Malaysia and UK Strengthen Climate Cooperation with Launch of UK PACT 2.0

KUALA LUMPUR, Dec 11:  Malaysia and the United Kingdom have deepened their climate partnership with the launch of the second phase of the UK–Malaysia Partnership for Accelerating Climate Transition (UK PACT) 2.0, the UK’s largest bilateral climate program in Malaysia.

The new phase focuses on accelerating progress in green financing and carbon market development, building on the achievements of the first phase implemented from 2020 to 2023.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who is also Acting Minister of Natural Resources and Environmental Sustainability, said the new program aims to provide targeted support in critical areas of Malaysia’s climate transition.

“Our partnership with the United Kingdom demonstrates how international collaboration can drive national efforts,” he said at the launch officiated alongside UK High Commissioner to Malaysia Ajay Sharma.

“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.”

Johari said key priorities under the program include strengthening Malaysia’s capacity to implement the Domestic Emissions Trading Scheme (DETS). Supporting preparations for the Malaysian Forest Fund’s (MFF) upcoming Forest Carbon Offset (FCO) mechanism. Enhancing green financing strategies to expand renewable energy integration into the national grid

He highlighted that over the past three years, both countries have intensified cooperation in low-carbon development, clean energy transition, sustainable finance, capacity building, and knowledge exchange  all essential components of effective climate action.

“This cooperation reflects our shared belief that no country can face the climate crisis alone,” Johari added. “Through joint efforts, we can accelerate sustainable growth, support the development of green industries, and ensure resilient economies amid climate challenges.”

British High Commissioner Ajay Sharma said the program demonstrates the strength of the strategic partnership announced earlier this year by the prime ministers of both countries.

“This is a partnership that will improve prosperity, enhance security, and help protect the planet,” he said.

With funding of up to £2.9 million for financial years 2025/2026 and 2026/2027, UK PACT 2.0 aims to provide clear direction for the public and private sectors through strategic roadmaps for green finance, encourage investment in energy storage and grid infrastructure, and strengthen carbon market mechanisms and institutional capacity for nature-based solutions.

The initiative marks a significant step forward in Malaysia–UK cooperation as both nations work toward a more sustainable, climate-resilient future.