UK, Malaysia Strengthen Climate Partnership Through UK PACT 2.0 

KUALA LUMPUR, Dec 11 (Bernama) -- 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, the UK’s largest bilateral climate initiative in Malaysia aimed at advancing green finance and carbon market development.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who is also performing the duties of the Natural Resources and Environmental Sustainability Minister, said the new phase builds on the first programme implemented from 2020 to 2023 and will provide targeted support for areas critical to Malaysia’s climate transition.

“Our collaboration with the UK exemplifies how international partnerships can amplify national efforts. By combining Malaysia’s policy leadership with the UK’s technical expertise and global networks, we are creating a platform for shared learning, mutual benefit, and collective progress,” he said in his opening remarks at the launch of the UK PACT 2.0 Programme.

British High Commissioner to Malaysia Ajay Sharma was also present.

Johari said the focus areas of UK PACT 2.0 include bolstering Malaysia’s capacity to operate a domestic emissions trading scheme, preparing for the launch of the Forest Carbon Offset mechanism by the Malaysian Forest Fund, and improving green financing strategies to boost renewable energy integration into the power grid.

He said that for over three years, Malaysia and the UK have worked together towards a greener and more sustainable future by strengthening cooperation in key areas of climate action, including low-carbon development, clean energy transition, sustainable finance, capacity-building, as well as the exchange of knowledge, expertise and innovation.

“This collaboration reflects our belief that no country can confront the climate crisis alone. By working together, we can accelerate sustainable growth, support the development of green industries, and ensure that both our economies remain resilient in the face of a changing climate,” he said.

Meanwhile, Ajay said each project under the UK PACT portfolio will support Malaysia in reaching its climate ambitions and sustaining long-term growth.

He added that the programme is one example of how both countries are advancing initiatives under the strategic partnership announced by the UK and Malaysian prime ministers earlier this year.

“This is a partnership that will increase the prosperity and security of our citizens and help protect the planet,” he said.

With up to £2.9 million across financial years 2025/2026 and 2026/2027, the programme aims to set a clear direction for private and public sector actors through a strategic roadmap for green finance, stimulate investment into energy storage solutions and grid infrastructure, as well as strengthen carbon market mechanisms and institutional capacity for nature and land use.

-- BERNAMA