KUALA LUMPUR, Aug 1 — Climate finance is crucial for meeting ambitious targets and fostering positive change, thereby ensuring a more sustainable and equitable future, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who also serves as Minister of Energy Transition and Water Transformation, said Malaysia welcomes international partnerships and investments supporting the country’s energy transition and broader climate objectives.

"We are open to cooperating with various parties, including international financial institutions and private investors, to mobilise the necessary resources for sustainable development projects,” he said in his keynote address at the "Climate Finance Summit 2024: Mobilising Capital for a Just Transition” here, today.

The one-day summit, organised by the Perdana Fellows Alumni Association, emphasised the critical need for innovative financial solutions to tackle climate challenges.

Fadillah noted that mobilising capital for a just transition offers a unique opportunity for long-term economic growth, enhanced social equity and increased investor confidence.

He emphasised the importance of recognising the urgency of the mission.

"The Intergovernmental Panel on Climate Change continues to issue stark warnings about the accelerating impacts of climate change.

"The scientific consensus is clear, that we must act decisively and swiftly to mitigate these impacts. Central to this effort is the transition to sustainable energy systems,” said Fadillah.

He also reiterated the government’s commitment to steering Malaysia towards a more sustainable future, including raising the renewable energy (RE) capacity target to 70 per cent by 2050, up from the previous 40 per cent target by 2035.

Additionally, the government plans to introduce a ‘Corporate RE Supply Scheme’ in September, allowing corporate entities to directly source green electricity from third-party RE generators.

Furthermore, the government is developing its second National Energy Efficiency Action Plan for 2026-2035 to enhance efforts in reducing national energy consumption.

"By 2026, we aim for at least 50 per cent of new bank financing to support climate or energy transition activities,” he said, referring to the integration of climate resilience into financial strategies outlined in the Malaysia Financial Sector Blueprint. — Bernama