Kuala Lumpur: The Malaysia Forest Fund (MFF) has identified substantial opportunities in utilizing green bonds and green financing available in Hong Kong to bolster its forest conservation efforts and develop the carbon market in Malaysia. MFF’s chief executive officer, Datuk Shah Redza Hussein, emphasized Malaysia’s focus on green finance initiatives that align with Hong Kong’s environmental, social, and governance (ESG) strategy.
According to BERNAMA News Agency, MFF plays a crucial role in sustainable finance by mobilizing forest conservation funds through innovative instruments such as carbon credits. Malaysia is in the process of developing national standards for Forest Carbon Offset (FCO) to ensure transparency and credibility in ESG investments, aligning with Hong Kong’s efforts to enhance corporate sustainability reporting and sustainable financing.
MFF, an agency under the Ministry of Natural Resources and Environmental Sustainability (NRES), has been appointed as the National Focal Point for issues related to Article 6.8 of the Paris Agreement. Shah Redza noted that Malaysia could benefit from the Green and Sustainable Finance Grant Scheme launched in Hong Kong last April, which has supported over 560 instruments with total underlying debt issuances valued at HK$1.2 trillion.
He pointed out that this presents an opportunity for Malaysia to issue green bonds supported by local forest conservation projects and carbon credits, attracting more ESG investments into the country. Additionally, he mentioned that Hong Kong’s carbon trading platforms, like the Hong Kong Exchange’s Core Climate, could serve as channels for Malaysia to market carbon credits generated through forest conservation initiatives.
Shah Redza highlighted that Malaysia could also take inspiration from Hong Kong’s Green and Sustainable Fintech Proof-of-Concept Financing Scheme, which supports green financial technology projects. He suggested that MFF could collaborate with financial institutions and research bodies to develop innovative financial solutions that support forest conservation and carbon trading.
Such collaboration between Malaysia and Hong Kong in green finance, he stated, would not only strengthen forest conservation efforts but also increase Malaysia’s competitiveness in the global carbon market. Through these initiatives, MFF could expedite the implementation of green projects and ensure Malaysia continues to play a leading role in global climate action.
In the meantime, Joseph H.L. Chan, Hong Kong’s Under Secretary for Financial Services and the Treasury, emphasized in his opening speech at the conference the urgency of addressing climate and sustainability issues. He also reiterated Hong Kong’s commitment to becoming a leading green finance hub in Asia by developing various financial mechanisms to support ESG initiatives.