Malaysian regulators Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SC) announced Wednesday the rollout of the climate finance innovation lab.
The duo said in a joint statement that this initiative aims to accelerate the development of innovative climate finance solutions.
As deliberated by Joint Committee on Climate Change (JC3) plenary members at the 14th JC3 meeting in January 2025, CFIL is a collaborative platform involving public, private and philanthropic partnerships to identify, co-develop and implement innovative climate financial solutions that strengthen Malaysia’s climate resilience.
CFIL focuses on four key thematic areas: energy transition and green innovation, sustainable agriculture, circular economy and sustainable cities, and nature-based solutions and biodiversity.
Building on past initiatives and pilot projects, CFIL marks a significant milestone in Malaysia’s sustainability journey.
This further reinforces JC3’s commitment to driving impactful climate action through strategic partnerships and innovative financing.
Administered by Bank Pembangunan Malaysia Berhad (BPMB), CFIL will adopt a modular approach for ongoing efficiency and effectiveness in the ideation and design of financial solutions.
Eligible project owners will have access to funding, technical assistance and a wider network of stakeholders to implement their projects.
“There is an urgent need to scale up climate finance and nature-positive actions in Malaysia,
“Greater private sector involvement is crucial for accelerating our climate journey towards sustainable development,” BNM Assistant Governor and JC3 Co-Chair Madelena Mohamed said.
According to her, the CFIL partnership aims to strengthen public-private-philanthropic climate finance through blended finance structures, innovative mechanisms and Islamic
finance instruments.
“We call on all stakeholders to partner with us in this journey,
“Together, we can drive impactful change and build a resilient Malaysia,” she added.
Meanwhile, SC Executive Director and JC3 Co-Chair Salmah Bee Mohd Mydin said they envision CFIL as an incubator for catalytic projects critical to achieving the national climate goals, but they face challenges securing financing through existing channels.
“With the support of JC3 and the financial industry, CFIL is positioned to connect project owners with diverse funders to scale up climate and nature-related solutions in Malaysia,” she added.
The JC3 is a platform established in September 2019 to pursue collaborative actions for building climate resilience within the Malaysian financial sector.
The JC3 is co-chaired by Madelena Mohamed, Assistant Governor of Bank Negara Malaysia and Salmah Bee Mohd Mydin, Executive Director of Securities Commission Malaysia, with members comprising senior officials from Bursa Malaysia and 21 financial industry players.
The JC3’s initiatives and priorities are undertaken by its five sub-committees, namely risk management; governance and disclosure; product and innovation; engagement and
capacity building; and bridging data gaps.
An small and medium-sized enterprise (SME) Focus Group has been established to develop strategies and solutions that support transition by SMEs.
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