This article first appeared in Forum, The Edge Malaysia Weekly on April 14, 2025 - April 20, 2025

Despite recent apparent setbacks — including the US’ withdrawal from the Paris Agreement and the global volatility caused by President Donald Trump’s “Liberation Day” global tariffs — the need for climate action is stronger than ever.

Climate change remains a clear and present danger to all nations, including Malaysia. Indeed, the recent “State of Southeast Asia Survey 2025”, by the Asean Studies Centre at the ISEAS–Yusof Ishak Institute found that 55.3% of the 2,023 respondents across our region view climate change as its top issue, including 55% from Malaysia.

As an environment minister, this growing consciousness is welcome to me. But it also shows how the crisis is increasingly real to our people. We are responsible for what happens within our borders, therefore Malaysia’s green push must continue.

This is why the various reforms, including the targeting of water and electricity tariffs as well as the planned rationalisation of petrol subsidies, are crucial to both move our economy up the value chain and support decarbonisation.

We must likewise stay the course in terms of our legislative agenda. This includes for our National Climate Change Bill (RUUPIN), which we target to table in parliament in the middle of the year, and our National Adaptation Plan (MyNAP), which we hope to complete in 2026.

The Ministry of Natural Resources and Environmental Sustainability (NRES) has been seeking public feedback on the RUUPIN since last year.

The RUUPIN, broadly, provides Malaysia with a specific legislative framework to enhance our climate change governance at the international and domestic levels. This includes via establishing an independent regulatory entity to carry out operational functions in accordance with our national climate change ambition, enabling related compliance mechanisms for effective implementation of climate measures and emission reduction mechanisms.

We are grateful for the feedback we have received and take the inputs very seriously. What we propose to do here is to address some of the issues that have emerged from what we have been hearing about the RUUPIN draft.

It must be acknowledged that no legislation is ever perfect or can address all contingencies. What the RUUPIN is seeking to do is to facilitate the development of science-based, evidence-driven policies and strategies, allowing the government to make more informed decisions on national climate action.

In our talks with stakeholders, governance and implementation were unsurprisingly of great interest. We would argue that the RUUPIN’s structure promotes a collaborative approach between federal and state governments, supported by clear targets, enforcement mechanisms and a centralised information system.

The bill moreover establishes clear institutional checks through the creation of the National Climate Change Council, chaired by the prime minister and comprising representatives from federal ministries, state governments (including Sabah and Sarawak) and key government agencies to set the national climate policy direction and monitor mitigation and adaptation strategies.

Also, the RUUPIN will establish a centralised Climate Data and Information Platform as a national repository for emissions data, climate-related reporting and carbon trading records, consolidating data from various government entities, ensuring consistency and interoperability. Meanwhile, aggregated emissions and climate data are made publicly accessible in line with international reporting obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and Paris Agreement.

RUUPIN also provides a Climate Change Authority (CCA) to serve as an independent body responsible for implementing and overseeing regulatory mechanisms, including carbon pricing and emissions trading. Its anticipated diverse representation across various sectors will mitigate concerns about centralised authority, as does the provisions which allow for the appointment of external experts to assist with objective advice on climate-related decisions.

Regarding emissions reporting, there were naturally concerns about transparency and how small businesses will be able to comply. An emissions threshold will be introduced and only facilities that reach this threshold will be required to report their emissions. The RUUPIN introduces a robust monitoring, reporting, and verification system designed to ensure accurate tracking of emissions data. The National Carbon Registry and the centralised data platform it provides for will also facilitate the collection, verification, and tracking of emissions-related information.

Meanwhile, RUUPIN mandates that emitters and participants in carbon-pricing mechanisms register and submit emissions reports validated by accredited validation and verification bodies, ensuring transparency and accountability across all sectors, regardless of their size.

As for small businesses, the CCA will be empowered to provide technical support and develop guidelines for compliance. The bill also contains a scheduled economic sector where selected sectors are targeted based on Intergovernmental Panel on Climate Change and UNFCCC recommendations, which will not impact smaller businesses as much.

In terms of enforcement, the bill introduces a comprehensive enforcement structure with clearly defined penalties for non-compliance, for offences such as failing to submit emissions reports, providing false information and obstructing enforcement officers. There are also provisions for compounding offences as well as administrative penalties and expedited resolutions for minor infractions. The CCA will be empowered to conduct investigations, audits and inspections to ensure compliance with the requested legal powers required.

In response to concerns over the transparency of the Climate Change Fund that the RUUPIN provides for, the legislation clearly provides for financial audits and regular reporting to ensure transparent and accountable fund management.

NRES is also aware of calls for stronger protections for carbon sinks and biodiversity. The RUUPIN empowers us to set national adaptation targets and formulate our National Adaptation Plan, which can include considerations for ecosystem preservation and land-use management. It also allows for state governments and local authorities to incorporate such strategies within their sub-national adaptation plans via its provisions for state autonomy and the flexibility of national adaptation targets.

The carbon markets and offsetting mechanism aspects of the bill have likewise drawn much attention. The RUUPIN clearly distinguishes between the Emissions Trading Scheme (Section 29) and voluntary carbon markets (Section 32), allowing both to operate concurrently.

The CCA will oversee both systems and ensure fair participation through clear registration and reporting processes. Additionally, the establishment of a National Carbon Registry will ensure transparent monitoring and management of carbon credits across both markets.

The RUUPIN is also seeking to contribute to the ongoing revival of Malaysia’s federalism under the Madani government by allowing state governments to establish their own emissions reduction and adaptation targets (Section 8), provided these are aligned with national objectives. States can also formulate their own adaptation action plans based on localised climate impact assessments.

As such, both Sabah and Sarawak will retain autonomy over land-use matters, especially in areas related to natural resource management and forest conservation. The flexibility within the RUUPIN framework enables these states to address their unique environmental challenges while contributing to national climate goals.

As noted at the outset, NRES appreciates the many points of feedback on the RUUPIN provided. We see the extensive, even passionate discussion it has generated as a reminder of how crucial it is for Malaysia to get its climate change response right as well as the great expectations of the public.

As the minister responsible, I thank all parties who have approached us on this issue. I pledge to continue to inclusively and comprehensively engage all stakeholders to ensure the RUUPIN we table when parliament next convenes is the best possible draft we can produce, for the people and our nurturing, magnificent country.

We understand that the future of Malaysia and its people is at stake — we will carry out our responsibilities without fear or favour as well as to the best of our abilities and the RUUPIN will be our means to do so.

Nik Nazmi Nik Ahmad is the minister of Natural Resources and Environmental Sustainability

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