KUALA LUMPUR, November 15 — Malaysia’s Minister of Economy, Rafizi Ramli, announced that the government is actively exploring collaboration with the financial sector to establish an energy transition financing mechanism. The initiative aims to facilitate companies’ participation in green projects, aligning with the National Energy Transition Roadmap (NETR). Minister Rafizi highlighted the importance of creating a comprehensive ecosystem where industries can contribute to various green projects beyond solar or hydrogen initiatives.
He expressed the government’s intention to work closely with banking and financial institutions to develop a new financing stream termed “transition financing. While delivering his keynote address at the Asian Strategy and Leadership Institute (ASLI) Banking and Finance Summit 2023, Minister Rafizi emphasized the need for a broader perspective on financing. He acknowledged that certain projects, such as those enhancing energy efficiency, might not qualify for traditional green funding. Through the NETR, the government has already allocated RM2 billion in financing for energy transition projects.
Minister Rafizi revealed plans to collaborate with financial institutions to determine the allocation for the proposed transition financing mechanism. He expressed optimism that this collaboration would expand the scope of green financing to include transition financing, fostering a more comprehensive approach to sustainability in the financial market. This initiative reflects Malaysia’s commitment to advancing its energy transition agenda, encouraging the financial sector’s active involvement in promoting sustainable practices and supporting projects that contribute to a greener future.
