NCGS Summaries

NCGS 2024 Masterclasses & Workshops Summaries

DAY 2: MASTERCLASS: BOARDROOM CLIMATE ESSENTIALS
Philippe Joubert, Founder and CEO of Earth on Board

The masterclass led by Philippe Joubert heavily emphasizes the need for corporations to integrate sustainability into their core strategies and adapt to the accelerating pace of global change.

The session explored how businesses can not only survive but thrive by recognizing environmental limits and embrace innovative practices that harmonize profitability with environmental stewardship.

Philippe highlighted how humanity has long taken nature for granted, citing the example of the widespread killing of bees to improve agricultural businesses. This has resulted in significant disruptions to the food chain and biodiversity loss, which could have far-reaching consequences for both businesses and human livelihoods.

He further noted that the planet’s ecological boundaries are being reached or even surpassed, and current accounting systems have failed to reflect the true environmental costs, as we are effectively 'counterfeiting', declaring legal but false profit by not accounting for our environmental impacts.

Philippe also pointed out that our daily lives are driven by a deep dependency (“addiction”) on carbon. He suggested that the first step in addressing this challenge is to recognize this addiction, emphasizing that businesses must evolve to become part of the solution to sustainability.

Elucidating the previous points, Philippe shared his
personal experiences of how sustainability became a
central part of his business strategy, and advocated for using sustainability as a key motivator in mobilizing
stakeholders within an organization.

He highlighted that sustainability should not be an
afterthought but a fundamental pillar of strategic
planning, and advocated for businesses to shift from a
shareholder-primacy model to a stakeholder-centric
approach.

He also emphasized the critical need for competent,
sustainability-proficient boards to take the lead in driving sustainability within the organization. Relevant
sustainable reporting frameworks should also move
beyond mere compliance to foster trust and transparency among stakeholders ecosystem.

On a positive note, he observed a growing momentum toward sustainable business models, citing the electrification of the mobility sector, and the rapid transition in Europe’s energy sector. On resources side, the increasing demand from young talents for sustainable practices is a clear trend.

Noting the significance of financial institutions in driving sustainability initiatives, Philippe called on the banking industry to recognise the urgency of climate action and take the necessary concrete steps to move from declarations to actions.

In addition to the transformation of business models,
Philippe urged businesses to build resilience by managing both the physical and regulatory risks posed by recent climate-related disruptions, such as water scarcity and extreme weather.

Businesses should identify strategic weak points for
building resilience and adopting scenario-based planning to manage unpredictable yet inevitable shocks.

In conclusion, the masterclass emphasized that business-asusual is no longer viable. Companies that fail to adapt to the new realities of climate change and environmental degradation will risk becoming obsolete.

The future belongs to businesses that embrace
sustainability, foster resilience, and contribute to the wellbeing of both society and the planet. Achieving this requires a profound shift in business models, governance, and long-term planning.

QUOTES:
“....This is a work for the industry as a whole, not for one
player . I am not talking about one player specifically. I am
talking about the sector that has to move fast.”

“....The only thing I know is that there is no winner alone
but only winning ecosystems.”

“....Reminding the board of their duty to act in the interest
of the company not in the interest of the sole
shareholders.”

“....The key question is not only to decarbonise the current
activity but to design activity with a purpose consistent
with planet and society boundaries.”

“....We are not paying the full cost of our operation...We
are counterfeiter producing legal but fake results and
sending the bill to the next generations.”

DAY 2: MASTERCLASS: DECARBONISING SUPPLY CHAINS: LESSONS FROM A SUPPLY CHAIN
INNOVATION

Dr. Shardul Phadnis, Associate Professor (II) of Operations and Supply Chain Management, Asia School of Business

Dr. Shardul highlighted the increasing frequency of
climate-related disasters such as record-breaking
temperatures and devastating wildfires. These "once-in-a century" events are rapidly becoming the norm.

Despite numerous corporate commitments to achieve net zero emissions, a considerable gap remains between pledges and actual implementation. Only a small percentage of companies are meeting the bare minimum required under the Paris Agreement; most companies are not even meeting the “starting line criteria” of tracking carbon footprint, reporting emissions, immediately cutting emissions, and creating credible plans for using carbon offsets.

Uncertainties related to economic risks, technological
costs, and fluctuating market conditions hinder progress toward net-zero. To address these uncertainties, Dr. Shardul advocated for scenario planning as a critical strategic tool.

Unlike traditional forecasting, which relies on historical
data, scenario planning involves envisioning multiple
potential futures and developing adaptable strategies to navigate them. This approach allows organizations to better prepare for the complexities and challenges of transitioning to net-zero emissions.

Instead of predicting specific outcomes, scenario planning is designed to educate and prepare organizations for a range of possibilities and learn about the changing business environment, offering valuable insights to guide strategic choices. Scenarios are evaluated over time, further strengthening their role as a proactive learning tool rather than a prediction method.

Dr. Shardul shared a compelling case study on UPS, which successfully utilized scenario planning in 1997 to adapt to the emerging e-commerce market. By developing multiple scenarios—including the rise of peer-to-peer shipping models—UPS strategically positioned itself to respond to evolving demands. This foresight enabled the company to enhance its services and maintain a competitive advantage over rivals like FedEx.

Dr. Shardul noted that scenario planning was a solution for the long term, but there are actions one can take with confidence in the short term. He cited the example of The Lost Food Project (TLFP) as a proven Malaysian solution for decarbonising supply chains.

With 34% of global greenhouse gas (GHG) emissions
originating from the food system and 31% of food
produced going to waste, about 10% of the emissions
belong entirely to food waste. TLFP aims to reduce food waste and curb greenhouse gas emissions by redistributing edible, nutritious food to those in need.

In 2023 alone, TLFP successfully redistributed edible food to over 80 charities, rescuing 2.3 million kilograms of food. It has prevented more than 20 million kilograms of CO₂ equivalent emissions since its inception in 2016.

Despite its success, the project faces significant challenges, particularly in securing operational funding. Dr. Shardul called for greater government support, suggesting tax incentives for companies donating surplus food and exploring the potential of using carbon credits as an innovative funding mechanism to scale the project’s impact. With scope 3 emissions accounting for 75% of all greenhouse gas emissions, Dr. Shardul emphasized the importance of taking an end-to-end supply chain perspective when addressing decarbonization. He called on companies to actively engage with their supply chains,
fostering sustainability through incentives and
collaboration.

Dr. Shardul’s insights urged stakeholders to reimagine
their approach to climate action, prioritizing scenario
planning and supply chain decarbonization as essential elements of a comprehensive climate strategy. He encouraged governments and corporations alike to invest in long-term solutions, ensuring that projects like The Lost Food Project continue to thrive and drive meaningful environmental change.

QUOTES:

“We know that the world is on fire, literally. We see that in
the news, we see that in statistics. And companies have
made pledges to do something about it, and now they are
going back, reneging on their promises, and most
companies are not doing anything meaningful.”

“We are not doing enough for net zero because we think
we need to have complete answers to the difficult
questions about the transition mired in deep uncertainty,
ambiguity, and complexity. We are not going to have
those, but we can start taking smaller steps. We have to
start thinking about how we can take action now while
building strategic flexibility to change course as needed.”

DAY 2: MASTERCLASS - UNRAVELLING THE GLOBAL CLIMATE LITIGATION LANDSCAPE

Elizabeth Wu, Legal Consultant, Energy Systems, Asia, ClientEarth / Global Fellow, Centre for International Law, National University of Singapore
Jonathan White, Lawyer, Accountable Corporations, ClientEarth
Lea Main-Klingst , Lawyer, Fundamental Rights, ClientEarth
Kiu Jia Yaw, Chairman, Environment & Climate Change Sub-Committee, Malaysian Bar Council

Opening remarks:
Tan Sri Tommy Thomas, Former Attorney General of Malaysia
Tuan Haji Mohamad Ezri bin Abdul Wahab, President, Malaysian Bar Council

Closing remarks:
To’ Puan Janet Looi, Senior Partner, Head of Corporate and Co- Head, ESG Group of Skrine

This masterclass convened a distinguished panel of experts to explore the escalating role of climate litigation in addressing global climate challenges, emphasizing its significance for governance reforms and human rights.

Tuan Haji Mohamad Ezri set the stage by emphasizing the profound threat climate change poses to human rights, stressing that climate litigation is essential in holding governments and corporations accountable for their failure to mitigate its impacts.

He highlighted the significant global rise in climate
litigation, positioning it as a crucial area of law that shapes policy and drives changes in corporate practices.

Tan Sri Tommy Thomas stressed the global reach and
borderless nature of climate change impacts, calling for ambitious climate policies focused on people and planet welfare.

He referenced landmark climate litigation cases such as the European Court of Human Rights' ruling on
Switzerland’s failure to adequately quantify national
emissions and the United Nations Human Rights
Committee’s determination that Australia violated human rights due to its lack of climate action.

He urged the legal profession to guide corporate clients on their legal liabilities, as both actions and omissions have serious implications for climate justice.

Elizabeth Wu began the panel discussion by introducing the panellists and their perspectives on the global climate litigation landscape.

Jonathan White elaborated on the broad scope of climate litigation, noting its involvement in diverse areas, from project permits to employment laws.

He emphasized the pivotal role of human rights laws in
supporting these cases, citing examples such as
Milieudefensie v. Royal Dutch Shell, which imposed a tort law duty of care to reduce carbon emissions, and
FossielVrij NL v. KLM, which challenged greenwashing in advertising.

These legal precedents, he argued, demonstrate how
litigation can push corporations to implement more
genuine sustainability practices.

Lea Main-Klingst shifted the focus to international climate litigation, highlighting several advisory opinions seeking clarifications from international courts on states’ obligations to address climate change. She emphasized that states must act in accordance with their common but differentiated responsibilities and respective capabilities,pointing out the connection to equity and climate justice principles.

Lea further stressed the importance of science-backed evidence in holding states accountable for failing to protect human rights and mitigate climate impacts.

Kiu Jia Yaw then provided insights into Malaysia’s climate litigation landscape, presenting it as a platform for resolving societal conflicts and advocating for a more transparent and accessible civic space for addressing climate disputes. He also cautioned that litigation, though vital, is not a panacea but rather a tool for societal change.

Citing a case in India as an example, he pointed out the delicate balance between national development and environmental protection. Moreover, he discussed the need for constitutional reforms and legislative updates to support climate action and prevent environmental harm in Malaysia.

Elizabeth Wu then explored with Lea the implications of international tribunal developments on state
responsibilities, Lea noted that states are required to
conduct relevant environmental impact assessments,
which is likely to have implications for corporate actors.

Jonathan went on to explain how the growing ambition and heightened scrutiny in international climate litigation often triggers mirroring reactions from companies, prompting them to align their actions and analyses accordingly.

Meanwhile, Jia Yaw, tailoring his remarks to Malaysia,
emphasized the guiding role of regulators in responding to climate risks.

The session concluded with remarks from To’ Puan Janet Looi, who called for companies to align their strategies with climate goals and ensure data integrity. She urged legal professionals to hold corporations accountable for their net-zero commitments, advocating for greater diversity and boldness in corporate governance on climate related
issues.

The masterclass thus highlighted that climate litigation is no longer just a legal tool but a vital force for systemic change in governance, corporate behavior, and human rights protection.

QUOTES

“I believe all of us gathered here today do so with a
profound awareness that climate change is not a distant
threat, it’s here, and its impacts are undeniable.”

Tuan Haji Mohamad Ezri bin Abdul Wahab,
President, Malaysian Bar Council

“Strong, ambitious climate policy delivered by
governments which recognized the need to place the
welfare of planet and people above short term profits, is
the best antidote to litigation brought against
governments.”

Tan Sri Tommy Thomas,
Former Attorney General of Malaysia

“In the same way that we have litigation and courts and
regulators acting on other issues that are challenging
society, we also have them acting on climate change and
the challenges of climate change.”

Jonathan White,
Lawyer, Accountable Corporations, ClientEarth

“....a point that I want to highlight is that all these
proceedings show how actors who are often not at the
forefront of or even excluded from policy making,
legislative decisions, so on and so forth, are now bringing
these claims or initiating these proceedings. Some of these
actors are also amongst those most impacted by climate
change. They are using the law as a tool to fight for their
rights, to protect their rights and also the rights of future
generations.”

Lea Main-Klingst, Lawyer,
Fundamental Rights, ClientEarth

“To achieve the sustainable development goals and to do
sustainable development well, we must make sure that our
courts are accessible and effective. [Making sure that] They
are efficient institutions for resolving differences between
decision makers and those who bear rights.”

Kiu Jia Yaw,
Chairman, Environment & Climate Change Sub-
Committee, Malaysian Bar Council

“How do developments in international tribunal
jurisprudence affect the way that states have to act as a
matter of the kind of legislations or policies they have to
propound? And then, relatedly, how should corporates in
countries generally have to respond to that?”

Elizabeth Wu,
Legal Consultant, Energy Systems, Asia, ClientEarth /
Global Fellow, Centre for International Law,
National University of Singapore

“If directors do not proactively account for and mitigate
against climate related risks, and are not informed in their
board decisions on these matters, they risk exposing
themselves to statutory liability and common law action.”

To’ Puan Janet Looi,
Senior Partner, Head of Corporate and Co- Head, ESG Group of Skrine

DAY 2: WORKSHOP I - VOLUNTARY CARBON MARKETS
Dr. Wei-nee Chen, Head of Carbon Market, Bursa Malaysia

This workshop provided an in-depth exploration of
carbon credits, Renewable Energy Certificates (RECs),
and the evolving role of carbon markets in Malaysia. Dr. Wei-nee Chen highlighted the country’s increasing
involvement in voluntary carbon markets (VCM) and
renewable energy initiatives, shedding light on the
opportunities and implications for businesses engaged in carbon trading.

Carbon credits, generated from projects that reduce, avoid, or remove greenhouse gas emissions, are validated by third parties to ensure credibility, with each credit representing 1 tonne of CO₂ equivalent emissions.

These credits are typically purchased by companies that struggle to meet emission targets and can later be retired for inclusion in sustainability reports. Companies can also trade these credits through the Bursa Carbon Exchange (BCX).

RECs function similarly to carbon credits but are tied
exclusively to renewable energy projects, representing 1 MWh of electricity and offering an additional avenue for businesses to meet sustainability goals.

Malaysia’s creation of a VCM, rather than immediate
carbon pricing, was driven by political complexities,
allowing for smoother implementation of future
compliance mechanisms.

Despite current low liquidity due to limited awareness,
Malaysian investors have shown significant interest in
carbon projects, signaling the market’s potential to
facilitate the transition away from fossil fuels.

Dr. Chen further elaborated on compliance mechanisms, distinguishing between carbon taxes and Emissions Trading Schemes (ETS). Carbon taxes levy charges on companies emitting beyond a specified threshold, while ETS operates on a cap-and-trade model, where companies that exceed their allowances must purchase extra credits from those emitting below their limits.

Malaysia is yet to decide on which mechanism to adopt, and Dr. Chen encouraged participants to stay informed and actively contribute feedback to shape future policies.

She also provided an update on the Bursa Carbon
Exchange (BCX), which aims to create the world’s first
Syariah-compliant carbon exchange. Currently accepting credits from Verra, BCX plans to integrate credits from the Gold Standard by year-end and continues to expand its offerings for RECs using I-REC standards.

In conclusion, the workshop emphasized the pivotal role carbon markets and RECs play in accelerating Malaysia’s transition towards a low-carbon economy. Businesses are encouraged to engage actively in these markets, stay informed about evolving compliance mechanisms, and provide feedback to the government as Malaysia shapes its
path forward.

QUOTES:
“....up to 2050 our fossil fuel industries would have to start
phasing out and we can't be replacing a vacuum. Therefore
this carbon project is intended to replace that and help us
to transit to a less fossil fuel intensive sector.”

“….the government is going to make a decision between
carbon tax and emissions trading scheme, and it is
important that you are well informed so you can provide
your feedback to the government.”

DAY 2: WORKSHOP II: NATIONAL CLIMATE RISK DASHBOARD
Mike Mathias, Former Big-4 Partner and International Banker
Jasim Puthucheary, COO, E-Solutions and Gov-Tech Specialist, Scicom MSC
Lt. Kol (PA) Mohd Syukri bin Madnor, Chief of Secretariat and Policy Planning and Coordination Division, Malaysia Civil Defence Force

A comprehensive examination of the development and
significance of the National Climate Risk Dashboard in
Malaysia was presented in this workshop, emphasizing the imperative need for accurate climate data, multistakeholder collaboration, and the integration of
innovative technologies to enhance disaster management and prevention.

Lt. Kol (PA) Mohd Syukri initiated the discussion by
highlighting the pressing climate risks facing Malaysia,
where a projected 1.5°C temperature rise by 2050 will
significantly exacerbate the frequency and severity of
climate-related disasters such as floods, landslides, coastal erosion and droughts. Key states including Johor, Pahang, Selangor, and Perak, are expected to be most vulnerable to these disruptions. By 2030, nearly 25% of Malaysia’s population may be potentially displaced due to climate change.

In this context, Lt. Kol Mohd Syukri emphasized the
importance of a National Climate Risk Dashboard to raise public awareness and improve preparedness by providing accurate and real-time data crucial for disaster response.

He advocated for fostering multi-stakeholder partnerships, enhancing knowledge-sharing and capacity building, mobilizing resources, and adopting community-led approaches to effectively manage climate risks.

Mike Mathias expanded on the practical implementation of the National Climate Risk Dashboard, designed as an open-source, non-profit platform akin to Wikipedia. The dashboard aggregates data from a diverse range of contributors—including government agencies, private sectors, and community-based stations—to deliver clear, real-time visual representations of climate risks across Malaysia.

The goal of the dashboard is to empower individuals and organizations with the information they need to make informed decisions regarding disaster preparedness and climate resilience.

Mike also announced the plan to install 1,000 weather
stations across Malaysia, which will provide raw, up-to date data while simultaneously engaging local
communities in climate risk education and awareness.

Building on this, Jasim Puthucheary stressed the pivotal role of data availability in ensuring the effectiveness of the National Climate Risk Dashboard, while addressing the challenges in acquiring timely and actionable data. He introduced cutting-edge technologies such as remote sensing, satellite data collection, and the Decentralized Physical Infrastructure Network (DePIN) utilizing
blockchain technology, which hold the potential to
significantly enhance the dashboard’s capabilities.

Jasim also pointed out the importance of transparency in carbon credit systems, suggesting a shift towards focusing on actual reductions (debits) rather than future promises (credits), facilitated by improved data availability.

The session concluded with a consensus on the critical importance of data availability in advancing the National Climate Risk Dashboard’s mission to strengthen Malaysia's climate resilience.

The speakers highlighted the need for multi-stakeholder collaboration, innovative data collection technologies, and transparent climate risk reporting mechanisms to safeguard communities and foster a proactive response to the growing threats of climate change in Malaysia.

QUOTES:
“The mission is to improve the resilience of Malaysia by
sharing relevant climate data to the entire Malaysian
population at no cost, with the objective that each
individual can make up his or her own mind with data in
an informed way as to how they want to respond to
climate issues.”

Mike Mathias,
Former Big-4 Partner and International Banker
“In civil defence, when we respond to disasters - we need
very accurate data -live data streaming- that could help us
in defining what kind of strategy that we can provide or
what kind of distribution aid we can provide to save the
affected members of disasters.”

Lt. Kol (PA) Mohd Syukri bin Madnor,
Chief of Secretariat and Policy Planning and
Coordination Division, Malaysia Civil Defence Force
“When you're tracking progress on any initiative, we need
data to prove or disprove where we stand and what we
need to do to close that gap.”

Jasim Puthucheary,
COO, E-Solutions and Gov-Tech Specialist,
Scicom MSC

DAY 2: WORKSHOP III: VALUE CHAIN DECARBONISATION THROUGH SUPPLIER ENGAGEMENT
PROGRAM AND INTERNAL CARBON PRICING
Prannoy Chowdhury, Associate Director, The Carbon Trust, Singapore

Prannoy commenced the workshop by introducing
Carbon Trust's work of supporting over 3,000
organizations in their journey toward Net Zero.

He provided a brief overview of greenhouse gas emissions, with a pronounced focus on Scope 3, particularly upstream emissions from “purchased goods and services” and “capital goods,” which often represent the largest share of upstream emissions.

Consequently, Prannoy emphasized that effective supplier engagement is an indispensable element in accurately quantifying and managing Scope 3 emissions, particularly in improving the clarity of decarbonization pathways within supply chains. This engagement process involves 3 key steps: identifying key suppliers contributing the most to emissions, collecting data, and subsequently reducing
emissions.

He elaborated on how organizations should prioritize
suppliers through materiality and qualitative assessments, utilizing spend-based data and Pareto analysis.

The next step involves evaluating the sustainability
maturity and “ability to influence” of the suppliers, to help determine the nature of data collection and engagement method, which can range from gathering existing product carbon footprint (PCF) data to providing assistance to the suppliers in their PCF measurement efforts.

Prannoy emphasized the importance of ensuring data
accuracy and representativeness while cautioning that rebaselining Scope 3 emissions targets may be necessary if data inconsistencies exceed 5%.

Finally, supplier engagement and collaboration is crucial in achieving shared understanding on decarbonization objectives, with the engagement methods tailored according to nature of relationship and suppliers’ carbon impact.

The session then shifted to Internal Carbon Pricing (ICP), presented as a proactive and voluntary financial instrument for companies to internalize the economic costs of their greenhouse gas emissions.

Prannoy outlined how ICP can serve as a critical tool in making informed business decisions especially regarding investment and expenditure, assessing climate-related risks, and preparing for evolving carbon-price related regulations.

He introduced various ICP models, including shadow
pricing, implicit carbon pricing, internal trading systems, and internal carbon fees. He stressed the need for a flexible and regularly updated approach to ICP to ensure alignment with organizational goals. He also explained that ICP must remain simple and adaptable to ensure understanding across departments, thereby enhancing its
efficacy in driving decarbonization strategies.

In conclusion, the workshop highlighted the significance of supplier engagement and ICP as fundamental pillars in managing Scope 3 emissions and advancing corporate sustainability initiatives.

Organizations should adopt a methodical approach to engaging suppliers and ensure that emissions data is accurate and actionable. The introduction of ICP is
recommended as it supports better business decision making and aligns with long-term decarbonization efforts. These strategies are essential in meeting future regulatory demands and ensuring a successful transition to a Net Zero economy.

QUOTES:

“If we empower people with the supplier engagement
program tools, they will have much more clarity about the
supply chain and where the emissions are coming from.
Once that clarity is there, the decarbonization together
with the suppliers can be implemented as well.”

“It will be a good kind of assessment - how good your
supplier is doing, what initiative they are putting in to
decarbonize their own Scope 1, 2 and 3, as well as their
product emissions.”

“[Internal Carbon Pricing] will help you to reduce your
future risk, and at the same time it will help you seize the
opportunity as well. So in terms of future risk, addressing
it will help you stay ahead of the competition.”

DAY 2: WORKSHOP IV: LESSONS FROM A NEGATIVE CARBON EMISSIONS COUNTRY
Professor Thakur S Powdyel, Former Minister of Education, Royal Government of Bhutan

Professor Powdyel shared Bhutan's remarkable journey in environmental conservation and sustainable development, highlighting its rare distinction as the first carbon-negative nation in the world. He attributed this success to three key "blessings" that he terms the Triple Gem of Virtuous Alignment – the Natural, the Spiritual, and the Secular – that forms the basis of the country’s vision of holistic development, popularly known as Gross National Happiness (GNH).

Though a small country with less than one million people, Bhutan is a rich country in terms of its natural
endowments. Bhutan is one of the 10 biodiversity hotspots in the world and is home to some of the rarest of floral and faunal species spread across the country’s dense natural environment. The Constitution of the Kingdom of Bhutan stipulates that at least 60% of the country must remain under forest-cover in perpetuity. Today, nearly 70% of the country is forested, with these forests absorbing six times more carbon dioxide than the nation produces.

The country’s abundant water resources support the
production of clean hydropower energy that forms the
biggest source of revenue needed for development. For Bhutan and the Bhutanese, the natural environment isn’t something ‘out there’ waiting to be exploited or abused at will by the humans. Nature is for the Bhutanese a sacred home of deities and spirits and every object of Nature is invested with life and power. There is, therefore, a deeply respectful mutual relationship between the humans and Mother Nature.

Bhutan is home to some of the oldest spiritual traditions of the world with Buddhism being the State religion. Both Buddhism and Hinduism hold Mother Nature in deep reverence and these deep faiths provide a natural ally to the country’s conservation objectives. These spiritual connections shape the Bhutanese psyche and the society in which the citizens believe that by protecting Nature, they are safeguarding themselves.

The Kingdom of Bhutan has been especially fortunate in having an unbroken lineage of most enlightened and compassionate kings to provide an environment of stability, peace, and progress through the generations. The institution of Monarchy has been instrumental in
safeguarding Bhutan’s sovereignty, independence and
well-being with each successive monarch being a
passionate champion of the country’s natural
environment.

Conservation of the natural environment is one of thefour cardinal pillars of the country’s holistic development vision of Gross National Happiness, and with strong constitutional stipulations regarding the country’s natural environment, each citizen is supposed to be a custodian of the same, by right and responsibility.

Professor Powdyel also highlighted some other important policies and practices that support the well-being of the country’s natural environment, including declaration of 51% of the land area to be under parks and protected areas including biological corridors, establishment of the Bhutan Trust Fund for Environmental Conservation, introduction of integrated soil fertility and pest management and reduction of chemicals; confining manufacturing and pollution-prone industries to designated areas; instituting requirement of environmental clearance for projects, including road construction; establishment of Bhutan for Life fund to finance parks and protected areas; enforcing high-value, low-volume tourism policy to reduce potential negative pressure on the fragile ecosystem and precious culture.

Further, every 2nd June is observed as the Social Forestry Day on which thousands of tree-saplings are planted across the country coinciding with the Coronation Day of His Majesty Jigme Singye Wangchuck, a rare champion of environmental sustainability. As well, Bhutan earned a place in the Guinness Book of World Records recently for planting the highest number of saplings in one hour.

His Majesty Jigme Khesar Namgyel Wangchuck has
initiated a flagship programme called A Mission Fruit
Trees under which varieties of fruit saplings are distributed free of cost to all households in the country to support food self-sufficiency objectives as well as to help advance the country’s environmental conservation efforts. The annual Royal Bhutan Flower Exhibition, also a pet-project of His Majesty the King, has generated growing interest in floriculture among the citizens often combining personal hobby with income.

Professor Powdyel reflected on how nations like Malaysia could also harness their unique strengths, such as cultural diversity and a strong work ethic and the wisdom of the 2000-year old Sejahtera world-view to achieve similar sustainability goals. He highlighted the role of education in Bhutan, where the development philosophy of Gross National Happiness is woven into the national curriculum, implemented through the Green Schools restorative education model.

In conclusion, Professor Powdyel emphasized the
importance of drawing upon a nation’s unique resources and values to foster sustainability. By blending spiritual beliefs, strong leadership, and education, Bhutan has set an example for holistic, sustainable carbon-negative development. He encouraged other nations to integrate environmental stewardship into their policies and education systems, focusing on future generations and the planet’s well-being.

QUOTES:

“Life is precious. Life is sacred. This belief helps in shaping the Bhutanese psyche that naturally protects nature and the environment."

”We have made a commitment to ourselves and to the succeeding generations of our Bhutanese people to remain at least carbon neutral for all times to come."

"....every nation needs its own North Star, its own dream, its own goals. For Bhutan, the big North Star is the vision of Gross National Happiness

DAY 2: WORKSHOP V: (BIODIVERSITY) NATURE PLEDGE
Dr. Alizan Mahadi, Senior Economist, United Nations Development Programme (UNDP)

Dr. Alizan Mahadi delved into the global biodiversity
agenda, spotlighting its critical intersection with national development and the urgent need for action. By centering the conversation around the United Nations Development Programme (UNDP)'s efforts in Malaysia, Singapore, and Brunei, he emphasizes the role of nature-based solutions in achieving decarbonization, along with the systemic shifts
required to elevate biodiversity to the forefront of policy and economic discussions.

Dr. Alizan began by drawing attention to the disparity
between biodiversity and climate change in terms of both public attention and funding, despite humanity's reliance on biodiversity for essential ecosystem services. He introduced the Kunming-Montreal Global Biodiversity Framework, which outlines four long-term goals and 23 measurable targets to be attained by 2030.

Transitioning to the Intergovernmental Panel on Climate Change (IPCC) report, Dr. Alizan illustrated the pivotal role nature-based solutions play in supplementing energy transition efforts, pointing out that the latter alone has limits in decarbonization potential.

He noted that while Malaysia contributes only 0.8% of
global emissions, its emissions per capita remain high, and the nation could leverage its rich biodiversity to further reduce emissions. He further explained that Malaysia’s nature-based solutions could cut domestic emissions by 10%, potentially generating $4 billion revenue opportunity from carbon credits.

Subsequently, Dr. Alizan introduced UNDP’s Nature
Pledge 2030, which highlighted three transformative
pillars central to putting nature in the heart of
development: a global value shift, an economic and
financial shift, and a shift in policy and practice.

He emphasized that a global value shift requires a more integrated approach, citing UNDP’s integrated landscape management project for sustainable food systems, land use and restoration (FOLUR) in Sabah.

Regarding the economic and financial shift, Dr. Alizan
highlighted the vast imbalance between nature-positive and nature-negative financing, with the latter amounting approximately 35 times larger than the former. He argued that redirecting even a fraction of these funds towards nature-based solutions via protection of nature, sustainable land management, and restoration, could result in substantial gains.

He also commended Malaysia’s Ecological Fiscal Transfer (EFT) program as a positive step towards advancing biodiversity conservation, while simultaneously highlighting the insufficiency of current funding to meet biodiversity targets.

Expanding on the previous point, Dr. Alizan pivoted to
the necessity of private sector investment, noting the
inherent challenges in attracting private funding to
biodiversity projects due to the perceived high risks, lack of immediate profitability, and long investment horizons.

He called for innovative financial mechanisms, particularly blended finance, as a means to incentivize private sector participation especially since Malaysia is lagging behind its regional counterparts in this regard.

In concluding the session, Dr. Alizan emphasized that
Malaysia must embrace more sophisticated mechanisms for biodiversity protection and sustainable land management.

He emphasized the need for long-term financial horizons and called for increased investment from both public and private sectors, facilitated through blended finance structures.

QUOTES:

“The idea is how can we turn around the money that is
used mostly for financing tax to nature and mobilizing it
for positive impacts in nature.”

“We already have the nature, we just need to protect it.”

DAY 2: WORKSHOP VI: (BIODIVERSITY) MANAGING HUMAN WILDLIFE CONFLICT
Datuk Dr. John Payne, CEO, Bringing Back Our Rare Animals (BORA)

Focusing on the pressing challenges of wildlife
management in Malaysia, Datuk Dr. John Payne centered his workshop on rethinking traditional paradigms by moving away from reactive measures and economically driven motivations towards a more holistic, forward looking strategy valuing wildlife and ecosystems on their own merits.

Datuk Dr. John Payne, drawing from his extensive
experience, reflected on the transformative changes he has witnessed in wildlife conservation practices.

He emphasized the need for a paradigm shift when it
comes to wildlife management, rejecting the narrow view where wildlife conservation should only serve human welfare or economic interests.

He argued for a deeper conceptual change in how
humanity perceives and manages wildlife, urging society to adopt a more proactive and ethically responsible stance.

One of the primary examples he discussed was the
management of elephants in Malaysia. Dr. Payne
highlighted the country's no-kill policy and the innovative yet flawed strategy of using electric fencing to prevent elephants from entering oil palm plantations.

He stressed the elephants’ physiological addiction to oil
palm which continues to drive them into these areas,
pointing out the poorly maintained and ineffective fences.

To address this issue, he presented a solution from the Tabin Wildlife Reserve in Sabah, where grasslands have been cultivated to provide an alternative food source. By planting preferred grass species, the project has shown early success in diverting elephants away from plantations.

The session then shifted focus to the overpopulation of monkeys in urban and forest areas, which poses threats to ecosystems and biodiversity. Dr. Payne explored various population control methods, including doing nothing, culling, and translocation, ultimately advocating for neutering as the most humane and sustainable solution to manage the monkey population effectively, reducing the
likelihood of population resurgence.

In closing, Dr. Payne called for a paradigm shift in
managing human-wildlife conflicts. He advocated for
integrating both ethical considerations and costeffectiveness into wildlife management systems, drawing on the successes of the case studies he presented.

QUOTES:

“I'm urging you to have a sort of conceptual change.
Whether we like it or not, humans are sort of in charge
when there needs to be some element of management in
wildlife.”

“There are no rocket science methods to manage wildlife
with net benefits to people and other species alike.”

“....we should endorse a paradigm shift where managing
human wildlife conflict is translated into management of
wildlife in ways that are ethically acceptable, doable, and
not very costly.”

DAY 2: WORKSHOP VII: (BIODIVERSITY) REFORESTATION BEST PRACTICES
Dr. Dzaeman Dzulkifli, Executive Director, Tropical Rainforest Conservation & Research Centre (TRCRC)

Dr. Dzaeman began by stressing humanity’s deep reliance on forests, highlighting their essential contributions to food, business, and climate regulation by acting as carbon sinks and mitigating the impacts of floods and droughts. However, with climate change triggering more frequent extreme weather events, he warned that forests could become significant carbon emitters, particularly through forest fires, which release vast amounts of carbon dioxide.

He then shifted focus to the importance of biodiversity,
noting that ecosystems with high biodiversity are more
resilient to environmental stressors. Unfortunately, many restoration efforts neglect these principles, which
diminishes their overall effectiveness.

To address this, TRCRC is working to establish
conservation hubs across Malaysia that will educate
communities on best reforestation practices, provide
necessary planting materials, and serve as seed banks for endangered species. Additionally, TRCRC has partnered with international organizations to create the Global Biodiversity Standard, an initiative that sets benchmarks for nature-based solutions and aligns restoration efforts with global biodiversity goals.

Dr. Dzaeman emphasized that the dual crises of climate change and biodiversity loss must be addressed in tandem. He called for integrated policies at all levels of government to ensure cohesive and impactful strategies.

He also highlighted the importance of protecting existing forests as a priority before embarking on new reforestation projects. Maximizing biodiversity, carefully selecting restoration sites, and planning for long-term sustainability are essential components of successful reforestation.

Dr. Dzaeman called for a transformative approach to
ecological restoration, emphasizing the interconnectedness of biodiversity, climate resilience, and community engagement.

He advocated for collaboration among stakeholders, the adoption of best practices, and the integration of policies to build a comprehensive framework for reforestation that benefits both the environment and society. By prioritizing diversity and sustainability, we can create a thriving planet that nurtures life in all its forms.

QUOTES:

“….the secret to success is diversity. If we're going to have a
diverse range of species, all the different species will have
different traits. And those different traits will then be able
to withstand different sorts of extremes. So if one species,
for example, may be able to tolerate drought, one species,
for example, will be able to tolerate intense rain.”

“We're definitely on track to 2.6 degrees [of warming] by
2100. And what's happening is that this challenge is a dual
challenge. The climate crisis and the biodiversity crisis
going hand in hand. And it's very important that we're
working on this together because it's not going to be
separate.”

DAY 2: WORKSHOP VIII: (BIODIVERSITY) COMMUNITY ENGAGEMENT
Julian Hyde, CEO, Reef Check Malaysia

Reef Check Malaysia’s conservation efforts focus on 3
crucial ecosystems: mangrove forests, seagrass meadows, and coral reefs. These ecosystems not only provide critical habitats for marine species but also contribute significantly to local economies through fisheries and tourism.

However, these ecosystems have experienced alarming declines, with global coral reefs losing 40% of their cover since 2009, and mangroves and seagrasses suffering 20% and 29% losses, respectively, since 1980.

Julian Hyde emphasized that local community
engagement is key to reversing these trends. He shared success stories of community-led initiatives in Malaysia that have effectively conserved coastal ecosystems.

Reef Check’s first project in Tioman Island, through
capacity building, training, and participatory co-management, enabled local communities to actively
participate in activities such as ghost net removal, coral reef rehabilitation, and marine surveys.

On Mantanani Island, fish bombing, once a severe issue, has been reduced by 99% thanks to fish bomb detectors and alternative livelihoods like homestays. Hyde attributed this success to both economic development and strong community involvement.

In Redang Island, local communities established a boat exclusion zone to protect turtle nesting areas, achieved through empowerment and collaboration rather than top down directives.

Similarly, in Semporna, local wardens now use drone
technology to monitor and protect traditional fishing
grounds from illegal fishing activities, effectively
preserving their resources.

Julian Hyde highlights the importance of empowering
local communities through education, economic
development, and active participation fosters sustainable practices that protect vital ecosystems.

Expanding capacity-building initiatives and supporting alternative livelihoods ensure that conservation efforts are not only successful but sustainable in the long term.

QUOTES:

“Bringing communities involved makes them partners in
inclusive approaches instead of making enemies of them.”

“You can't force people to be compliant. You have to
encourage them and incentivize them to be compliant.”

DAY 3: MASTERCLASS I - A PRIMER ON INTRODUCING CARBON PRICING IN MALAYSIA
Taisei Matsuki, Senior Climate Change Specialist, World Bank Singapore
Welcoming remarks: Tan Mei Ling, Senior Country Operations Officer, World Bank Malaysia

Tan Mei Ling opened the session by welcoming
participants and inviting Taisei Matsuki to share insights on the mechanisms, challenges, and opportunities of implementing carbon pricing systems, with a focus on the Malaysian context. Taisei began by discussing the alarming rise in global carbon dioxide emissions and stressed the importance of carbon pricing as a mechanism to decouple Malaysia's gross domestic product (GDP) from fossil fuel consumption while meeting climate obligations.

He highlighted that a carbon price of at least $60 per tonne is necessary to limit global temperature rise to 1.5℃, though only 9 current global carbon pricing initiatives meet this benchmark.

Taisei elaborated on the various carbon pricing
mechanisms available—carbon taxes, Emissions Trading Schemes (ETS), carbon crediting, and hybrid schemes— emphasizing that Malaysia's approach must be tailored to its unique political, economic, and social landscape.

He acknowledged that while Malaysia has already initiated voluntary carbon markets, carbon taxes and a domestic ETS remain under consideration. He proposed that Malaysia’s efforts should focus on the energy sector, which accounts for approximately 80% of national emissions, with the Ministry of Environment could play a critical governance role in overseeing these initiatives.

Supplementing his points, Taisei highlighted the following 5 essential elements in designing effective carbon pricing mechanisms:

Scope: Defined by sectoral and emissions coverage,
point of regulation, and thresholds established by the
designated regulatory authority.

Tax rates or emissions cap: Determined based on the social cost of carbon, a target-driven approach, or consideration of economic and political feasibility.

Mitigation of unwanted effects: Addressing carbon
leakage and the societal impacts of distributional
effects through strategic policy coordination,
transitional allowances, subsidies, and other
supporting actions.

Revenue use: Ensuring that revenue generated from
carbon pricing is effectively reinvested in climate
mitigation and adaptation initiatives, while also
minimizing negative socioeconomic impacts.

Institutional setup: Establishing clear role
distribution, fostering inter-ministerial coordination,
and ensuring alignment between carbon pricing
mechanisms and Malaysia’s broader policy landscape.

In conclusion, Taisei emphasized that despite its delayed entry into carbon pricing, Malaysia stands to benefit significantly from the experiences of nations with similar political and economic structures.

Key takeaways included the importance of defining clear objectives, integrating carbon pricing with broader fiscal policies, employing gradual and adaptable pricing mechanisms, and fostering transparent, consistent communication to ease societal transitions. By following these principles, Malaysia can establish an impactful carbon pricing system that supports its climate goals while driving economic growth.

QUOTES:

Tan Mei Ling, Senior Country Operations Officer,World Bank Malaysia
“We [World Bank] work with the Malaysian government.
However, this work [carbon pricing discussion] is still very
much ongoing.”

Taisei Matsuki, Senior Climate Change Specialist,World Bank Singapore
“So the point is, if you do have two objectives - economic
growth and then mitigation of climate change, the simplest
way is how to decouple these two things.”

“If you talk about carbon pricing, it’s simply polluters
have to pay. That is simple. Until recently, it was
decoupled.”

“Carbon pricing is not almighty, it should be in line with
other policies .… We have to carefully think about the
interrelation with existing or planned policies.”

“Policymakers have to make a decision -what is the most
socially, economically, politically acceptable choice.”

DAY 2: MASTERCLASS II - PROPERTY AND CONSTRUCTION SECTOR - GREEN BUILDINGS BEST PRACTICES
Ibsen C. Barlongay, Regional Sales Manager - ASEAN, CarbonCure Technologies
Gregers Reimann, Managing Director, IEN Consulting
S Ramesh, General Manager, IJM Corporation
Moderated by Mitch Gelber, CEO, Malaysia Green Building Council (malaysiaGBC)

S Ramesh provided an overview of the construction
industry’s environmental impacts. While construction is
essential for economic growth, it consumes vast amounts of natural resources—such as wood, metals, and aggregates —while contributing to pollution, waste generation, energy consumption, and greenhouse gas emissions. Sustainable construction, he explained, aims to minimize these impacts by addressing environmental, economic, and social factors in a cohesive manner.

Ramesh highlighted IJM Corporation’s commitment to
sustainability through practices like waste management and energy-efficient site operations. He showcased several case studies where collaboration among stakeholders led to integrated construction projects that prioritized sustainability, particularly in worker safety and social wellbeing. He urged attendees to avoid greenwashing by evaluating sustainability claims based on measurable data and third-party certifications.

Gregers Reimann shared 3 exemplary case studies,
beginning with the ST Diamond Building in Putrajaya,
which demonstrated that green buildings are not only
environmentally sound but also cost-effective and easy to maintain. Contrary to misconceptions, the building’s design—with features such as daylighting and passive cooling systems—reduced maintenance costs and enhanced operational efficiency.

The second case study focused on the Paramit Factory in Penang, where energy-efficient design reduced the chiller plant size, resulting in immediate savings of $5 million. The building used 40% less energy than its predecessor, with natural light and improved working conditions increasing productivity. This led to a payback period of just two years when factoring in energy savings and productivity gains.

The third case study featured the National University of
Singapore, which opted to retrofit a 1970s building instead of rebuilding, reducing carbon emissions and costs. With hybrid ventilation and solar panels, the retrofit cut energy consumption by 50% and is projected to make the building energy-positive.

Ibsen C. Barlongay addressed the significant carbon footprint of concrete, particularly focusing on its role in global CO₂ emissions. Concrete, while durable and cost effective, is responsible for 8% of global emissions, largely due to the energy-intensive process of producing clinker, a key component of cement.

Ibsen highlighted technological advancements in cement production that have halved energy requirements since the 1800s, and ongoing research into producing zero-emission cement using alternative materials. He introduced CarbonCure’s technology, which embeds captured CO₂ into concrete, permanently storing it as calcium carbonate. This process not only reduces emissions but also enhances the strength and durability of concrete.

In response to Mitch Gelber’s question on reducing
carbon emissions in construction, Gregers pointed to the potential of wooden construction in Malaysia but
acknowledged challenges such as humidity, termite
damage, and fire safety. Ramesh emphasized the
importance of considering a building’s entire lifecycle
when striving for net-zero carbon emissions, highlighting the lack of baseline data to effectively measure progress.

Mitch added that retrofitting older buildings is crucial,
especially given Malaysia’s oversupply of commercial
properties and housing. Mitch and Ibsen also discussed the challenges of scaling up low-carbon technologies like CarbonCure due to regulatory hurdles and industry hesitance. However, Mitch emphasized that new technologies follow an adoption curve, with innovations that seem costly or unfeasible at present becoming commonplace over time, much like smartphones.

When asked about the cost of green building adoption, Gregers debunked the myth that sustainable buildings are prohibitively expensive. With proper design and planning green buildings can be constructed at little or no additional cost, often leading to significant long-term savings.

Mitch expanded on this, noting that a building’s budget does not determine its performance; instead, priorities in the construction process are what truly matter. Ibsen echoed these sentiments, explaining that while sustainable materials may have higher upfront costs, the long-term benefits—such as energy savings and reduced carbon intensity—outweigh the initial investments.

The panelists emphasized the importance of integrating sustainability into the property and construction sectors, showcasing examples of how green buildings and materials can deliver both environmental and economic benefits. Sustainable construction not only reduces carbon emissions but also leads to long-term savings and improved
building performance.

QUOTES:

S Ramesh, General Manager, IJM Corporation Berhad

“The primary goal [of sustainable construction] is to
understand what is that impact, how are we going to
mitigate it and to understand that the decisions that we're
making today have a long term and short term impact.”

Gregers Reimann, Managing Director, IEN Consulting
“There's a big misconception about how expensive green
buildings are.”

Ibsen C. Barlongay, Regional Sales Manager - ASEAN, CarbonCureTechnologies Inc
“There's not really a permanent embodiment of this
captured CO₂ or sequestered CO₂ from the atmosphere,
from anywhere into something that is beneficial also to the
industry .…What we are trying to do here is to bring back
the CO₂ into the lime and permanently have it in the
concrete again.”

Mitch Gelber, CEO, Malaysia Green Building Council(malaysiaGBC)
“Adaptive reuse and how we transition from not only
building new buildings, but making better use of buildings
that we already have is a key step going forward.”
“With a lot of these sustainable technologies [and]
practices – electric cars, solar panels – what seems like pie
in the sky technology within a very short period of time is
going to be absolutely commonplace.”

DAY 2: WORKSHOP IV: LESSONS FROM A NEGATIVE CARBON EMISSIONS COUNTRY
Professor Thakur S Powdyel, Former Minister of Education, Royal Government of Bhutan

QUOTES:

“Life is precious. Life is sacred. This belief helps in shaping the Bhutanese psyche that naturally protects nature and the environment."

”We have made a commitment to ourselves and to the succeeding generations of our Bhutanese people to remain at least carbon neutral for all times to come."

"....every nation needs its own North Star, its own dream, its own goals. For Bhutan, the big North Star is the vision of Gross National Happiness

DAY 2: WORKSHOP IV: LESSONS FROM A NEGATIVE CARBON EMISSIONS COUNTRY
Professor Thakur S Powdyel, Former Minister of Education, Royal Government of Bhutan

QUOTES:

“Life is precious. Life is sacred. This belief helps in shaping the Bhutanese psyche that naturally protects nature and the environment."

”We have made a commitment to ourselves and to the succeeding generations of our Bhutanese people to remain at least carbon neutral for all times to come."

"....every nation needs its own North Star, its own dream, its own goals. For Bhutan, the big North Star is the vision of Gross National Happiness