ASEAN must strengthen its climate partnerships and leverage regional cooperation to advance sustainability goals in the face of global uncertainty, Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, said on Wednesday.
In a keynote address to the Financing Asia’s Transition Conference, Nik Nazmi emphasised the need for united action across Southeast Asia following the United States’ withdrawal from the Paris Agreement and the introduction of broad tariff plans that could impact climate efforts.
“No country can face the climate crisis alone. But together, ASEAN can lead. We have natural resources, growing markets, young populations, and a shared destiny,” he said in a pre-recorded statement. “We must build on our common strengths and deepen our partnerships – across governments, businesses, civil society, and academia.”
While reaffirming Malaysia’s commitment to resolving tariff-related challenges through bilateral and regional platforms, Nik Nazmi said climate cooperation must not be sidelined.
He reiterated Malaysia’s pledge to achieve net-zero greenhouse gas emissions by 2050, with an interim goal to peak emissions by 2030 and reduce emission intensity per unit of GDP by 45 percent compared to 2005 levels.
The minister highlighted the National Energy Transition Roadmap (NETR) as a cornerstone of Malaysia’s green agenda, expected to unlock RM1.85 trillion in investment opportunities by 2050. Key areas of focus include energy efficiency, solar photovoltaics, electric vehicle manufacturing, green hydrogen, and nature-based solutions.
“Malaysia is ready to collaborate, share lessons, and take the lead where possible,” he said, noting that the green transition also represents an economic stimulus for the country’s entrepreneurs, workforce, and youth.
Nik Nazmi also urged development banks, multilateral agencies, and the private sector to work together to build a financial ecosystem that can support large-scale sustainable investment.
“Private capital must be mobilised, de-risked, and directed towards sustainable investments. Blended finance, green bonds, sustainability-linked loans, and catalytic funds must be scaled up,” he said.
He pointed to Malaysia’s green sukuk initiative and its pursuit of innovative financing mechanisms as steps toward encouraging stronger private sector engagement.
According to the Asian Development Bank, ASEAN will require around US\$210 billion annually through 2030 to support climate-aligned infrastructure, including major regional efforts like the ASEAN Power Grid. - May 7, 2025
