JC3 to develop Malaysian taxonomy on sustainable finance aligning with Asean taxonomy

The Star

17 hours ago

KUALA LUMPUR: The financial regulators and industry will collaborate to co-develop the Malaysian Taxonomy on Sustainable Finance alongside relevant stakeholders and ministries through the Joint Committee on Climate Change (JC3).
In a statement today, JC3 which is co-chaired by Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) said the Malaysian Taxonomy will be aligned with the ASEAN Taxonomy.
"The taxonomy will progress from a principles-based approach, to utilising science-based technical screening criteria and quantitative thresholds to advance the accuracy and quality of assessment," said the statement in conjunction with its 15th meeting held on Aug 7, 2025.
According to JC3, the Climate Finance Innovation Lab (CFIL) which was launched in June 2025 has received strong interest from project owners and a wide range of potential funders.
This includes strategic ASEAN projects such as the ASEAN Power Grid and 16 other projects across the four thematic areas namely energy transition, circular economy, sustainable agriculture as well as biodiversity and nature-based solutions, it added.
The committee also pledged to support the collaborative efforts of the Advisory Committee on Sustainability Reporting (ACSR) in implementing the National Sustainability Reporting Framework (NSRF) across the financial sector.
"JC3 is also exploring the development of a guidance document or use cases for the financial sector to assist industry players in meeting NSRF disclosure expectations.
"In addition, the JC3 will be publishing the fourth iteration of the JC3 Data Catalogue in November this year in line with its continued commitment to address data challenges," it said.
BNM assistant governor and JC3 co-chair, Madelena Mohamed said the strong interest in CFIL by project owners and the financial sector is encouraging, albeit broader and deeper industry participation is crucial.
"We must act now and decisively by scaling up climate finance and nature-positive initiatives in Malaysia," she said.
Meanwhile, SC executive director and JC3 co-chair, Salmah Bee Mohd Mydin said climate-related data continues to be an important focus area to ensure effective mobilisation of capital especially for adaptation financing.
"Efforts to ramp up the availability and accessibility of climate-related data also support companies' ability to make effective disclosures under the NSRF," she noted. - Bernama