Malaysia & Climate Bonds Initiative Launch Toolkit to Boost Transition Finance

KUALA LUMPUR, MALAYSIA – 2 April 2024 – Capital Markets Malaysia (“CMM”), an affiliate of the Securities Commission Malaysia (“SC”) in collaboration with the Climate Bonds Initiative (“Climate Bonds”) right now launched its interactive Transition Strategy Toolkit (“toolkit”) that’s geared toward supporting native and regional efforts in direction of the worldwide internet zero objective by leveraging transition finance amongst mature and mid-tier corporates. The toolkit is designed to provide companies in ASEAN searching for to entice capital for his or her transition wants with insights on constructing credible science-based local weather transition plans which can be aligned to the Paris Agreement targets or respective nationwide local weather targets.

The toolkit particulars the underlying rules and parts to be integrated when creating local weather transition plans, by guiding customers via the Climate Bonds Five Principles for an formidable transition, enabling traders to simply determine investments that help a low-carbon transition.

Datin Azalina Adham, Managing Director of the SC and Board Member of CMM mentioned, “The Transition Strategy Toolkit takes a consultative strategy in providing steerage to companies working throughout ASEAN as it’s designed to contemplate the precise nuances of decarbonisation targets of every ASEAN nation, whereas offering a benchmark in opposition to the Climate Bonds Initiative’s formidable transition methodology.

“Malaysian corporates embarking on their transition methods, monetary establishments providing transition financing and institutional traders wanting to spend money on credible transition initiatives will discover the Toolkit helpful in figuring out and assessing plans, targets and targets that meet globally accepted transition rules.

“The launch of this Toolkit builds on the SC’s continued efforts to help Malaysia’s carbon impartial aspirations specified by latest coverage initiatives such because the National Industrial Masterplan 2030 and the National Energy Transition Roadmap by offering finest follow steerage to companies searching for to entice capital for transition initiatives that may advance our nationwide local weather agenda. While we progress on our journey to carbon neutrality, it can be crucial to be certain that the rules for a simply transition are adhered to,” she added.

CEO and Founder of Climate Bonds, Sean Kidney mentioned, “We are delighted to collaborate with CMM to develop this toolkit for ASEAN companies. Transition plans are important within the journey in direction of the Paris targets. They have to be constructed on clear targets, efficient methods, ample monetary help, and unwavering management. Harmonisation of key rules underpinning transition plans will encourage the circulate of inexperienced capital to ASEAN companies.”

The web-based Toolkit utilises an interactive query and reply (Q&A) interface that begins with a threat evaluation supported by key definitions and the CBI methodology to provide important and systematic steerage on areas to contemplate when creating complete transition plans. By going via the interactive Q&A, companies will likely be in a position to decide the place they stand and determine key areas to tackle to obtain the 5 Hallmarks which can be totally aligned with and construct on the thematic pointers from the International Capital Market Association (ICMA), in addition to the disclosure necessities from the Task Force on Climate-Related Financial Disclosures (TCFD).

The hallmarks embrace Paris-aligned efficiency targets, sturdy plans with a transparent step-by-step qualitative implementation plan in direction of targets, actions being carried out with recognized metrics and indicators to assess supply, governance of accountability mechanisms and management programs wanted to drive the transition in addition to clear disclosures for credibility and comparability throughout nationwide and world friends.

In conjunction with the launch of the toolkit, CMM hosted a webinar on Transition Finance in ASEAN on 27 March that includes audio system from the Climate Bonds Initiative, UK Transition Plan Taskforce (TPT) and the Securities Commission Malaysia, highlighting latest world initiatives in supporting transition finance.

Capital Markets Malaysia

The Securities Commission Malaysia (“SC”) arrange Capital Markets Malaysia (“CMM”) in 2014 to spearhead the native and worldwide positioning in addition to profiling of the Malaysian capital market. Funded by the Capital Markets Development Fund, CMM showcases the competitiveness and attractiveness of the assorted segments of the Malaysian capital market – to promote worldwide participation and improve alternatives for home capital market intermediaries. CMM works to help the development of those entities via varied initiatives and partnerships, specializing in 4 key areas: sustainable finance and investing, the Islamic capital market, the digital market, and capital market funding alternatives via the personal market. For extra info, go to the CMM web site at www.capitalmarketsmalaysia.com.

Climate Bonds Initiative

Climate Bonds Initiative is a global organisation working to mobilise world capital for local weather motion, via the event of the Climate Bonds Standard and Certification Scheme, Policy Engagement and Market Intelligence work, in addition to empowering Partner organisations with the instruments and information wanted to navigate, affect, and instigate change. For extra info, go to the Climate Bonds Initiative web site at www.climatebonds.internet.