KUALA LUMPUR, October 7 – The government is committed to achieving zero net greenhouse gas emissions as early as 2050. To support this aspiration, we can no longer continue with business as usual. Planetary health needs to be taken into account in the national development agenda. In connection with that, the Government has presented the Environmental Quality Bill (Amendment) 2022 Phase 1 which, among other things, increases punishments, fines and penalties for environmental offenders.
In order to encourage green investment, the Government proposes to extend the incentive application period for Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) until 31 December 2025 by improving the incentive period from 3 to 5 years for eligible green activities such as solar activities along with Battery Energy Storage System. In addition, the Green Technology Financing Scheme (GTFS) will also be improved with:
The guarantee value is increased to 3 billion ringgit until the year 2025; the scope of financing is extended specifically to the EV sector with a guarantee limit of up to 60 percent; and the financing of the waste sector will be increased to 80 percent. As a simple loan, BNM will provides 1 billion ringgit under the High and Green Technology Financing Fund to support innovative sustainable technology start-ups and 1 billion ringgit under the Low Carbon Transition Financing Fund to help SMEs implement low carbon practices.
