Malaysia’s Joint Committee on Climate Change (JC3) is stepping up efforts to turn climate commitments into practical action, with priorities including accelerating the energy transition, strengthening flood resilience and improving climate-related reporting and financing, it said after its 17th meeting.
The committee also agreed to adopt the ASEAN Taxonomy for Sustainable Finance as the foundation of Malaysia’s Taxonomy, a move aimed at improving regional consistency and reducing the reporting burden for businesses engaged in cross-border activities, it said in a statement on last Thursday.
It is noted that JC3 held its 17th meeting on August 6. The meeting reaffirmed the need to move faster from commitment to mobilizing practical solutions. Priorities include supporting energy transition, strengthening climate resilience especially against floods, and strengthening mechanisms to measure and report outcomes.
Supporting implementation of the National Sustainability Reporting Framework (NSRF), the JC3 issued the NSRF Guidance Documents for Banks and Insurers and Takaful Operators.
The guidance aims to make sustainability-related disclosures more robust, consistent, comparable and purposeful.
Through practical solutions, the guidance addresses common implementation challenges in sustainability reporting, including risk and opportunity assessments, strategy disclosures, and the use of metrics and targets. Hands-on capacity-building programs will begin in October 2026 to support implementation.
“The NSRF Guidance Documents will help financial institutions and insurers and takaful operators navigate reporting challenges and support their transition towards high-quality, decision-useful sustainability disclosures,
“It also complements the efforts of the Advisory Committee on Sustainability Reporting (ACSR) in providing implementation and capacity-building support for scoped-in entities,” said Neetasha Rauf, Chief Sustainability Officer of the Securities Commission Malaysia and Co-Chair of JC3.
The meeting noted further progress under the Climate Finance Innovation Lab (CFIL), which continues to connect climate- and nature-related projects with funding opportunities. Under the second cohort, 22 projects seeking MYR 1.73 billion ($430 million) in funding will undergo a structured accelerator program in collaboration with the United Nations Global Compact Network Malaysia, Brunei and Cambodia (UNGCMBC).
This segment will support business model refinement, impact assessment and funding facilitation. Interested funders are encouraged to engage with CFIL to help scale impactful climate- and nature-related solutions.
Members also agreed to fully adopt the ASEAN Taxonomy for Sustainable Finance as the basis for the Malaysia Taxonomy.
This marks a significant step towards greater regional interoperability, consistency and comparability in sustainable finance.
Additionally, this reduces the operational burden of businesses especially those with cross border trade.
JC3 will develop practical guidance and tools tailored for local implementation. A pilot with selected members will ensue prior to full adoption for reporting in 2028. The pilot aims to identify implementation challenges and inform further refinements, where necessary.
“A taxonomy is only effective if it can be applied consistently and confidently. As Malaysia adopts the ASEAN Taxonomy as the foundation of the Malaysia Taxonomy, JC3 will focus on developing practical implementation guidance and tools to support its use,
“The pilot will help identify operational challenges early and ensure the framework remains fit for purpose and relevant for Malaysia’s needs,” said Madelena Mohamed, Assistant Governor of Bank Negara Malaysia and Co-Chair of JC3.
To support Malaysia Taxonomy implementation and sustainable finance growth, JC3 will also explore a centralized climate- and nature-related data platform.
It sees better access to reliable data will help financial institutions, businesses and investors assess risks and opportunities, meet reporting requirements and channel capital to sustainable and transition activities.
JC3 to advance climate agenda through coordinated and collaborative efforts