KUALA LUMPUR, Oct 20 (Bernama) — Malaysia\u2019s pledge\u00a0to minimise\u00a0its greenhouse gas\u00a0emissions by 2030 is facing challenges including a mismatch in demand and supply of fundings\u00a0for green technology, as well as information asymmetry.<\/p>\n\n\n\n
Bank Negara Malaysia (BNM) assistant governor Fraziali Ismail said that considerable funding gaps remain in sustainable projects, despite the roll out of green financing through schemes such as the Green Technology Financing Scheme.<\/p>\n\n\n\n
\u201cSome institutions are allocating capital and steering financial flows towards more low-carbon, climate resilient activities. However, considerable funding gaps remain and public finance will likely be inadequate for this task, and there is, inevitably, a need to draw in private capital.<\/p>\n\n\n\n
\u201cThe renewable energy sector, for example, requires a total of RM33.5 billion of funding by 2025, based on the projections provided by the Sustainable Energy Development Authority (SEDA) Malaysia,\u201d he said in his keynote speech at the Financing Climate Action Conference held today.<\/p>\n\n\n\n
The conference was held in conjunction with the International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM) 2020, themed \u201cClimate Action in the Malaysian Financial Sector\u201d.<\/p>\n\n\n\n
Citing Asian Development Bank\u2019s (ADB) report, Fraziali said green financing is still lacking and green investments remain under funded.<\/p>\n\n\n\n
\u201cRecent report by the ADB highlighted that Southeast Asian countries require funding worth US$3.1 trillion for climate- adjusted infrastructure in the region by 2030,\u201d he said.<\/p>\n\n\n\n
Fraziali emphasised that there is a need to find a way to bridge the language and information gap between scientists, government and financiers.<\/p>\n\n\n\n
\u201cWhat science says about climate effects, what climate action the government is prioritising, what industries are providing and investing in \u2013 are quite incongruent at this point.<\/p>\n\n\n\n
\u201cWhile there is now a stronger demand for green financing, it is not matched by the supply side due to information gaps between financiers and green promoters,\u201d he said.<\/p>\n\n\n\n
Fraziali also acknowledged that financial institutions\u2019 limited technical know-hows regarding the green sector may cause them to hesitate in providing funding or any form of protection or guarantees due to perceived risks.<\/p>\n\n\n\n
At the same time, he noted that limited financial literacy among project sponsors, such as corporates and micro, small and medium enterprises, would also put them at a disadvantage in project evaluation.<\/p>\n\n\n\n
\u201cMany may also be unaware of the available financing instruments and suitable financing for their green ventures,\u201d he said. <\/p>\n\n\n\n
Fraziali also emphasised the role of the financial sector, particularly that of the capital market, in driving Malaysia\u2019s sustainable development through the sukuk market.<\/p>\n\n\n\n
\u201cWe can certainly tap into the sukuk market to fund activities or technologies that support a low-carbon and climate resilient society,\u201d he said. <\/p>\n\n\n\n
He added that the sukuk market, which is a high growth segment in Islamic finance, has an important role in supporting the growth of the green technology sector.<\/p>\n\n\n\n
\u201cMalaysia continues to be at the forefront of green sukuk, which is the preferred mode of investment for those that prefer investments with a positive environmental impact,\u201d he said.<\/p>\n\n\n\n
— NNN-BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":"
KUALA LUMPUR, Oct 20 (Bernama) — Malaysia\u2019s pledge\u00a0to minimise\u00a0its greenhouse gas\u00a0emissions by 2030 is facing challenges including a mismatch in demand and supply of fundings\u00a0for green technology, as well as information asymmetry. Bank Negara Malaysia (BNM) assistant governor Fraziali Ismail said that considerable funding gaps remain in sustainable projects, despite the roll out of green financing through schemes […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[288,300,318],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/97641"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=97641"}],"version-history":[{"count":0,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/97641\/revisions"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=97641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=97641"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=97641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}