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The "Beyond COP: From insights to competitive advantage" webinar, held on December 3, 2024, co-organised by PwC and Climate Governance Malaysia with the support of Bursa Malaysia, provided a robust platform to discuss actionable strategies, centered on the Asia-Pacific and Malaysian contexts, for achieving a net-zero economy following COP29 and CBD-COP16.
Opening remarks
By Perpetua (Pep) George, Director, Asia Pacific Sustainability, Biodiversity, PwC
Pep commenced by reflecting on the transformative year for climate and biodiversity governance marked by COP29 in Baku and CBD-COP16 in Cali. Despite global political shifts and debates about the COP process's effectiveness, both conferences highlighted critical advancements in integrating biodiversity components into climate action and enabling funding for real-world adaptations, showcasing the indispensable role of collaborative governance in addressing environmental crises.
Reflections of CBD-COP16 and types of nature finance
By Perpetua (Pep) George, Director, Asia Pacific Sustainability, Biodiversity, PwC
Pep elaborated on COP16’s pivotal outcomes, including the establishment of mechanisms to amplify indigenous voices, the creation of the voluntary Cali Fund for equitable sharing of genetic resource profits, and the formalised linkages between climate and biodiversity. However, unresolved issues such as biodiversity-related financing systems were deferred to COP17 in Bangkok. Pep lauded Malaysia for its leadership, particularly as one of the first nations to submit its National Biodiversity Strategies and Action Plan (NBSAP), emphasising the importance of preparing businesses for the implementation of global biodiversity targets.
Addressing private sector involvement, Pep pointed out that over 54% of Bursa Malaysia’s market value is linked to nature-dependent sectors, urging businesses to align operations with nature-positive goals. She stressed the need for sectors such as agriculture, forestry, and infrastructure to incorporate biodiversity considerations into their frameworks, supported by evolving financial tools like biodiversity credits and Bank Negara Malaysia’s biodiversity valuation frameworks. These measures represent an urgent call for proactive adaptation to global biodiversity commitments.
Reflections on COP29 and Net Zero Economy Index
By Lit Ping Low, Partner, Asia Pacific Sustainability, Climate Change, PwC
Lit Ping reviewed critical reports released before COP29, including UNEP’s Emissions Gap Report, which revealed a 16–24 gigaton gap in annual emissions reductions needed by 2030 to stay within the 1.5°C and 2°C limits. Similarly, the Adaptation Gap Report estimated a minimum annual requirement of $215 billion to strengthen global climate resilience. She noted that PwC’s Net Zero Economy Index 2024 Report showed global decarbonisation slowing, with Malaysia experiencing a 2.4% increase in carbon intensity and a 5.9% rise in fossil fuel reliance, despite marginal improvements in energy efficiency. These figures highlight the critical need for Malaysia to urgently address its energy mix and align with global decarbonisation efforts.
Regarding outcomes from COP29, the enhanced frameworks for carbon markets under Articles 6.4 and 6.2 of the Paris Agreement mark a significant step forward in strengthening global mechanisms for carbon credit trading. These updates aim to foster international collaboration while allowing countries the flexibility to adopt stricter standards. Notably, updated Nationally Determined Contributions (NDCs) with 2035 targets from three major countries signal a competitive drive for climate leadership. Each nation has tailored sector-specific policies to align with its national priorities, reflecting diverse approaches to achieving climate goals. However, the tripling of the annual climate finance pledge to $300 billion under the New Collective Quantified Goal (NCQG) highlights ongoing challenges. This figure still falls short of the estimated $400 billion needed for mitigation and $215 billion for adaptation, raising critical concerns about the adequacy of resources and the likelihood of fulfilling these commitments.
Potential policy and economy impacts (Federal and state level)
By Beatrice Ch’ng, Senior Manager, Deals, Economics & Policy, PwC
Beatrice pointed out climate finance opportunities and encouraged Malaysia to access international funding mechanisms while encouraging collaboration with the private sector. She advocated leveraging Article 6 of the Paris Agreement to establish a robust carbon market framework, supported by the ASEAN Common Carbon Framework and capital market regulators to ensure credit integrity. Local actors were urged to integrate climate mitigation and resilience into urban planning. With a focus on blended financing and the integration of climate and nature-related risks, public-private collaboration is encouraged to create innovative, bankable projects aligned with Malaysia’s long-term sustainability objectives.
Highlights of COP29 on Energy Transition
By Jasmine Voo, Director, Sustainability and Value Creation, PwC
Complementing this, Jasmine detailed global energy transition developments, including the ambitious pledge to deploy 1,500 gigawatts of energy storage to address renewable energy integration challenges. With the NCQG falling short of the necessary funding, Jasmine highlighted the urgent need to scale up climate finance from both the public and private sectors to close funding gaps, especially for adaptation projects, and ensure that green investments are financially viable. Malaysia’s National Energy Transition Roadmap (NETR) was introduced as a framework prioritising high-impact projects based on their potential for emission reductions, economic opportunities, and inclusivity. Additionally, with Budget 2025 reinforcing Malaysia’s green agenda through incentives such as tax relief for CCUS activities and carbon taxes for hard-to-abate sectors, Jasmine called on businesses to capitalise on these opportunities to accelerate green investments and prepare for emerging carbon market mechanisms.
COP29 outcomes on Just Transition and social impact
By Malar Odayappan, Director, Social Impact, Sustainability & Climate Change, PwC
Malar emphasised the need to integrate human capital into climate strategies and recognised the crucial role of skill development in preparing the Malaysian workforce to meet the demands of a low-carbon economy. A just transition requires addressing social factors like labor rights, gender equality, and community engagement, particularly for vulnerable groups. Malar also called for a robust framework with clear milestones to guide both businesses and the government toward equitable net-zero goals. Fostering collaboration with small and medium enterprises (SMEs) and embedding Environmental, Social, and Governance (ESG) principles within organisational targets are crucial for a more inclusive, sustainable future.
Panel discussion
With Lit Ping Low, Partner, Asia Pacific Sustainability, Climate Change, PwC;
Mei Ling Tan, Senior Country Operations Officer, World Bank Group;
Dr. Ismet Yusoff, Chief Executive Officer, Minority Shareholders Watch Group (MSWG);
Moderated by Dr. Yasmin Rasyid, General Manager of Sustainability, Sime Darby Property
Focused on the evolving landscape of climate governance, the panel discussion emphasised the urgency of integrating sustainability into economic frameworks, with particular attention to transparent governance, ambitious emissions reductions, and collaboration to achieve global climate goals.
Dr. Ismet highlighted the transformative potential of the $300 billion annual climate finance pledge, urging Malaysian businesses to align their strategies with global carbon markets under Article 6 of the Paris Agreement. Businesses must create actionable, measurable climate strategies aligned with broader ESG goals. Transparency and robust governance will be critical in ensuring that climate finance delivers tangible results.
Mei Ling shared Malaysia is able to tap into many sources of financing, capacity building, advisory services, and access to global expertise. Despite active capital markets, she noted challenges in identifying credible green projects in Malaysia.
The discussion emphasised decoupling economic growth from resource consumption, with Malaysia face challenges in rising energy and natural resource demands in sectors such as transportation, construction and manufacturing. Proposed solutions include advancing public transportation and sustainable urban mobility. Dr. Yasmin raised concerns over unsustainable consumption patterns, while Mei Ling called for stronger regulatory frameworks, EPR and a shift to sustainable business models. A collaborative approach among government, financial institutions, private sector, NGOs, and consumers is essential to tackle Malaysia’s waste management challenges.
The discussion also addressed the growing demand for climate accountability from younger shareholders. Dr. Ismet called for a shift from compliance-driven to purpose-driven sustainability practices, emphasising the need for businesses to adopt transformative strategies in line with long-term climate goals.
Lit Ping stressed the need to embed sustainability into supply chains, citing the direct reliance of many economies on nature. She called for a holistic approach to tackling climate and biodiversity risks, with sector-specific strategies to address the varying challenges companies face.
Dr. Yasmin closed the session by addressing the paradox of pursuing net-zero goals amidst rising digital consumption and unsustainable practices. The discussion highlighted the transformative power of consumer demand, youth education, and simplified sustainability communication in bridging ambitious global standards with actionable corporate strategies. Malaysia’s rich biodiversity can be leveraged to attract nature-based investments and position the nation as a global leader in sustainable development.
The panel concluded with a rallying call to think ambitiously, emphasising collective action to accelerate progress toward the 1.5°C target. By leveraging strategic investments, rigorous governance, and cultural shifts, a just, sustainable net-zero economy is not just an aspiration but an achievable reality.
Closing remarks
By Dr. Gary Theseira, Director, Climate Governance Malaysia
In his closing remarks, Dr. Gary emphasised the importance of the global climate landscape, recognising the challenging yet crucial path toward achieving the 1.5°C target. He urged Malaysia to harness its strengths and capabilities, transitioning from compliance-driven strategies to innovative climate solutions tailored to the nation's needs, and driven by collective action from all Malaysians.
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