KUALA LUMPUR – Bank Negara Malaysia (BNM) is committed to assisting and facilitating the financial sector’s critical role to allow for the transition towards a low-carbon economy.
Through policies and operations, it aspires to further assist Malaysia’s economy-wide transition in an orderly and just manner.
This is consistent with the central bank’s statutory mission of promoting a strong, progressive, and inclusive financial system, with many opportunities to support sustainability efforts.
“These include projects under the National Investment Aspirations Framework, the Malaysia Climate Action Council’s plan for the nation to transform into a hub for green economy, services, and technology, and the Low Carbon Mobility Development Plan 2021-2030,” BNM stated in its recently released Annual Report 2021.
Risk management, governance and transparency, product and innovation, engagement and capacity building, as well as overcoming data gaps, are the central bank’s primary focus areas for this year.
BNM’s actions in these major focus areas for 2022 are generally consistent with its five-year strategic vision for climate strategy, as defined in the Financial Sector Blueprint on Sustainability.
Meanwhile, BNM stated that Malaysia’s goal of reaching net zero greenhouse gas (GHG) emissions by 2050 will safeguard the environment for future generations while simultaneously improving economic growth.
“Apart from minimising the risk of catastrophic climate crises, a green industrial revolution may also support up to 232,000 jobs. Malaysia can accomplish this by seizing green growth prospects,” it stated.
BNM cites new green industries such as renewable energy, hydrogen economy, electric vehicle manufacturing, and energy efficiency solutions as examples.
“A smooth and just transition will also maintain Malaysian businesses’ competitiveness by mitigating the impact of climate-risk-sensitive activities by capital providers, customers, and trading partners,” the central bank added.
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