Malaysia's climate adaptation needs up to US$1.1tril by 2050 – SC

Malaysia's climate adaptation needs are estimated to range between US$852 billion and US$1.1 trillion by 2050, highlighting the significant financial requirements to strengthen the country's resilience to climate change, according to Securities Commission Malaysia (SC). The SC chairman, Datuk Mohammad Faiz Azmi, emphasized that climate adaptation is now a critical economic and development imperative, revealing a structural gap in the financial architecture that has not fully recognized these needs.

Faiz highlighted the uneven distribution of consequences, noting that more than half of the Organization of Islamic Cooperation (OIC) member countries are highly vulnerable to climate impacts, with limited capacity to adapt. He pointed out that many adaptation and resilience projects are unbankable due to their long tenors and limited standalone cashflows, creating a "return problem."

Faiz stressed the critical importance of mobilizing private capital, which currently contributes only around US$5 billion annually to adaptation, but has the potential to reach US$50 billion with the right policy support and blended finance structures.

Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.