Malaysia-UK PACT launch event

Introducing the latest portfolio of projects

11 August 2021 01 Welcome address 02 -UK PACT portfolio overview Project introductions by partners and Agenda 03 government beneficiaries 04 Closing remarks 05 Networking session Welcoming address

His Excellency Charles Hay MVO, British High Commissioner to Malaysia Portfolio overview

Khairun Nisa Zabidi, Malaysia-UK PACT Lead Majlis Bandaraya (MBIP)

MYEcoPlan: A low carbon city planning system

Implementing partners: Representative of Malaysia to the UN, signed the Paris Agreement, 22 April 2016

https://www.unmultimedia.org/s/photo/detail/674/0674575.html

The Paris Agreement on Climate Change

Malaysia is committed to reduce up to 45% Greenhouse Gases Emissions Intensity (GDP) by 2030 9

“The planning decisions made today will have a major impact on the carbon emissions tomorrow”

In need of a low carbon land use planning system Relevance to National Low Carbon Cities Masterplan’s Action Plan (NLCCM by GTALCC)

For more information, visit www.ukpact.co.uk NLCCM’s Target for Selected Target Cities (Absolute Carbon Reduction Targets)

Select target cities

For more information, visit www.ukpact.co.uk MYEcoPlan – project information

Provides a quantitative planning Enable land use planners to assess tool for Malaysia to monitor, track carbon reduction potential from and review their commitment the low carbon initiatives during towards reducing GHG emissions the land use planning phase or NDC targets

For more information, visit www.ukpact.co.uk Project proposed location: Nusajaya Township

Nusajaya township encompasses an area of 14,311 hectare covering Blok Perancangan or planning blocks (BP) 1, 2, 7 and 8 in the Bahru & District Local Plan (2025). The Nusajaya township is administered under MBIP which is one of the five local planning authorities under the region.

For more information, visit www.ukpact.co.uk Web portal application Operational dashboard Mobile-friendly

MYEcoPlan

(System Architecture)

Land use & Carbon MYEcoPlan emissions data geodatabase Web server Ready-to-use content

Summary of proposed Low Carbon Initiatives (LCI)

4. Integrated public transport 1. Building energy efficiency IV. Bus rapid transit improvement Low Carbon Initiatives by: 5. Renewable energy use I. Building energy index V. Rooftop solar 2. Sustainable waste 6. Afforestation/ Reforestation Activity Emission management data intensity VI. Mangrove / tree planting II. Food waste composting 7. Construction 3. Development planning VII. Low Embodied Carbon Material III. Planning density/plot ratio 8. Adaptive Planning by Demand VIII. Adjustment by GFA limit

For more information, visit www.ukpact.co.uk Example of expected output

ISKANDAR PUTERI – BUSINESS-AS-USUAL (BAU) VS 45000 CARBON REDUCTION SCENARIOS

40000

35000

30000 50% of

BAU reduction eq)

2 25000

20000 SCENARIO 1 15000 60% of reduction 10000 SCENARIO 2 5000

0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Year Total (tCO Emissions Total GHG

For more information, visit www.ukpact.co.uk MYEcoPlan system demo

For more information, visit www.ukpact.co.uk For more information, visit www.ukpact.co.uk Endorsement Note from Beneficiaries

YBrs. TPr Dr. Alias bin Rameli, Director of Research and Development Division, PLANMalaysia Pre-recorded video (to-be-added) Dato’ Haji Mohd. Haffiz bin Haji Ahmad, Mayor of Iskandar Puteri Pre-recorded video (to-be-added) Green economy policy for Sarawak intends to develop a Green Economy Policy to identify focus areas of economic policy with positive environmental and social outcomes

Sarawak is the most biodiverse state in Malaysia and Green economy policy has made significant initiatives to protect its forests and promote sustainable forest management Requirement 6.6% • Sarawak intends to develop Total land area of national a Green Economy Policy that provides the framework on 12.45 park and key focus areas, policy million ha wildlife targets, strategies benefits sanctuar the environment and socio- economy y 62.3% 33.8% Carbon trading covered with permanent forest forest estate Requirement • Sarawak intends to develop carbon credits as a new source of revenue for the state. 21.9% • Sarawak can leverage on its stateland resources (forestry, forest renewable energy) to develop carbon offset projects For more information, visit www.ukpact.co.uk 26 We will assist to develop an overarching green economy policy for Sarawak, with a special focus on enabling carbon offsets

1 Green economy policy 2 Carbon trading

Outline policy framework on the Green Economy: Develop a strategy to enable of carbon trading: • Study international experience in the transition to a • Identify requirements to develop a carbon offset scheme, green economy focusing on forest conservation • Identify and assess green economy policies adopted • Identify challenges or barriers to develop the scheme by other countries • Provide policy recommendations to address challenges • Review existing green economy policies in Sarawak and also national policies that impact Sarawak • Review of existing regulations with regards to carbon emissions • Identify potential challenges and opportunities arising from a green economy policy • Develop strategy roadmap towards developing carbon offset projects including key documentation required • Provide recommendations for adoption by Sarawak

Deliverables

A strategy paper towards implementing a carbon Recommendations of suitable green economy offset scheme for Sarawak, covering the policies, policies to be adopted by Sarawak regulations, governance and communications

For more information, visit www.ukpact.co.uk Dr. Muhammad Abdullah bin Zaidel, Director of Sarawak State Economic Planning Unit Hutanomics: Developing frameworks to enable private sector investments into nature- based climate solutions in , Malaysia Who we are

Rimba, which means ‘jungle’ in Malay, is a non-profit organization that conducts conservation research to produce evidence-based management recommendations to mitigate threats to wildlife in Peninsular Malaysia. Rimba was founded by a husband-wife team, Dr. Sheema Aziz and Dr. Gopalasamy Reuben Clements in 2010. Rimba is registered as a Society (ROS: PPM-017-14- 30122016) in .

For more information, visit www.ukpact.co.uk Rimba is incubating a new entity

In 2020, Harimau Selamanya will transition into Kenyir for Life – a new entity set up to channel investments from the private sector into the 100,000 ha Kenyir watershed to create conservation outcomes and help companies meet their ESG/Sustainability commitments. 2010 2014 2021

RIMBA ESTABLISHED HARIMAU SELAMANYA NBS/ KENYIR FOR LIFE • This project helped conserve big cat species • Protecting more forest is conditional upon by (1) monitoring their population trends, creating sustainable financing mechanisms. The and (2) eradicating poaching in Kenyir- project aims to channel investments to achieve Taman Negara four main outcomes: • Biodiversity conservation • A 30,000-ha state park was created under • Climate change mitigation this project. • Local community empowerment and • There is now a need to fund raise to education manage, protect and expand the protected • Improved management of the Kenyir State area. Efforts to achieve this is implemented Park under a new project, “Kenyir For Life”. • To achieve this, a new entity, “Nature Based Solutions Sdn. Bhd.” is established, a non- profit social enterprise. For more information, visit www.ukpact.co.uk Kenyir For Life: Recently expanded 200,000-ha Project Area of Interest

In 2021 the Terengganu state government agreed to expand the potential project area to 200,000ha, double the initial size.

For more information, visit www.ukpact.co.uk Terengganu doubles the size of protected forest in Kenyir State Park to 30,000ha 31 January 2019 “...the next phase in managing Kenyir State Park involves the development of biofinancing schemes to generate revenue from sustainable forest management.”

YAB Dato Seri Dr Ahmad Samsuri Mokhtar, Terengganu Menteri Besar Terengganu Green Financing Task force formed

After creating the legislative tool and governance framework for state parks, Terengganu set up a Green Financing Task Force on 07 April 2020 to explore how standing forests can provide alternative revenue.

The initial elected core members of the Task Force:

1. State Finance Officer – Chairman 7. General Manager of KETENGAH 2. Deputy State Finance Officer – Deputy (Lembaga Kemajuan Terengganu Chairman Tengah) 3. Assistant to State Finance Officer – Task 8. Director of State Park Management Force Secretary Council 4. Director of State Land & Minerals 9. Universiti Sultan Zainal Abidin (UNISZA) Department 10. Universiti Malaysia Terengganu (UMT) 5. Director of State Economic Planning Unit, Terengganu 11. Sunway University 6. Director of State Forestry Department 12. Rimba

For more information, visit www.ukpact.co.uk Channeling private sector fund to support forest conservation

Developing frameworks to channel Environmental, Social and Governance (ESG) investments to achieve sustainability outcomes in the 200,000 ha Kenyir Watershed.

Sustainability outcomes

1. Biodiversity conservation

2. Climate change mitigation

Kenyir For Life 3. Local community empowerment & education

4. State park management

For more information, visit www.ukpact.co.uk Exploring potential Green Financing Structures Rimba is working on develop project structures to allow long term financing that would safeguard Kenyir

INVESTORS CUSTODIAN FACILITY SUPPORT FOR FORESTS, Impact investors who have Entity to channel funds to delivery partners SRI/ESG commitments via a Joint Agreement with the state BIODIVERSITY AND government COMMUNITIES Funding is used to protect support climate change mitigation, biodiversity protection and community empowerment

RETURNS RETURNS

INVESTMENTS FINANCE

Conservation Outcome

OFFTAKE AGREEMENTS

CREDIT GUARANTEE Purchase

BENEFICIARIES Off take agreement to guarantee purchase of product RISK MITIGATION and services: Financial institution to offer credit • Carbon/Biodiversity credits guarantee • Compensation procedures from oil palm sector (recovery projects) For more information, visit www.ukpact.co.uk • Payment for ecosystem services (PES) UK PACT: Enabling nature-based solutions in Terengganu

Rimba has successfully secured UK PACT funding to support the State of Terengganu towards a low carbon transition. Hutanomics “Hutanomics” is a UK PACT funded project aimed Developing frameworks to enable private sector investments into nature-based climate solutions in Terengganu, Malaysia. Project implementing partners:

Project beneficiaries: Terengganu state government Green Financing Task Force Chair: State Economic Planning Unit Role: Convene government and private sector stakeholders to explore green financing opportunities

For more information, visit www.ukpact.co.uk 1 Problem: There is a growing interest from the private sector to invest in Nature Based Solutions projects to reduce their climate and environmental footprints primarily through carbon offsets. However, Forests and their biodiversity in Malaysia are under-protected and under-funded.

2 Constraints: Unclear guidelines around Lack of a clear framework that could Natural capital evaluation and the Lack of viable business case that captures additionality from reduced GHG enable projects and secure potential of NBS projects within the best interest of the State and reduces emissions for potential NBS projects. investments. existing land management plans. GHG emissions from forest assets.

3 UKPACT project output:

Stakeholder engagement: Technical assessments: Convene stakeholder from Information sharing and capacity GHG assessment of Baseline and NBS Feasibility assessments, develop business government and private sector building with state government project scenario for reduced cases and project structures. emissions Assessment of REDD+ integration

Application: Develop roadmap for the Implementation of outputs on an institutionalization of NBS project identified pilot project area creation

4 Project outcomes: Recommendations implemented for Climate related networks implement Finances invested in support of reduced reduced carbon emissions the identified activities/ project carbon emission

5 Impact: Reduced emissions through the implementation of an NBS reduced GHG project. Harnessing green finance through climate-related risk management and opportunities in Malaysia Finance is the heart of our economy that shapes and impacts our natural ecosystem and climate

RM 3 tril 11.7% 41% Banking asset in Financial institutions’ asset ESG integration of 6 Malaysia exposure to climate change major banks in Malaysia*

*Based on WWF”s Sustainable Banking Assessment (SUSBA) average score Source: Bank Negara Malaysia and WWF’s SUSBA of Maybank, CIMB, Hong Leong Bank, Public Bank, RHB, and Ambank in 2020

For more information, visit www.ukpact.co.uk Accelerating Malaysia’s NDC to Paris Agreement and pathway towards net zero by 2050 with three “whole-of-nation & whole-of-industry” strategies

Strategies & NDC & technical Pathway outputs assistance towards net zero Malaysia’s Nationally Determined Financing a net zero #1. Shaping climate Contribution (NDC) Target finance policy nation by 2050 [BNM climate risk Emissions intensity of “In terms of whether we can management guide] GDP by 45% by 2030 achieve Net Zero by 2050, I Whole of am confident that we will. nation & Again, I would like to #2. Building whole of emphasize the whole-of- #3. Transitioning : unconditional basis capacity & industry 35% nation approach” approach climate relevant capability of sectors 10%: upon receipt of financial sector [Industry-wide climate finance, YB Senator Tengku [JC3 flagship event sector guides in oil technology transfer and Datuk Seri Utama & Technology & gas, capacity building from Zafrul bin Tengku transfer via construction & developed countries Abdul Aziz climate scenario manufacturing] analysis (PACTA)] Minister of Finance, at JC3 flagship event, 24 June 2021

For more information, visit www.ukpact.co.uk Strategy 1: Shaping climate finance policy through BNM’s climate change risk management guide for the financial industry

Climate Change and Efforts to Principle- address based data gap Taxonomy

Climate change risk management guide Strengthen the integration of climate-related risks and Macro- opportunities into policies, TCFD economic decision-making processes application scenario and financial product guide development innovations

For more information, visit www.ukpact.co.uk Strategy 2: Enhancing capability of financial sector in climate action through industry wide capacity building

WWF and 2DII presented in 3 sessions at the JC3 flagship conference 2021 on 23 June 2021

Industry-level session to Increased capacity of financial institutions enhance the knowledge and to assess impact of climate related risks and skill of financial institutions on opportunities on businesses, strategy and climate risk and opportunities financial planning

https://jc3conference.msfi.com.my/ For more information, visit www.ukpact.co.uk https://www.sc.com.my/api/documentms/download.ashx?id=05f6a76b-f650-47f9-b9d8-cd326090b6c5 Strategy 2: Enhancing capability of banks through technology transfer of climate scenario analysis tool [Paris Agreement Capital Transition Assessment (PACTA)]

03

02 Take actions to reduce 01 Examine carbon in Assess financial risk real financial arising from economy portfolio’s misalignment through climate change with climate financing PACTA is used by over 1,500 financial transition goals institutions with over USD 106 trillion in total pathway Asset under Management (AuM) and financial regulatory authorities

For more information, visit www.ukpact.co.uk Strategy 3: Enable transitioning of climate relevant sectors through financial industry wide sectoral guides

Collaboration via Cross-Sectoral Working Group Institutions Energy sector emission intensity Policy, regulatory and governmental agencies International bodies 79.82% in Malaysia

Industrial processes and product use 6.38% (IPPU) emission intensity in Malaysia Financial Institutions Industry associations We are developing financial industry wide sectoral guides in key sectors

Corporations

Oil & Gas Construction Manufacturing

For more information, visit www.ukpact.co.uk Our Malaysia-UK PACT project is a catalyst for greater and greener transformation of the whole financial sector

Phase 1 Phase 2 Phase 3

Banking regulator & Capital market and Government industry institutional investors Ministry of Finance, Economic Bank Negara Malaysia, JC3, Securities Commission Planning Unit, etc JC3 & banks Malaysia, Bursa Malaysia, pension funds, and sovereign funds

For more information, visit www.ukpact.co.uk renewable energy rural electrification roadmap SABAH RENEWABLE ENERGY RURAL ELECTRIFICATION ROADMAP

www.sabahre2roadmap.org In this decisive decade for climate commitments and action, Sabah pivots towards the future with renewable energy and distributed generation.

Energy access for our rural communities will transform livelihoods and wellbeing, and shift power dynamics towards more equitable and diversified low carbon local economies. Sabah is a state small enough to pivot and large enough to move the regional needle.

With progressive policies on Sustainable Forest Management and achieving 100% Certified Sustainable Palm Oil, advancing energy policies and practices can take us to a tipping point.

Closing remarks

Leila Pourarkin, Deputy Director of UK International Climate Finance For more information, visit www.ukpact.co.uk Networking session Networking session We will shortly be opening the breakout rooms. Please select the room you would like to attend.

Low carbon planning Energy Green finance

Monitoring carbon stocks and flows Balancing the energy poverty gap Incorporating transition risks into at a sub-national level towards through leapfrogging the centralised corporate portfolios – will that be getting to net zero. electrification paradigm – challenges enough? and opportunities. Attendees: Attendees: Attendees: • PLANMalaysia • Sabah State Economic Planning • Bank Negara Malaysia (National Unit Bank) • Iskandar Puteri • Sabah State Ministry of Rural • Joint Committee on Climate • Sarawak State Economic Development Change Planning Unit • Sabah Electricity Sdn. Bhd. • Terengganu State Government

For more information, visit www.ukpact.co.uk THANK Stay in touch: www.ukpact.co.uk YOU [email protected]