14/05/2025

ESG WEDNESDAY | MAY 14, 2025

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M’sia to champion biodiversity, climate resilience at COP30 o Country steps up commitment to regional collaboration and sustainable development operationalise Article 6 of the Paris Agreement, enabling Malaysia to establish a compliance-based carbon market that aligns economic growth with emissions reductions.

Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia is set to take a leading role in championing biodiversity conservation and climate resilience at COP30 2025 in Belém, Brazil, as it builds on the momentum from COP29 in Baku, Azerbaijan. The Natural Resources and Environmental Sustainability Ministry (NRES) said, with climate change posing an ever-growing threat to ecosystems and vulnerable communities, Malaysia is stepping up its commitment to regional collaboration, climate finance and sustainable development. “Despite contributing just 0.8% of global greenhouse gas emissions, Malaysia has remained steadfast in upholding the Paris Agreement at a time when some global players have stepped back. “The country views climate action as a moral and environmental responsibility, rather than a political issue, and has consistently sought to lead by example in global climate negotiations,” NRES said in a statement. NRES said, at COP29, Malaysia actively engaged in discussions to push for bold climate action, championing policies that ensure fair financial support for developing nations. “One of the major outcomes Malaysia welcomed was the establishment of a new global climate finance target of US$300 billion annually until 2035. “The country also played a key role in the operationalisation of the Loss and Damage Fund, ensuring that financial aid reaches the most vulnerable nations struggling with climate-related disasters. sustainability is reshaping consumer behaviour worldwide. According to the PwC Voice of the Consumer Survey 2024, consumers are now willing to pay up to 9.7% more for sustainably produced goods. This shift presents a significant opportunity for businesses that can cater to the rising demand for environmentally res ponsible products. Building on this momentum, the Malaysian government has chan nelled substantial support towards sustainability efforts. In Budget 2025, RM1.3 billion has been earmarked specifically for sustainability initiatives within the RM45.6 billion allocated for MSMEs. Complementing this, Bank Negara Malaysia has introduced a RM3.8 billion loan fund to promote sustainable business practices. To further accelerate this transition, SME Corp Malaysia - under the Ministry of Entrepreneur and Cooperatives Development (MECD) - is actively driving ESG adoption. Through initiatives such as the PKSlestari Programme, the agency is conducting awareness campaigns, ESG assessments, and recently launched the ESG Quick Guide for MSMEs. This integrated approach aims to empower MSMEs in navigating the shift toward more sustainable operations. While sustainability demands sustained effort and investment, responsible farming presents a

address environmental challenges,” said Cerli Febri, a representative from SKELAS. “By creating added value from local ingredients, we enable a business model that supports the growth of other MSMEs too.” One such collaboration saw Dapur Mempura team up with Pinaloka to produce pineapple tarts - a beloved festive treat in Southeast Asia. “Pinaloka wanted to diversify their pineapple products, and after several brainstorming sessions and trials, we found the perfect combination of sweet pineapple and crunchy pastry,”shared Santi. With increasing demand during festive seasons like Christmas and Eid, both businesses see strong market potential in the region. “For business partners, the tart format is simpler and more manpower-efficient. For direct consumers, it’s our bestseller,” added Wulan. “In fact, we have previously delivered 50kg of pineapple tarts for a national event hosted by Bank Indo nesia.” The success of Dapur Mempura and Pinaloka is a testament to the power of sustainable, community driven business models. By turning local produce into high value goods while preserving the environment, these MSMEs are not only strengthening Siak’s economy but also setting an inspiring example for broader adoption of green practices across the region. “By doing so, Malaysia hopes to attract green investments and position itself as a key player in sustainable finance,” they remarked. Looking ahead to COP30, NRES noted that Malaysia will present the Asean Joint Statement on Climate Change, further strengthening the region’s position in global climate negotiations. “Additionally, the country is spearheading efforts to develop the Southeast Asia Alliance (Group Sea) - a new negotiation bloc that will amplify Asean’s collective voice on climate policies. “These initiatives underscore Malaysia’s commitment to ensuring Asean nations are not left behind in the global shift toward sustainability. “At COP30, Malaysia will also continue advocating for climate finance mechanisms that support developing nations, particularly within Asean. “The country will also push for stronger public-private partnerships to accelerate low-carbon innovations and ensure that the region remains competitive in the global green economy,” NRES said.

Banking & Finance Born in the midst of the 2020 pandemic, Dapur Mempura set out to revive the traditional Malay-style Komojo sponge cake using natural ingredients like mocaf and rice bran. These healthier, gluten-free alternatives practical and accessible starting point for Malaysian MSMEs - particularly in the agriculture sector. In the second quarter of 2024, agriculture contri buted 6.3% to the national GDP, underscoring its continued relevance. Government-led frameworks like the National Agro-Food Policy 2.0 and the 12th Malaysia Plan are paving the way for a more resilient, tech-enabled food supply chain that aligns with eco logical priorities. Regional examples further highlight the potential of grassroots sustainability efforts. In Indonesia, local business transformation is reaching regional communities through initiatives such as Sentra Kreatif Lestari Siak (SKELAS). Through the Siak Sustainable Busi ness Incubation Program (KUBISA), up to 26 MSMEs have received support to develop creative business solutions that boost the local economy while preserving the natural environment. Notable success stories emerging from this programme include Dapur Mempura and Pinaloka, both of which have grown into innovative, sustainable businesses through access to mentoring, market opportunities, and product development. “Malaysian negotiators were instrumental in advocating for equitable resource distribution, pressing developed countries to fulfil their financial obligations,” they said. As Asean Chair in 2025, NRES highlighted that Malaysia is prioritising stronger regional cooperation in tackling climate change. “At COP29, the country played a central role in advancing the Asean Common Carbon Framework, an initiative aimed at fostering low carbon economies and sustainable energy transitions across Southeast Asia. “This framework is expected to lay the groundwork for a more coordinated regional response to climate challenges,” they added. Additionally, NRES remarked that Malaysia is pushing forward with a series of ambitious climate policies domestically. “The government is finalising the National Climate Change Bill, which will establish a strong legal framework for sustainability initiatives. “At the same time, Malaysia is preparing its third revision of

biodiversity recognising

conservation,

used as animal feed - for food production, at prices ranging from Rp50,000 to 100,000 per 5–10kg. Pinaloka has also scaled its impact by collaborating with 33 farmers and 21 women from several villages across a 3,380-hectare pineapple plantation. Their goal is to involve 100 farmers by the end of 2024, while maintaining peatland moisture at sustainable levels – crucial for cultivation and fire prevention. “Empty peatlands are prone to fires due to fibrous roots and dry foliage,” explained Wulan. “By planting crown pineapples and intercropping with other plants, we not only maintain soil moisture but also restore biodiversity.” The devastating forest fires of 2015 prompted renewed community efforts, with younger generations now actively participating in peatland farming involving pineapples, durians, and watermelons - all of which help minimise water evapo ration from exposed land. Today, these revitalised lands attract more local visits for plant care and watering - an indirect but vital mechanism for fire prevention. Creating added value Beyond incubation support, SKELAS and the KUBISA programme are foster ing collaboration and innovation among MSMEs.“ We continuously encourage MSMEs to innovate and work with their communities to that protecting ecosystems is crucial for climate resilience. “As one of the world’s most biodiverse nations, Malaysia will use the global climate summit to push for stronger commitments to safeguard natural habitats, combat deforestation, and promote nature based solutions to climate change,” they added. To further strengthen its climate resilience efforts, NRES noted that Malaysia is implementing the National Adaptation Plan (MyNAP), which is supported by the Green Climate Fund, an entity under the UN’s Financial Mechanism. “This plan focuses on addressing climate vulnerabilities, particularly in areas affected by flooding, coastal erosion, and extreme weather events,” they said. NRES highlighted that Malaysia is also setting its sights on becoming a leader in carbon trading, with the development of the National Carbon Market Policy. “This initiative aims to

are rooted in generational recipes. Founder Santi Lestari shared, “It’s becoming increasingly difficult for mothers to meet the needs of children who require special attention to food, such as my son who has ADHD. We want to bring back the nostalgic taste of bolu Komojo, but with a healthier twist for Indonesian families.” Meanwhile, Pinaloka – a women led business group – focuses on processing Siak crown pineapple into a range of products from jams and syrups to pastries. But their work goes far beyond food production: it serves a greater environmental mission. “Siak crown pineapple is our way of conserving peatlands and preventing forest fires,”said Wulan Suci Ningrum, a representative of Pinaloka. “Dense planting helps retain soil moisture and protects the land from drying out.” Positive ripple effects Both MSMEs exemplify how economic growth and ecological stewardship can go hand in hand. By engaging the community and embedding sustain ability in their operations, they’ve cre ated positive ripple effects in both live lihoods and local culture. Dapur Mempura, for instance, has revived interest in Riau’s culinary heritage through cooking demon strations for 80 students from Pekanbaru high schools. At the same time, it has helped boost the income of farmers in Bunga Raya Village by purchasing rice bran – previously Malaysia will present the Asean Joint Statement on Climate Change at COP30. Determined Contributions (NDC 3.0), setting more ambitious targets to align with its goal of achieving net-zero emissions by 2050,” NRES said. They said a key priority for Malaysia at COP30 will be Nationally

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