UK, Malaysia forge green alliance

New Straits Times

18-05-2025

QISTINA SALLEHUDDIN
The United Kingdom is looking to deepen its collaboration with Malaysia and Asean on climate action, energy transition and sustainable development, recognising Malaysia's role as Asean chair and its growinggreen economy.
UK Climate Minister Kerry McCarthy, speaking in an interview with the New Straits Times, said Malaysia served as a key strategic partner for the UK in the region — both in bilateral terms and through its influence in Asean.
"As Malaysia is chairing Asean, that gives us an entry point. We are an Asean dialogue partner, so Malaysia is a really important country for us to engage with."
McCarthy said the UK and Malaysia had already established a solid foundation for cooperation on climate-related issues, with their bilateral relationship elevated to a strategic partnership in January.
This partnership includes cooperation in areas such as climate, energy and nature.
Among the key initiatives is the Forest, Agriculture and Commodity Trade (FACT) Dialogue, which Malaysia is co-chairing this year. The dialogue serves as a platform for promoting sustainable practices in critical sectors, including forestry and agriculture.
ENERGY TRANSITION AND INVESTMENT
Malaysia's commitment to a just and effective energy transition has also been recognised by the UK.
McCarthy praised the country's target to halve coal usage by 2035 and fully retire coal-fired power plants by 2044, while shifting to 70 per cent renewable energy by 2050.
"Malaysia is blessed, as the UK is, with oil and gas reserves. But we both understand the need to transition — not only to meet the 1.5° Celsius global warming target, but also to seize the economic opportunities that come with green growth," she said.
The UK is a major investor in Malaysia's green economy, with companies such as Shell active in electric vehicle infrastructure and carbon capture projects.
McCarthy identified carbon capture and storage (CCS) as a high-potential area for bilateral collaboration, noting the UK's technical expertise and infrastructure, largely inherited from its North Sea oil and gas operations.
"We've had conversations with Petronas on CCS. The UK has the capability, given our past experience with offshore oil and gas fields. Malaysia could benefit from integrating this technology into its energy strategy," she said.
Other areas of cooperation under consideration include grid modernisation, battery storage, and financing models to support large-scale renewable energy deployment.
UK-ASEAN CLIMATE ENGAGEMENT
Broadening the scope, McCarthy stressed that the UK was also committed to engaging Asean more widely on climate action, stressing the importance of a flexible, country-specific approach due to the region's diversity in development levels and infrastructure.
"It's a diverse region — different countries have different capacities and needs. But we are ready to share expertise and support where we can," she said.
She highlighted the UK's support for high-integrity voluntary carbon markets in Asean, drawing on the UK's regulatory expertise to shape the region's emerging climate finance ecosystem.
The UK is also open to working with Asean countries on developing a loss and damage financing mechanism to help vulnerable communities recover from irreversible climate impacts such as sea-level rise, extreme weather events, and environmental degradation.
The UK has already pledged £40 million to the new international Fund for Responding to Loss and Damage (FRLD), and McCarthy said Asean could benefit from developing a similar mechanism.
TOWARDS A REGIONAL POWER GRID
A key area of alignment between UK and Asean priorities lies in the development of a unified regional power grid.
McCarthy said Asean could draw lessons from the UK's North Sea strategy, where efforts are underway to create a hub for green energy interconnectors across Europe.
"We talk about the North Sea being the green power plant of Europe. Malaysia's ambition to drive a connected Asean power grid is something we strongly support and could contribute to through knowledge-sharing."
She also underscored the growing enthusiasm from British businesses and academic institutions to collaborate with Malaysian partners.
Organisations such as the Energy Industries Council, Arup, and Strathclyde University are already exploring opportunities in Malaysia's energy and sustainability sectors.
"There's real excitement across UK industry and universities about what they can contribute to Malaysia's green transition.
"There's a lot we can do together — on hydrogen, ammonia, carbon capture, and beyond," she added.