Kuala Lumpur: Malaysia is committed to positioning ASEAN as a global leader in sustainable finance and will advocate for deeper collaboration in green financing, regional energy connectivity, and the expansion of sustainable investment frameworks. Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof emphasized that ASEAN's energy transition cannot occur in isolation, highlighting that no country can achieve its sustainability goals without strong regional cooperation.
According to BERNAMA News Agency, Fadillah stated in his keynote opening address titled 'Sustainable Financing for Energy Transition' at the 2025 ASEAN Banking and Finance Summit that the depth of collaboration will determine the speed and effectiveness of decarbonizing economies while ensuring energy security and affordability. He acknowledged the ASEAN Taxonomy for Sustainable Finance as a significant step forward but urged for further advancements.
The International Energy Agency (IEA) estimates that ASEAN requires approximately US$1.5 trillion in climate investment by 2030 to align with global sustainability goals. Fadillah advocated for harmonizing sustainable finance regulations across ASEAN to reduce investor uncertainty and facilitate cross-border capital flows. He called for standardizing green bond frameworks, aligning environmental, social, and governance (ESG) disclosure requirements, and enhancing carbon credit mechanisms to make cross-border investments in clean energy seamless and efficient.
Fadillah emphasized the need for the financial sector to lead this transformation, suggesting innovative, inclusive, and accessible financing solutions to support both large-scale renewable projects and small and medium enterprises (SMEs) adopting green technologies. He also highlighted the importance of strengthening public-private partnerships (PPPs) to share investment risks, accelerating clean energy projects, and utilizing blended finance models to enhance the bankability of green projects.
Moreover, Malaysia is taking significant strides by enhancing green investment incentives, expanding green sukuk offerings, and improving corporate access to renewable energy through the Corporate Renewable Energy Supply Scheme (CRESS). Through Energy Exchange Malaysia (ENEGEM), the country is facilitating cross-border renewable energy trade and ensuring efficient capital flow, including transactions with Singapore.
Fadillah further elaborated on the evolving role of the banking and financial sector, stressing the necessity for structured financial solutions, de-risking green projects, and supporting businesses in their transition towards sustainability. He urged the sector to adopt creative and innovative approaches, moving beyond traditional banking systems to meet the requirements of industry players and align with governmental and global directions, ensuring affordability and sustainability in energy supplies.