DUBAI, Dec 3 — Bank Negara Malaysia (BNM) and the World Bank today announced two key initiatives to enable the financial sector to support nature-positive outcomes in conjunction with the 28th Conference of Parties (COP28) at the United Nations Framework Convention on Climate Change (UNFCCC) here.
These initiatives will facilitate the integration of nature-related considerations into decision-making while supporting financial flows towards nature-based solutions, BNM said in a statement today.
This follows the recommendations outlined in a 2022 report “An Exploration of Nature-related Financial Risks in Malaysia”.
BNM governor Datuk Abdul Rasheed Ghaffour said the partnership recognises the implications of nature-related risks to a megadiverse country like Malaysia.
Meanwhile, World Bank country director for Brunei, Malaysia, the Philippines and Thailand Ndiame Diop said Malaysia aims to develop robust measures to increase finance related to nature, and this sets a good example for countries grappling with nature-related financial and economic risks.
According to BNM, the risk assessment guide will be developed in consultation with the Taskforce on Nature-related Financial Disclosures (TNFD) secretariat.
“The aim is to support Malaysian financial institutions and businesses in identifying and assessing an organisation’s nature-related dependencies, impacts, risks and opportunities.
“This consultation will follow BNM becoming a member of the TNFD forum, a global multidisciplinary consultative group aligned with TNFD’s mission and principle,” the statement said.
BNM and the World Bank will also facilitate the development of innovative financial instruments to support private investments in nature, including enabling regulations to support nature-positive outcomes and piloting new financial structures, the statement said. — Bernama