Malaysia is a Party to the United Nations Framework on Climate Change and has ratified the Kyoto Protocol on 4 September 2002. The Kyoto Protocol entered into force on 16^th of February 2005.

Malaysia has been following the negotiations and development of climate change issues very closely due to the numerous implications that can and will arise from the agreements achieved. As a developing country, Malaysia has no quantitative commitments under the Kyoto Protocol at present.

However, through the Clean Development Mechanism (CDM), Malaysia could benefit from investments in the GHG emission reduction projects, which will also contribute towards the country's sustainable development goals, the overall improvement of the environment and result in additional financial flows. CDM projects result in certified emission reduction (CERs) that can be traded in the international market. Like any other trade, these CER units accrued through the CDM are a commodity. These CERs will provide mutually shared benefits between developing and developed countries.