BERNAMA – Malaysia is expecting to see at least half of new financing by the banks aligned with climate-supporting or transitioning activities by 2026, said Bank Negara Malaysia’s (BNM) Governor Datuk Abdul Rasheed Ghaffour.
He said there is currently growing focus and concrete climate actions taken by financial institutions in Malaysia and to date, the industry’s financial commitment stands at over USD43 billion for environmental, social and governance (ESG) purposes.
“That said, Malaysia cannot do this on its own. As stated in the National Energy Transition Roadmap (NETR), the government anticipates that Malaysia will require investments of about USD280 billion by 2050 to meet our energy transition needs,” Abdul Rasheed said in his opening address at Malaysia’s Climate Finance Day at the 28th Conference of Parties (COP28) in the United Arab Emirates.
He said that it is hoped that the Malaysian financial sector to play a key, vibrant role in mobilising capital to address the enormous climate financing needs of the world at large which is estimated at USD275 trillion by 2050.
“Our vision for Malaysia to facilitate and catalyse green finance flows for the betterment of the planet aligns closely with our aspiration of becoming the renewable energy hub for ASEAN, as well as to serve as an international gateway for Islamic finance.
“We see the opportunity for more innovative solutions such as blended finance to support a just and orderly transition. To illustrate, by combining concessional financing and commercial funding, blended finance can help increase the bankability of high-risk green and transition projects,” he said.
Abdul Rasheed said blended finance can also ease transition costs, especially for small and medium-sized enterprises (SMEs). “Being a nation blessed with unparalleled biodiversity, nature conservation holds paramount importance for Malaysia. Our rich ecosystems not only contribute to the global tapestry of life but also form the backbone of our economy and the livelihoods of many Malaysians,” he said.
