Overview
Malaysian Green Technology and Climate Change Centre (MGTC), formerly known as Malaysian Green Technology Corporation or GreenTech Malaysia, is an agency under the purview of the Ministry of Environment and Water, Malaysia mandated to lead the nation in the areas of Green Growth, Climate Change Mitigation and Climate Resilience and Adaptation.
Under Green Growth, MGTC focuses on three key areas:
Green Incentives and Certification
- Green Incentives
- Green Financing
- Green Labelling and Certification
Green Advisory and Capacity Building
- Green Advisory and Consultancy
- Roadmap/Action Plan Development
- Green Skills and Competency Development
Green Promotion and Investment
- Green Investment
- Business Matching
- Green Business Promotion and Exhibition
Under its expanded scope, MGTC now focuses on Climate Change Mitigation and Climate Change Adaptation through the following roles:
Policy Analysis
National Reporting
National Programmes Coordination
- Climate Change Mitigation
- Climate Change Adaptation
Focal Point for Climate Change Mitigation and Adaption Data
Communication, Education and Public Awareness (CEPA)
Activities
In 2010, the Malaysian Government introduced the Green Technology Financing Scheme (GTFS), administered by MGTC 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 2020. 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 2020 included approval that an addition MYR 2billion of loans to be approved through the Scheme, on top of the MYR3.5 billion already approved. The GTFS has encouraged companies to undertake large-scale green projects contributing to a more positive impact to the local green market. As the nation’s lead catalyst for green technology deployment, MGTC plays a determining role by continuing to introduce feasible financial mechanisms to support green growth scaling up investments.
Impact
Since its inception in 2010, as at May 2020 the GTFS has successfully approved a total of 349 projects with a total financing amount of about MYR4.5 billion or USD1.04 billion. While the Scheme covers projects in various sectors such as Energy, Building, Transport, Waste and Water as well as the manufacturing sector, the bulk of projects approved are in the renewable energy sector which accounted to more than 80% of the loans approved. The approved projects are anticipated to contribute to the avoidance of over 3.7 million tonnes of CO2 equivalent every year. The GTFS has been instrumental in encouraging the participation of private financial institutions to invest in green ventures and it has brought together a total of 29 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 June 2, 2020
