The urgency of the climate crisis demands resolute action and a just transition provides a framework for action that traverses borders and sectors.
THE Just Transition concept will be rolled out within the realm of climate action and equitable development, in line with the Madani Economy framework.
This approach holds the promise of harmonising these issues as the nation grapples with the entwined challenges of achieving a high-income nation status while managing its natural heritage as well as safeguarding the rakyat.
The Economic Outlook 2024 Report said it would be imperative for individuals, governments, corporations and civil societies to unite in shaping Malaysia’s development trajectory.
The urgency of the climate crisis demands resolute action and a just transition provides a framework for action that traverses borders and sectors.
It demands a collective commitment from local communities to global platforms, encapsulating a future where social fairness and environmental sustainability intertwine seamlessly.
The report said that guided by the principles of Just Transition and the Madani Economy framework, Malaysia will chart a development trajectory leading to a sustainable future that is comprehensive and environmentally conscious, through the equilibrium between economic growth, climate mitigation and adaptation as well as social justice.
The concept of Just Transitions underscores the essential interplay surrounding nation building, climate mitigation and adaptation as well as social justice.
In the case of Malaysia, a nation blessed with social unity and well-being, ecological diversity and abundance as well as progressive economic and technological advancements, the concept of Just Transitions forge a pathway towards a sustainable future that leaves no one behind.
The climatic events and geopolitical shifts have been forcing nations to respond diversely in order to manage resource availability and avoid falling into a recession.As the world reacts to these challenges, unilateral actions are being undertaken, translating into increasing economic pressures globally.
The European Union (EU) has just implemented new trade regulations, the Carbon Border Adjustment Mechanism and EU Deforestation-free Regulation, which will affect many products and businesses coming into the EU.
Other countries are also looking into introducing similar regulations, which further highlight the need for readiness by Malaysian industries to prepare for climate transition.
Many multinational corporations are bound by the home-country environmental, social and governance (ESG) laws and regulations, obligating compliance across the entire value chain. International investors are also increasingly looking to support strong ESG portfolios.
Due to these emerging trends, many nations are pushing to promote sustainable and ethical governance in policies and implementations, said the report.
Equally pivotal are environmental justice and equity, especially in balancing the complexity of reducing environmental impacts with mitigating adverse environmental consequences on society.
The demand for energy, water and food further accentuates the significance of having a just transition. Vulnerable communities are often the most susceptible to disruptions of these vital resources. Deliberate planning and collective endeavours are pivotal in building resilience to benefit all segments of society, while ensuring continuous availability of these resources.
