KUALA LUMPUR: Demand for green technology financing is anticipated to accelerate to RM70 billion between 2015 and 2030, due to the sector’s huge untapped potential.
Chief executive officer of Malaysian Green Technology Corporation (GreenTech) Ahmad Hadri Haris said financing played a key role in boosting the growth of green technology and Malaysia is recognised as a country with established green financing.
“Malaysia’s green financing is unique.
“While others like the United Kingdom, the United States, Japan and Australia have a dedicated green financing bank, we work with existing banks to mobilise the Green Technology Financing Scheme (GTFS),” he told Bernama.
He said as of June, 23 banks had participated in the GTFS, including Malaysian Debt Ventures Bhd (MDV), with RM1.95 billion disbursed for 141 projects and 2,014 jobs created, alongside reducing carbon emission (CO2) by 2.29 million tonne annually.
The GTFS was initiated in 2010 for a period of five years and targets both producers and users of green technology, with a total funding allocation of RM3.5 billion by the government.
The scheme which offers a rebate of two per cent per annum on interest charged by financial institutions, also comes with a government guarantee of up to 60 per cent of the financed amount.
Greentech is tasked as the facilitator in assessing projects and assisting coordination between applicants and financial institutions.
When the GTFS ends in December next year, Ahmad Hadri said he is in favour of the global trend initiated by the United Kingdom to have a dedicated green investment bank to further unlock the value of green technology.
He said a dedicated investment agency which appreciates and understands green technology will have greater appetite to look for more viable projects and this will also create more opportunities in moving towards the goal of Malaysia becoming a green technology hub.
“Besides, there are tremendous opportunities to finance green projects around Asia due to the potential in countries like Indonesia, Vietnam and India for such financing,” he added.
He said for the 11th Malaysia Plan with regards to green financing, GreenTech is working directly with MDV. — Bernama