green finance. moving forward, the push for disclosure through the establishment of a national framework for carbon emissions reporting is another critical enabler to increase data availability and transparency for a systematic transition to a low - carbon economy. this will contribute towards the development of more data driven climate policies and targeted carbon emissions reduction schemes. second, the role of finance. we have spoken about the critical need to bring in private capital for green investment. the bank, as a financial regulator, recognises this key role of finance and has introduced various measures towards this end. given physical, transition and liability risks and their implication to the economy and financial system, there is a bona fide recognition that climate risk is well within our mandate of safeguarding monetary and financial stability. with that, the bank has taken a phased and proactive approach in strengthening financial system resilience to climate risk and in driving sustainable finance. in this connection, guidance for financial institutions to classify economic activities that contribute to climate change objectives is provided through our work in developing a principles - based taxonomy. this would be the start to build deeper understanding in climate risk, for financial institutions to better identify, assess and manage the risk. the bank is now working to finalise the climate change and principles - based taxonomy, which is expected for issuance next year. the bank also collaborates with the financial industry to accelerate initiatives to build the required capacity and expertise relating to green and sustainability. through the value - based intermediation community of practitioners ( vbi cop ), various guidance documents have been developed to spur adoption of vbi, which considers the triple bottom line of people, planet and prosperity. in august this year, the value - based intermediation financing and investment impact assessment framework ( vbiaf ) sectoral guides on palm oil, renewable energy and energy efficiency were issued to guide financial institutions in implementing vbiaf on these sectors at a more granular and transactional level. work is also in progress to develop the next vbiaf sectoral guides on manufacturing, oil and gas, infrastructure and construction, targeted for issuance in 2021. furthermore, greater climate disclosure by financial institutions is in the pipeline ; as we are progressing plans to further encourage financial institutions to adopt the tcfd recommendations for climate - related disclosure. this is part of the priorities of the members of the joint committee on climate change over the next 12 months to pave the way for the adoption of disclosure standards by the industry in the immediate future3. this will

fraziali ismail : climate action in the malaysian financial sector keynote address by mr fraziali ismail, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the international greentech & eco products exhibition & conference malaysia, virtual, 20 october 2020. * * * to date, there is a genuine buzz in global climate action. the paris agreement, with 197 signatories, provides a pathway for nations to step up their climate mitigation and adaptation efforts. the uk for example, is committed to a ground - breaking target of net zero carbon emissions by 2050. there is zero budget natural farming in andhra pradesh in india, the great pivot to natural farming in china, the wide spread adoption of electric buses in public transport urban fleets all over the world, including malaysia. seventy two central banks and supervisors around the world, including malaysia have come together via the central banks and supervisors network for greening the financial system ( ngfs ) to pursue climate action. this coalition of the willing has initiated several initiatives such as identification of best practices on supervisory and macrofinancial dimensions of climate - related risks. the issue is clearly now being mainstreamed in discussions at international and state levels, among regulatory agencies, at board levels across industries, in schools, and the list goes on. but while the hills are covered, there are mountains ahead. green financing is still lacking ; green investments remain under funded. closer to the region, a recent report by the asian development bank ( adb ) highlighted that south east asian countries require funding worth usd3. 1 trillion for climate - adjusted infrastructure in the region by 20301. in malaysia, among other means, green financing is being rolled out through schemes such as the green technology financing scheme ( gtfs ). some institutions are allocating capital and steering financial flows towards more low - carbon, climate resilient activities. however, considerable funding gaps remain. public finance will likely be inadequate for this task and there is inevitably a need to draw in private capital. the renewable energy sector for example, requires a total of rm33. 5 billion of funding by 20252, based on the projections provided by the sustainable energy development authority ( seda ) malaysia. there is no ready panacea to the funding issues that we face. we need to understand the root cause to come up with possible solutions. in my view, one of the most critical issues is the mismatch in funding demand and supply ; and information asym