Virtual Conference On “Road To Glasgow And Kunming.” Ministerial Address

SALUTATIONS

Yang Amat Mulia, Tunku Ali Redhauddin, Chairman, WWF-Malaysia,

His Excellency Michalis Rokas, Ambassador of the Delegation of the European Union to Malaysia,

Yang Berbahagia Datuk Zurinah Pawanteh, Secretary General, Ministry of Energy and Natural Resources, Malaysia,

Distinguished guests, ladies and gentlemen.

A very good afternoon to all of you

INTRODUCTION

1. It is a pleasure to be here this afternoon. I would like to thank WWFMalaysia and the Delegation of the European Union to Malaysia for inviting me to this virtual conference on “Road to Glasgow and Kunming.”

2. As an engagement platform for the public and private sectors, I want to emphasise that we are at a tipping point in the fight against the climate and biodiversity crises.

3. Following through what was highlighted in the recent IPCC report, we only have a few years left to make the necessary policy changes if we truly want to avoid all the disastrous results from climate change. And this holds true, as recently, we have seen extreme weather events such as heatwaves, flooding, droughts, and wildfires becoming more common all over the world as a result of climate change.

TACKLING THE CLIMATE CRISIS

Ladies and gentlemen,

4. The COVID-19 pandemic has shown that most countries are still unprepared for multiple overlapping crises. For example, tropical cyclones can lead to floods, which in turn cause disease. Ultimately, this will intensify poverty as natural disasters endanger not only human lives, but also livelihoods. And they are likely to become even more costly in the future as the effects of climate change exacerbate them. The human and economic devastation of these shocks should not be taken lightly.

5. This is also corroborated by the recent Asia-Pacific Disaster Report published by the Economic and Social Commission for Asia and the Pacific. The annual losses from natural and biological disasters in this region are estimated to be around 780 billion US dollars. In the worst-case climate change scenario, annual economic losses from these cascading risks could total 1.3 trillion US dollars, or 4.2 percent of the region’s GDP.

6. Recognising the need to act quickly, Malaysia's government is stepping up efforts and strengthening commitments to spearhead efforts to transition to a low-carbon, climate-resilient economy. This will entail a gradual and complete transformation of our economic and financial systems, as well as sectors relating to our food, water and energy, as well as primary commodities, in a way that is sustainable, inclusive, just and fair.

7. And this is where the good news comes. According to the IMF, climate change related goals are both attainable and consistent with sound economic policies, with the potential to raise global GDP by approximately 2 per cent and create millions of new jobs throughout this decade.

8. In Malaysia, this holds true as we stand to gain competitive advantage from such policies. For example, the Government’s pledge at the Rio Earth Summit in 1992 has enabled us to maintain more than 50 percent forest cover today, which serves as a significant carbon sink. In 2016, our country’s total carbon dioxide equivalent emissions were 335 million tonnes, while our forests absorbed 260 million tonnes. This leaves us with 75 million tonnes of Green House Gases (GHG) to reduce.

9. Moving forward, to further reduce our GHG emissions, the Government has emphasised green investments such as renewables, low-carbon mobility, and energy efficiency that could potentially create thousands of job opportunities.

10. This will be complemented by our meaningful progress since the signing of the Paris Agreement, which includes

1. Firstly, we have increased our unconditional Nationally Determined Contributions (or NDC) to reduce GHG emissions to 45 percent from 35 percent previously;
2. Secondly, we have joined the Coalition of Finance Ministers for Climate Action (or CFMCA) and benefitted from various workstreams undertaken by the coalition; and
3. Thirdly, we have committed to the Helsinki Principles in promoting national climate action through fiscal policy and the use of public finance, which have been endorsed by the CFMCA.

11. And more recently, Kuala Lumpur City Hall has also launched its Sustainable Development Goals (SDG) Centre, aiming to serve as Page 6 of 10 an interactive hub that gathers all initiatives and commitments for the implementation of SDGs in Kuala Lumpur.

12. Within the Ministry of Finance, we are pursuing the green agenda. Beginning with Budget 2021, we have aligned our initiatives with the SDGs. These budgetary allocations helped support climate resilience programmes as well as biodiversity conservation. We will carry on with this exercise in the upcoming Budget 2022, which will focus on Recovery, Resilience and Reform.

TRANSITIONING TO NET ZERO AND BEYOND

Ladies and gentlemen,

13. Our Prime Minister has recently tabled the 12th Malaysia Plan (12MP) in Parliament. This five-year plan outlines initiatives that will lead to a low-carbon, climate-resilient economy based on clean, green and resilient development. Among the main measures are a focus on further developing our circular economy, greater emphasis on green growth, and a shift toward building sustainable cities.

14. At the same time, we will continue to work on pricing our emissions, and reducing our reliance on hydrocarbons while retaining at least 50 percent forest cover. Other targets which were set in the 12MP include:

1. increase the recycling rate of household waste by 40 percent and scheduled waste by 35 percent; and
2. increase the government’s green procurement share to 25 percent

15. In addition, the 12MP has outlined Malaysia's path to net zero emissions. This includes achieving carbon neutrality by 2050 and phasing out coal-powered energy generation. All of this sends strong policy signals to the business community about the country's approach to combating climate change.

16. With Malaysia considered as one of the world's top biodiversity-rich countries, the 12MP has also emphasised on protecting natural capital in order to stabilise our Malayan Tiger population, and prevent biodiversity loss. The goal is to protect 20 percent of our land area, while also providing conservation financing through programmes such as Ecological Fiscal Transfer (EFT) and Payment for Ecosystem Services (PES).

17. Other initiatives within the 12MP include a 100 per cent procurement target for non-internal combustion engine (ICE)- based government vehicles by 2030, as well as the protection of urban biodiversity and creating “sponge" cities as outlined in the sustainable cities’ agenda.

A WHOLE-OF-NATION APPROACH TOWARDS LOW-CARBON, CLIMATE RESILIENT ECONOMY

Ladies and gentlemen,

18. The transition to a low-carbon, climate resilient economy necessitates a whole-of-nation approach, and no Government can do all the heavy lifting on its own. To ensure an equitable and rapid transition to a low-carbon economy, all parties, including the public and private sectors, must collaborate.

19. In this regard, we have achieved milestones on many fronts. One of them is the establishment of the Joint Committee on Climate Change (or JC3). Through this platform, the Central Bank of Malaysia, Securities Commission and the industry are taking active steps in ensuring transparency of climate-related financial risks.

20. Meanwhile, Bursa Malaysia, our Stock Exchange, recently announced its ambitions to become carbon neutral by 2022 and achieve net zero emissions across its entire operations by 2050. Our corporates have also followed suit. Through the CEO Action Network, the leaders of corporate Malaysia have accelerated sustainable business practices, and are leading by example towards the transition to a net zero carbon economy.

21. This is where our financial sector steps in - by prioritising lending and investments towards initiatives that focus on sustainable elements. In Malaysia, we have encouraged the banking sector to be part of the UN Principles for Responsible Banking, and the NetZero Banking Alliance.

22. For our Sovereign Wealth Funds and Institutional Investors, signing the UN Principles for Responsible Investment means committing to more sustainable investments. Moving forward, we have urged them to join the Net-Zero Asset Owners Alliance in order to reduce portfolio emissions. These will encourage their investee companies to follow suit. Overall, all of these efforts will pave the way for Malaysia to develop a more comprehensive sustainable finance industry, and at the same time, complement the Government’s efforts in achieving the SDGs.

CONCLUSION

Ladies and gentlemen,

23. It is relatively simple for a country to declare that they will be carbon neutral or climate neutral by 2050. However, having a realistic plan to achieve it is more important. Today, actions speak louder than words, especially in gaining credibility and persuading others to do the same.

24. And in achieving this kind of cooperation, the transition must be just if it is to take place. This is because the COVID-19 pandemic has highlighted that people who are most vulnerable in our societies suffer the most whenever they face challenges. And I strongly believe we will see similar effects from the climate and biodiversity crisis.

25. The two Conference of Parties (COPs) taking place this year, in Kunming and Glasgow, will be very important. Not only for the sake of international relations, but also to convince global citizens that Government’s all over the world are taking this seriously – that we have a plan, and everyone is part of this plan to tackle climate change and biodiversity loss.

26. Ultimately, we must confront this threat head on because our longterm survival is at stake. It is about persuading our businesses and Governments all over the world to take collective and decisive action to ensure that humanity survives and thrives.

27. Before I conclude, allow me to share this wise saying, ‘We do not inherit this earth from our ancestors, we borrow it from our children’.

28. With that, I would like to call upon everyone to use the lessons learnt from the COVID-19 pandemic to rebuild and innovate our economies to grow back greener. All of these efforts towards a prosperous future and green growth cannot be accomplished by a single nation alone. This must be done on a global scale.

29. Let us seize this opportunity to rebuild a resilient global economy for the benefit of all. Let us make history so that in 20- or 30-years’ time, we can tell the next generation that we went above and beyond to achieve a meaningful and sustainable recovery.

30. On that note, I would like to thank WWF-Malaysia and the Delegation of the European Union to Malaysia once more for inviting me. I am looking forward to the discussions and ideas generated at this conference for the benefit of both Malaysia and the European Union as we work together to create a better future for our planet.

Thank you