UK-Malaysia PACT 2.0 will support the country's ambitious net-zero transition through targeted, high-impact projects.
The United Kingdom and Malaysia today strengthened their climate partnership with the launch of the second phase of the Malaysia-UK Partnering for Accelerated Climate Transitions (UK PACT) Fund. UK PACT is the UK's largest bilateral climate programme in Malaysia and will focus on accelerating progress in green finance and carbon markets.
The launch event presided over by H.E. Ajay Sharma CMG, the British High Commissioner to Malaysia, along with the Minister for Natural Resources and Environmental Sustainability (NRES), Datuk Seri Johari Ghani as Guest of Honour. It also brought together senior leaders from key Malaysian ministries and agencies, including the Ministry of Natural Resources and Environmental Sustainability (NRES), Ministry of Finance (MoF), Malaysia Forest Fund (MFF) and the Energy Commission (EC).
This new phase builds on the UK's support from 2020-2023 and aligns with Malaysia's recent, ambitious climate policies, including its National Energy Transition Roadmap (NETR), new 2035 NDC, and the forthcoming Climate Change Bill.
Welcoming the launch, His Excellency Ajay Sharma CMG, the British High Commissioner to Malaysia said:
Together, each of the projects in the UK PACT portfolio will support Malaysia in reaching its climate ambitions and support sustainable growth. This is just one example of how we are working together to deliver on the Strategic Partnership announced by the UK and Malaysian Prime Ministers earlier this year. This is a partnership that will increase the prosperity and security of our citizens and help protect the planet.
The programme's strategic focus was determined through extensive consultation with Malaysian counterparts. With up to £2.9m across FY 25/26 and 26/27, the Malaysia-UK PACT 2.0 portfolio aims to:
- Set clear vision and direction for private and public sector actors through a strategic roadmap for green finance.
- Stimulate investment into energy storage solutions and grid infrastructure.
- Strengthen carbon market mechanisms and institutional capacity for nature and land use.
The event gathered leaders from government, finance, NGOs, private sector, academia and research institutions, underscoring a shared commitment to a collaborative, whole-of-society approach to climate action.
