THE Joint Committee on Climate Change (JC3) has reaffirmed its long-term commitment to sustainable finance and climate action, pledging to strengthen collaboration across the financial sector on taxonomy development, climate data access, and small-business transition support.
Meeting for the 15th time on 7 August 2025, the committee – co-chaired by Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) – welcomed nine new members from across the financial industry, further broadening its representation.
JC3 members reviewed how shifting geopolitical dynamics and global decarbonisation efforts are affecting supply chains and accelerating the demand for climate resilience. While recognising current limitations in technological readiness, the committee stressed that the global transition presents an opportunity for Malaysia and ASEAN to lead in sustainable finance.
A key focus of the meeting was the Climate Finance Innovation Lab (CFIL), launched in June 2025, which has already attracted substantial interest from both project developers and funders. Proposals span four thematic areas – energy transition, circular economy, sustainable agriculture, and biodiversity – including regionally significant projects such as the ASEAN Power Grid.
“We must act now and decisively by scaling up climate finance and nature-positive initiatives in Malaysia,” said BNM Assistant Governor and JC3 Co-Chair Madelena Mohamed. “The strong interest in CFIL is encouraging, but to truly move the needle, broader and deeper industry participation is crucial.”
Members offered support for CFIL projects through funding, technical assistance, and risk mitigation mechanisms.
Further discussions centred on the development of a Malaysian Taxonomy on Sustainable Finance, intended to evolve from a principles-based document to one guided by science-based screening criteria and quantitative thresholds. The taxonomy will be aligned with the ASEAN Taxonomy and developed in partnership with regulators, ministries, and key industry stakeholders.
JC3 also reiterated its backing for the National Sustainability Reporting Framework (NSRF). Through collaboration with the Advisory Committee on Sustainability Reporting (ACSR), the committee aims to help financial institutions align with disclosure expectations by developing sector-specific guidance and case studies.
“Climate-related data continues to be an important focus area to ensure effective mobilisation of capital, especially for adaptation financing,” said SC Executive Director and JC3 Co-Chair Salmah Bee Mohd Mydin. “Efforts to ramp up the availability and accessibility of climate-related data also support companies’ ability to make effective disclosures under the NSRF.”
To address persistent data challenges, JC3 will publish the fourth edition of its Data Catalogue in November 2025, which will incorporate feedback on gaps and outline further collaborative solutions. The committee also called for greater public access to climate-related datasets and enhanced capacity-building initiatives.
In a further step to deepen climate resilience across the economy, JC3 will host its first SME-focused climate conference on 17 November 2025 at Sasana Kijang. Titled ‘Building Climate Resilience: Practical Actions for SMEs’, the conference will provide small businesses with tools, resources, and peer learning opportunities to adopt low-carbon practices and adapt to climate risks.
The committee also expressed continued support for the national climate agenda outlined in the 13th Malaysia Plan (RMK13), which sets out Malaysia’s ambition for an inclusive and sustainable economy grounded in resilience to climate and environmental challenges.
The Joint Committee on Climate Change (JC3) was established in 2019 as a collaborative platform between Bank Negara Malaysia, the Securities Commission, and Malaysia’s financial sector to coordinate climate risk management and sustainable finance initiatives.
JC3 is supported by five subcommittees focusing on risk, disclosure, product innovation, capacity building, and data, along with an SME Focus Group. Members include Bursa Malaysia and 25 financial institutions. - August 11, 2025
.jpeg)
