The Malaysian Green Technology Corporation (GreenTech Malaysia) is an organisation under the purview of the Ministry of Energy, Green Technology and Water, Malaysia (KeTTHA), charged with catalysing green technology deployment as a strategic engine for socio-economic growth in Malaysia in line with the National Green Technology Policy 2009.
GreenTech Malaysia is focused on meeting the objectives of the Malaysian National Green Technology Policy 2009 by:
- Developing sustainable and widespread green technology markets
- Strengthening the local green technology industry
- Enhancing human competency and capacity in green technology applications
- Formulating support policies and financing frameworks to promote green technology growth
- Promoting and creating awareness of green technologies
These initiatives are carried out through GreenTech Malaysia’s four key Flagship Projects, namely, Green Malaysia Plan, Green Procurement, Electric Mobility and Sustainable Living, across five key sectors, which are Energy, Transport, Building, Waste Management and Water Management.
In 2010, the Malaysian Government introduced the Green Technology Financing Scheme (GTFS), administered by GreenTech Malaysia to fund green technology related ventures providing easier access to financing from the market. The Scheme was initially set to last through 2015 and was extended first through 2017 and again through 2022. These extensions reflect the Government’s commitment to pursuing the development of the green technology sector for the nation’s socio-economic growth. The loan guarantee scheme offers a rebate of 2% per annum on interest or profit rates charged by financial institutions while also providing a Government guarantee of 60% for the green cost of the financed amount. The GTFS extension through 2022 included approval that an addition MYR 5 billion (USD 1.2 billion) of loans may be approved through the scheme, on top of the MYR 3.5 billion (USD 814 million) already approved.
As the nation’s lead catalyst for green technology, GreenTech Malaysia plays a determining role by continuing to introduce feasible financial mechanisms to support green growth scaling up investments. One of its latest initiatives is the setting up of a subsidiary, GreenTech Catalyst Sdn Bhd (GreenTech Catalyst) with a mission to stimulate and create an environment that generate and accelerate green investments and trade. While given the task to manage the GTFS, GreenTech Catalyst has also recently, formed a strategic alliance with a financial institution in establishing the Energy Efficiency Financing Scheme that provides funding to Energy Service Providers that have secured Energy Performance Contracts.
Since the inception of the GTFS in 2010, as of May 25 2017, the GTFS has successfully approved a total of 285 projects with a total cost of nearly USD 1.4 billion. The amount of loans that have been approved under the scheme is USD 729 million. The bulk of projects approved are in the renewable energy sector. The approved projects are anticipated to contribute to the avoidance of over 3.1 million tonnes of CO2 equivalent every year and create a more than 4,000 green jobs. The GTFS has been instrumental in encouraging the participation of private financial institutions to invest in green ventures, as it has brought together a total of 28 banks and financial institutions to participate in the Scheme. With increasing numbers of entrepreneurs venturing into the green technology sector, GTFS will continue to be an important enabler bridging financing gaps and empowering emerging green businesses in the country.
Last updated August 16 2017