KUALA LUMPUR, June 28 – PETRONAS, the global energy group, has entered into a strategic partnership with the Malaysia Forest Fund (MFF) through the signing of a Memorandum of Understanding (MoU). The collaboration aims to explore and develop high-quality Nature-based Solutions (NBS) projects in Malaysia, focusing on the conservation and restoration of natural ecosystems to reduce greenhouse gas emissions and contribute to climate mitigation.
NBS encompasses a range of activities that help lower the concentration of greenhouse gases in the atmosphere. Recognized as a key approach by the United Nations Intergovernmental Panel on Climate Change (IPCC), NBS has the potential to achieve a significant portion of the emissions reductions required to meet the objectives of the Paris Agreement. These projects offer immediate, scalable, and cost-effective pathways to combat climate change while also delivering community co-benefits.
The selection of NBS projects must adhere to rigorous environmental standards and possess strong environmental integrity drivers. They should also provide additional co-benefits, assessed and verified through credible frameworks and international standards. PETRONAS and MFF are committed to ensuring the highest quality standards in their NBS initiatives.
The MoU was signed by PETRONAS Vice President & Chief Sustainability Officer, Charlotte Wolff-Bye, and MFF Chief Executive Officer (CEO), Datuk Jeffri Abd Rasid. The signing ceremony was attended by PETRONAS Executive Vice President & CEO of Upstream, Datuk Adif Zulkifli, and the Ministry of Natural Resources, Environment and Climate Change (NRECC) Deputy Secretary General (Energy, Environment, and Climate Change), Dato’ Mohamad Razif Abd Mubin.
Wolff-Bye emphasized PETRONAS’ commitment to achieving its Net Zero Carbon Emissions by 2050 (NZCE 2050) aspiration and its dedication to preserving and restoring Malaysia’s natural environment. The partnership with MFF reflects PETRONAS’ efforts to unlock opportunities in the Malaysian NBS market, delivering sustainable business value while safeguarding nature and biodiversity through collaboration and partnership.
The Ministry of Natural Resources, Environment and Climate Change established the MFF to create a financial framework aligned with the United Nations Framework Convention on Climate Change, specifically the REDD Plus initiative. This framework enables the private sector to contribute directly to activities aimed at conserving, protecting, and sustainably managing forest resources. PETRONAS’ participation in the REDD Plus initiative signifies its commitment to conducting business in an environmentally responsible manner and supports the company’s focus on nature and biodiversity.
As PETRONAS progresses towards its NZCE 2050 goal, the company anticipates further collaborative efforts and innovative solutions, including NBS projects, that will drive Malaysia towards a greener and more resilient future.
