Penang Island Launches Malaysia's First Urban Climate Adaptation Programme

The Penang Island City Council, in partnership with Think City and the Department of Drainage and Irrigation, has developed Malaysia's first climate adaptation programme for urban areas, known as PNBCAP. The nature-based programme targets two densely populated zones — George Town and Bayan Lepas — and is funded by a US$10 million grant from the Adaptation Fund.

Penang faces two primary climate hazards: flooding, which has intensified as annual rainfall per hour increased sixfold from the 1990s to today, rising from an average of 31 mm to 180 mm; and drought, compounded by water insecurity from dependence on resources from neighbouring Kedah. The nature-based programme focuses on urban greening, stormwater management, social resilience, and institutional capacity building. George Town, home to a UNESCO World Heritage Site, has high concentrations of low-income residents and elderly populations in flood-prone areas, while Bayan Lepas contains the international airport and manufacturing zones.

PNBCAP is one of the first formalised urban climate adaptation programmes in Southeast Asia to be funded through a multilateral adaptation finance mechanism, placing Penang at the forefront of nature-based climate resilience in the region. The programme's design was informed by extensive community consultations including focus group discussions, surveys, and open days, resulting in a community co-designed framework. This participatory approach is considered essential for ensuring equitable distribution of adaptation benefits, particularly for the approximately 800 farmers in Penang whose 1,600 hectares of paddy fields face irrigation shortfalls.

The programme is expected to reduce urban surface temperatures, limit stormwater runoff, and build institutional capacity within the city council. Challenges encountered include operational constraints from overlapping responsibilities among stakeholders and the slow pace of disbursement from UN multilateral entities. Looking ahead, Penang aims to integrate its adaptation initiatives into the Penang Green Agenda 2030, which will incorporate UN Sustainable Development Goals and work with technical experts to develop sustainability indicators for the state.

Key figure — US$10 million Adaptation Fund grant