Malaysia - Grid IP

Overview

In Malaysia, ports sit alongside coral reefs, mangroves, seagrass beds, and estuaries. These coastal ecosystems support port operations and are affected by them. Ecosystems are degrading and the risk of flooding, erosion, and extreme weather is intensifying.

While Malaysian ports have made progress on “green port” initiatives, most efforts focus on decarbonization rather than biodiversity and ecosystem services. This project integrates biodiversity and nature-based solutions into infrastructure planning to strengthen resilience while protecting coastal ecosystems.

Challenge

Ports in Malaysia are expanding rapidly to handle larger ships and higher cargo volumes. Developing new terminals and expanding port infrastructure involves deepening channels and land reclamation to create space. This degrades and disrupts marine habitats, which naturally reduce wave energy, store carbon, and protect shorelines.

At the same time, climate change is increasing sea-level rise and extreme weather, putting port infrastructure and nearby communities at greater risk.

Opportunity

Malaysia has a strong foundation to lead on nature-positive port development. National transport and port strategies already recognize the need for sustainability, and port authorities are actively investing in innovation and modernization.

Nature-based solutions, such as restoring mangroves for shoreline protection or using reefs to reduce wave impacts, offer a way to address climate risks while enhancing biodiversity. These approaches can complement gray infrastructure, often at lower long-term cost and with added social and environmental benefits.

Through the GRID integrated program, Malaysia aims to help ports, policymakers, and investors see nature as an asset that strengthens resilience, reduces risk, and supports long-term economic performance.

Approach

The GRID project in Malaysia has been designed to address national and port-level policy gaps, leverage financing, and demonstrate nature-based solutions at three federal ports to establish proof of concept and raise awareness among port authorities.

The project will implement nature-based solutions at three federal ports: Bintulu, Kemaman, and Kuantan. These pilots are designed to generate practical lessons and proof of concept.

This project also explores ways to unlock public and private financing for nature-based solutions, helping move them from pilot projects into mainstream infrastructure investment.

Results & Impact

By integrating biodiversity into port planning and investment, the GRID project in Malaysia seeks to improve the health of coastal ecosystems such as mangroves, coral reefs, seagrass beds, and estuaries, which helps ports adapt to climate change. More broadly, the project aims to demonstrate that nature-based solutions are practical, investable, and essential for resilient infrastructure development.

The expected outcomes and global environmental benefits of the project are the restoration and conservation of key coastal ecosystems and biodiversity, avoiding or minimizing impacts on coastal landscapes and seascapes caused by port infrastructure, and strengthening climate adaptation and resilience.

Partners & Local Team

This project is executed by the Ministry of Transport and Maritime Institute of Malaysia and implemented by the United Nations Environment Programme.