Kuala lumpur: The United Kingdom (UK) and Malaysia today strengthened their climate cooperation with the launch of the Malaysia-UK Partnering for Accelerated Climate Transitions (UK PACT) 2.0 Fund, marking the UK's largest bilateral climate initiative in Malaysia. This initiative aims to advance green finance and carbon market development as part of the two nations' commitment to a sustainable future.
According to BERNAMA News Agency, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, also performing the duties of the Natural Resources and Environmental Sustainability Minister, announced that this new phase builds upon the first programme implemented from 2020 to 2023. It aims to provide targeted support for areas crucial to Malaysia's climate transition.
At the launch of the UK PACT 2.0 Programme, Johari emphasized the power of international partnerships in enhancing national efforts. He highlighted how the collaboration combines Malaysia's policy leadership with the UK's technical expertise and global networks, creating a platform for shared learning, mutual benefit, and collective progress. The British High Commissioner to Malaysia, Ajay Sharma, was also present at the event.
Johari outlined the focus areas of UK PACT 2.0, which include strengthening Malaysia's capacity to manage a domestic emissions trading scheme, preparing for the Malaysian Forest Fund's launch of the Forest Carbon Offset mechanism, and enhancing green financing strategies to facilitate renewable energy integration into the power grid.
Over the past three years, Malaysia and the UK have cooperated towards a greener and more sustainable future, focusing on low-carbon development, clean energy transition, sustainable finance, capacity-building, and the exchange of knowledge, expertise, and innovation. Johari expressed that no country can confront the climate crisis alone, and through cooperation, sustainable growth can be accelerated, supporting the development of green industries and ensuring the resilience of both economies in the face of climate change.
Ajay Sharma added that each project under the UK PACT portfolio is designed to assist Malaysia in realizing its climate ambitions and sustaining long-term growth. The programme is an example of the initiatives under the strategic partnership announced by the UK and Malaysian prime ministers earlier this year, aiming to enhance the prosperity and security of citizens and protect the planet.
The programme, with funding up to £2.9 million across the financial years 2025/2026 and 2026/2027, intends to set a strategic roadmap for green finance. It will stimulate investment in energy storage solutions and grid infrastructure, as well as strengthen carbon market mechanisms and institutional capacity for nature and land use.