JC3 Strengthens Climate Finance Efforts with New Members, Data Initiatives, & SME Resilience Push

Key Takeaways

• Broader Representation: JC3 welcomed nine new members, expanding representation across the financial sector.
• CFIL Momentum: The Climate Finance Innovation Lab has attracted strong interest, supporting projects in energy transition, circular economy, sustainable agriculture, and biodiversity.
• Unified Malaysian Taxonomy: Work is underway to co-develop a taxonomy aligned with the ASEAN Taxonomy, progressing toward science-based screening and quantitative thresholds.
• NSRF Implementation Support: JC3 is aiding the rollout of the National Sustainability Reporting Framework across the financial sector, with potential guidance and use cases for disclosure.
• Data Accessibility & SME Focus: The fourth JC3 Data Catalogue will be released in November, and JC3 will host its first SME climate conference on 17 November to promote resilience and low-carbon business models.

Deep Dive

The Joint Committee on Climate Change (JC3) gathered for its 15th meeting recently, with more voices at the table and a clear determination to accelerate Malaysia’s climate agenda. Co-chaired by Bank Negara Malaysia and the Securities Commission Malaysia, the committee welcomed nine new members, bringing a broader and more diverse representation of the financial sector into the conversation.

The timing couldn’t be more relevant. Against a backdrop of geopolitical tensions and supply chain disruptions, members debated how these forces are shaping the pace of decarbonization and agreed that the road to net zero will require a pragmatic balance between urgency and the current limits of technology. Yet, far from discouraging them, the global shifts were seen as a chance for the region to demonstrate leadership in sustainable finance.

One sign of that momentum is the Climate Finance Innovation Lab (CFIL), launched in June and already attracting strong interest from project owners and potential funders. Its portfolio is expanding to include high-profile ASEAN initiatives like the ASEAN Power Grid and 16 other projects covering energy transition, circular economy, sustainable agriculture, and biodiversity.

For BNM Assistant Governor and JC3 Co-Chair Madelena Mohamed, the message is simple, “We must act now and decisively by scaling up climate finance and nature-positive initiatives in Malaysia. The strong interest in CFIL is encouraging, but to truly move the needle, broader and deeper industry participation is crucial.”

Alongside financing, members turned to the need for consistent definitions and standards, announcing plans to co-develop a unified Malaysian Taxonomy on Sustainable Finance. Built in collaboration with regulators, industry players, and relevant ministries, the taxonomy will evolve from principles to science-based criteria and measurable thresholds, aligning closely with the ASEAN Taxonomy. This work is closely linked to JC3’s support for rolling out the National Sustainability Reporting Framework across the financial sector, where the committee is exploring guidance and real-world examples to help firms meet disclosure requirements.

Data, often the missing piece in effective climate action, was another focus. JC3 plans to release the fourth iteration of its Data Catalogue in November, incorporating stakeholder feedback and highlighting progress in closing information gaps. SC Executive Director and JC3 Co-Chair Salmah Bee Mohd Mydin stressed that better data is essential for mobilizing capital, particularly for adaptation financing, and can strengthen companies’ ability to meet their reporting obligations under the NSRF.

The meeting also looked beyond policy and finance to the practical realities facing small and medium-sized enterprises. On 17 November, JC3 will host its inaugural SME climate conference at Sasana Kijang under the theme Building Climate Resilience: Practical Actions for SMEs. The event will offer hands-on tools, sector-specific guidance, and networking opportunities aimed at helping businesses manage climate-related risks and embrace low-carbon business models.

By the close of the meeting, members had reaffirmed their support for the Government’s vision of a climate-resilient economy set out in national policies, including the recently released 13th Malaysia Plan. It was a session that combined urgency with opportunity, a recognition that while the challenges are significant, Malaysia’s financial sector is increasingly equipped, and increasingly united, to tackle them.

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