According to him, the proposed legislation will improve the legal framework concerning energy efficiency practices to ensure full participation by various institutions and organisations.

Speaking at the Second Malaysian Banking Conference today, Nik Nazmi said: “(We are) fully committed to finalising and implementing this bill to optimise resource utilisation and minimise the environmental impact of our economic development”.

Nik Nazmi said the act will help Malaysia achieve its aim to cut carbon intensity against gross domestic product (GDP) by 45% by 2030, relative to 2005 levels.

Meanwhile, he added that the Climate Change Bill will be tabled within two years. The act will provide a comprehensive framework for the government, private sector and civil society to take collective action to cut carbon emissions and adapt to climate change.

“We have seen the importance of the Climate Change Act in the UK, where the commitment the British government has made for sustainability has lasted across different governments, prime ministers and political parties,” he said.

Furthermore, the minister also said a policy on cross-border renewable energy (RE) trading will be implemented through the electricity exchange system.

Malaysia lifted its ban on RE trading last month.

The minister said the RE capacity in the electricity supply system is anticipated to reach approximately 70% by 2050.

In order to accomplish these goals, the minister emphasised that Malaysian banks should take the lead in embracing sustainability.

“Our banks must green the finance and finance the green,” Nik Nazmi said.

He said that banks need to adapt to cater to investors and consumers who are increasingly conscious of environmental, social and governance factors in what they invest and buy.

“In what you do or fail to do, what you fund or refuse to fund, you are basically voting on Malaysia’s future and the future of the planet,” he stressed.