CGM Global Summit 2025 – Reflections Through a Banker’s Lens (Series 1/9)
Malaysia’s Climate Pathway: Reflections from YB Nik Nazmi Nik Ahmad at the CGM Global Summit 2025
At the CGM Global Summit 2025, I had the privilege to hear YB Nik Nazmi bin Nik Ahmad, Member of Parliament (Setiawangsa) and former Minister of Natural Resources, Environment and Climate Change, in a session moderated by Dr Gary Theseira of CGM.
His message was clear — Malaysia must match economic ambition with environmental responsibility.
1️⃣ Climate Law & Carbon Pricing YB Nik confirmed that the long-awaited Climate Change Bill is expected to reach Parliament soon, introducing both a carbon tax and emissions-trading scheme (ETS). This marks a vital shift from voluntary pledges to enforceable action. Malaysia’s updated Nationally Determined Contribution (NDC) will retain absolute emission targets while re-introducing conditional elements tied to international finance and technology support.
2️⃣ Building Resilience & Adaptation He emphasised that mitigation alone is not enough. The upcoming National Adaptation Plan will address floods, heatwaves, and water stress through nature-based solutions such as sponge-city design and permeable surfaces. He also called for public flood-risk maps to help citizens, insurers, and developers understand and price climate risks transparently.
3️⃣ Fair Transition & Social Trust Subsidy reforms—moving from blanket to targeted support—were described as a test of equity. As YB Nik noted, “a luxury-car owner should not receive more fuel subsidy than a motorbike rider.” Framing reform around fairness, not just climate, is key to public acceptance.
4️⃣ Protecting Forests & State Partnerships The Ecological Fiscal Transfer (EFT) has grown to RM 250 million, rewarding states that protect forests and adopt stronger laws. Yet, as land and forest remain state matters, success depends on collaboration and transparent governance.
5️⃣ Looking Ahead He also addressed emerging challenges—from the resource demands of data centres and AI to the potential role of nuclear energy beyond 2040 in achieving steady, low-carbon power. On the global stage, he urged Malaysia to join countries like Brazil in championing climate justice and fair valuation of tropical forests at COP 30.
Takeaway: Malaysia’s next chapter lies in pragmatism with purpose—growing our economy while embedding resilience, transparency, and fairness in every climate decision.
In my next post, I’ll share insights from Philippe Joubert, Founder of Earth on Board. Stay tuned!”
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