abdul rasheed ghaffour : opening address - malaysia's climate finance day opening address by mr abdul rasheed ghaffour, governor of the central bank of malaysia ( bank negara malaysia ), at malaysia's climate finance day at cop28 uae, dubai, 3 december 2023. * * * assalamualaikum, good morning and welcome to the malaysia pavilion. over the past few days, pressure has intensified for advanced economies to deliver on their promises to support developing economies navigate the effects of climate change. one highlight has been the agreement by world leaders on formal adoption of the loss and damage fund. with commitments trickling in, a pragmatic solution towards the delivery of these commitments is critical. another major issue taking centre stage is the debate surrounding phasing out of fossil fuels. this has a direct bearing on many developing economies, including malaysia. with the undeniable high cost of reducing emissions, a balanced approach is crucial to ensure progress both in building climate resilience, and economic and social developments. we take great interest in the outcomes of these conversations. let me now turn to malaysia. we see the climate agenda not only as a pressing challenge but an opportunity for growth. through the national energy transition roadmap, the hydrogen economy and technology roadmap, and the new industrial master plan, malaysia is taking concrete steps that will enable us to advance sustainable practices across the economy. this is consistent with a just and orderly climate transition. effective and coordinated implementation of national and sector - level transition plans by the government is crucial. it addresses a key condition for malaysia to benefit from the opportunities offered by the green transition. this can be achieved by reducing strategic and policy risks for investments in the green transition and effecting partnerships between the public and private sectors. this would mean better higher skilled jobs, more sustainable and higher income, as well as overall shared prosperity. the malaysian financial sector is working closely with the government as part of the whole - of - nation approach to turn these plans into reality. significant efforts have been invested in strengthening our collective capacity, institutional frameworks and coordination arrangements that will drive financial flows towards malaysia's climate transition efforts. you will hear today some of these efforts at this pavilion. we have a packed programme, with an exciting line up of speakers who will share what malaysia is doing to innovatively bridge traditional financing mechanisms with sustainability to fund green initiatives. 1 / 4 bis - central bankers'speeches to kick things off

trillion by 20501. our vision for malaysia to facilitate and catalyse green finance flows for the betterment of the planet aligns closely with our aspiration of becoming the renewable energy hub for asean, as well as to serve as an international gateway for islamic finance. we see the opportunity for more innovative solutions such as blended finance to support a just and orderly transition. to illustrate, by combining concessional financing and commercial funding, blended finance can help increase the bankability of high - risk green and transition projects. blended finance can also ease transition costs especially for small and medium - sized enterprises. being a nation blessed with unparalleled biodiversity, nature conservation holds paramount importance for malaysia. our rich ecosystems not only contribute to the global tapestry of life but also form the backbone of our economy and the livelihoods of many malaysians. by safeguarding our natural treasures, we ensure the sustainability of vital resources, supporting agriculture, forestry, and fisheries. as stewards of this diverse and precious land, embracing nature conservation is not just a responsibility but a pathway to a sustainable and resilient future for malaysia and beyond. 3 / 4 bis - central bankers'speeches climate and nature - related risks are tightly intertwined. climate change, driven by factors like emissions and deforestation, exacerbates extreme weather events and biodiversity loss. these changes, in turn, heighten risks of more frequent disasters, shifts in disease patterns, and challenges to food and water security. recognising these interconnections, bnm has been and will continue to actively build its knowledge and understanding of nature and role of the financial sector in nature conservation. as i wrap up my remarks, let me reiterate that malaysia welcomes the opportunity to work with partners to deliver on our commitments to fight climate change. on its part, bnm is fully committed to providing a sound and facilitative policy environment that allows for innovation to meet the large financing needs for climate risk mitigation and adaption, while strengthening climate risk management practices within the financial sector. malaysia also recognises that while the climate challenge requires urgent action by all, it is equally important for the world to chart the path forward in a just and orderly manner. this means striving to improve the wellbeing of communities all over the world, particularly for those most affected by climate change and the transition. only by promoting positive outcomes that benefit everyone and by minimising negative impacts and unintended consequences – such as