025 have seen the culmination of several foundational initiatives. Among them was the launch of the National Climate Change Policy 2.0, which now serves as the country’ s primary framework for achieving climate resilience and low-carbon development.

Equally significant was Malaysia’ s submission of its first Biennial Transparency Report( BTR) to the United Nations Framework Convention on Climate Change( UNFCCC) at the end of December last year- a crucial step towards accountability and alignment with global reporting obligations.

In February 2025, the Cabinet endorsed two landmark documents- the Nationally Determined Contribution Roadmap and Action Plan( NDC-RAP) and the Long-Term Low Emissions Development Strategy( LT- LEDS).

These two documents are more than mere commitments; they provide actionable pathways towards Malaysia’ s target of net-zero emissions by 2050 and will be formally launched this month.

MARKET TOOLS Looking ahead, the legislative landscape is also set to change. The National Climate Change Bill, known as RUUPIN, is nearing completion and is expected to be tabled in Parliament this year.

Once passed, the Bill will institutionalise climate governance and embed accountability at every level of government.

Running in tandem with the development of the National Adaptation Plan, expected to be completed by 2026, is a vital tool for enhancing the country’ s resilience against the risks posed by climate change.

One of the more forward-looking tools under development is the Domestic Emissions Trading System( ETS), a core element of the upcoming Climate Change Bill and National Carbon Market Policy.

“ Together with the carbon tax, which we aim to introduce by 2026, these instruments will create a robust carbon pricing ecosystem that incentivises decarbonisation, drives innovation, and ensures a just transition for all stakeholders.”

COP30 AND ASEAN LEADER- SHIP Looking ahead, Nik Nazmi envisions a substantial role for Malaysia on the international stage. In his capacity as Chair of ASEAN in 2025, the country is well-positioned to enhance regional climate diplomacy.

Nik Nazmi disclosed that Malaysia is advocating for the

MALAYSIA ' S push toward a low-carbon future is no longer a distant aspiration- it ' s a coordinated effort unfolding across multiple fronts.

In just over a year, the country has delivered a string of pivotal initiatives that are reshaping its climate governance landscape.

The National Climate Change Policy 2.0 now serves as the nation ' s north star for climate resilience and sustainable development, replacing the earlier 2009 framework with one more aligned to global urgency.

This was closely followed by the submission of Malaysia ' s first Biennial Transparency Report( BTR) to the UNFCCC, a move that cements the country ' s commitment to international accountability

Ėarlier this year, the Cabinet endorsed two critical blueprints: the Nationally Determined Contribution Roadmap and Action Plan( NDC-RAP) and the Long-Term Low Emissions Development Strategy( LT-LEDS).

These aren ' t just policy documents— they offer practical, sector-by-sector strategies to drive Malaysia ' s net-zero emissions target by 2050.

Next on the horizon is the Climate Change Bill, slated for tabling in Parliament. This long-awaited legislation- known as RUUPIN- will provide legal teeth to Malaysia ' s climate goals, institutionalising governance and enforcement mechanisms.

Tied to it is the Domestic Emissions Trading System( ETS) and a national carbon tax by 2026, set to create a dynamic carbon pricing ecosystem that incentivises low-carbon innovation across industries.

As Chair of ASEAN in 2025, Malaysia is also stepping up as a regional climate leader, advocating for a unified ASEAN bloc in global climate talks and working on the ASEAN Common Carbon Framework to harmonise cross-border carbon credit practices.

These efforts, alongside a growing focus on tools like Carbon Capture, Utilisation and Storage( CCUS), reflect a whole-of-government, whole-of-society approach that positions Malaysia as a climate-ready economy in a fast-warming world.