Petronas, Malaysia Forest Fund to develop nature-based solutions projects

State-owned energy company Petronas and Malaysia Forest Fund (MFF) have signed a memorandum of understanding (MoU) to explore and develop nature-based solutions (NBS) projects in Malaysia, Petronas announced on May 31.

NBS encompasses activities aimed at conserving and restoring natural ecosystems to reduce greenhouse gas concentrations in the atmosphere. According to Petronas, these projects provide immediate, scalable, and cost-effective pathways to mitigate climate change while delivering additional community co-benefits.

Petronas said that the collaboration demonstrates its dedication to achieving its Net Zero Carbon Emissions by 2050 (NZCE 2050) aspiration and promoting the regenerative nature and biodiversity ecosystem in Malaysia through partnerships and collaboration.

Malaysia’s ministry of natural resources, environment, and climate change has established the MFF to create a financial framework aligned with the United Nations Framework Convention on Climate Change, particularly REDD Plus (Reducing Emissions from Deforestation and forest Degradation). This framework allows the private sector to contribute financial resources to activities focused on conserving, protecting, and sustainably managing forest resources.