PETRONAS Partners with Malaysia Forest Fund to Explore High-Quality Nature-Based Solutions Projects

KUALA LUMPUR, 31 May 2023 – PETRONAS and Malaysia Forest Fund (MFF) have signed a Memorandum of Understanding (MoU) to explore and develop high-quality Nature-based Solutions (NBS) projects in Malaysia.

NBS comprises all activities related to the conservation and restoration of natural ecosystems to lower the concentration of greenhouses gases in the atmosphere. It offers immediate, scalable, and cost-effective pathways to reduce net emissions, as well as contributes to climate mitigation and community co-benefits.

The United Nations Intergovernmental Panel on Climate Change (IPCC) in 2019 has identified NBS as capable of achieving 37 per cent of the emissions reductions needed by 2030 to keep the global temperature under 2^oC to meet the objective of the Paris Agreement. Given its importance in addressing the climate and nature crises, the selection of NBS projects must be of high quality with strong environmental integrity drivers and additional co-benefits, assessed and verified by credible framework and international standards.

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 also 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 said, "PETRONAS aims to help unlock opportunities in the Malaysian NBS market to deliver sustainable business value and help protect, conserve and restore the natural environment. The signing of the MoU illustrates PETRONAS' commitment towards achieving its Net Zero Carbon Emissions by 2050 (NZCE 2050) aspiration and promote regenerative Malaysia’s nature and biodiversity ecosystem through partnership and collaboration."

The Ministry of Natural Resources, Environment and Climate Change has established the MFF to enact a financial framework aligned with the United Nations Framework Convention on Climate Change, specifically REDD Plus (Reducing Emissions from Deforestation and forest Degradation in developing countries, and the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks in developing countries). This framework enables the private sector to directly contribute financial resources towards activities focused on conserving, protecting, and sustainably managing forest resources, in addition to supporting other efforts of the state government.

PETRONAS' participation in the REDD Plus initiative also signifies its commitment to conducting and expanding its business in a manner that generates positive contributions to both society and the environment, thereby strengthening PETRONAS’ stance on nature and biodiversity.

As PETRONAS continues its journey towards NZCE 2050, more collaborative efforts and innovative solutions including NBS projects are expected to materialise, further propelling Malaysia towards a greener and more resilient future.