The United Kingdom and Malaysia have strengthened their climate partnership with the launch of the second phase of the Malaysia-UK Partnering for Accelerated Climate Transitions (UK PACT) Fund, the UK’s largest bilateral climate programme in Malaysia. The fund will focus on accelerating progress in green finance and carbon markets, supporting Malaysia’s efforts to achieve its climate goals. The launch event was attended by H.E. Ajay Sharma CMG, the British High Commissioner to Malaysia, and Datuk Seri Johari Ghani, Minister for Natural Resources and Environmental Sustainability, along with senior leaders from key Malaysian ministries and agencies including the Ministry of Finance, Malaysia Forest Fund, and the Energy Commission.
This new phase builds on the UK’s support from 2020 to 2023 and aligns with Malaysia’s recent climate policies, including the National Energy Transition Roadmap, the updated 2035 Nationally Determined Contribution (NDC), and the forthcoming Climate Change Bill. Speaking at the event, High Commissioner Ajay Sharma emphasized that the UK PACT projects will help Malaysia achieve its climate ambitions while promoting sustainable growth and supporting the Strategic Partnership between the two countries announced earlier this year.
The programme’s strategic focus was developed through extensive consultation with Malaysian counterparts and will deploy up to £2.9 million across the 2025/26 and 2026/27 fiscal years. Key objectives of the Malaysia-UK PACT 2.0 portfolio include creating a strategic roadmap for green finance to guide both public and private actors, stimulating investment in energy storage and grid infrastructure, and strengthening carbon market mechanisms as well as institutional capacity for nature and land use management.
The launch event brought together representatives from government, finance, NGOs, the private sector, academia, and research institutions, demonstrating a shared commitment to a collaborative, whole-of-society approach to climate action in Malaysia.
