Malaysia’s central bank and capital market regulator launched a Climate Finance Innovation Lab (CFIL) to accelerate the development of green financial solutions and support the country’s transition to a low-carbon economy.
In a joint statement, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) said the CFIL will serve as a collaborative platform to identify, co-develop, and implement innovative climate finance solutions in partnership with public, private, and philanthropic sectors.
The initiative, a product of discussions at the 14th Joint Committee on Climate Change (JC3) meeting in January, will focus on four priority areas: energy transition and green innovation, sustainable agriculture, circular economy and sustainable cities, and nature-based solutions.
“This marks a major milestone in Malaysia’s climate finance journey,” said BNM Assistant Governor and JC3 Co-Chair Madelena Mohamed. “Greater private sector involvement is crucial to scaling up climate and nature-positive actions.”
CFIL, administered by Bank Pembangunan Malaysia Berhad (BPMB), will adopt a modular design to streamline the ideation and deployment of financial instruments. Eligible project owners will gain access to funding, technical support, and networks to advance their initiatives.
SC Executive Director and JC3 Co-Chair Salmah Bee Mohd Mydin said CFIL would act as an “incubator” for catalytic projects that often struggle to secure financing.
JC3, established in 2019, includes senior officials from BNM, SC, Bursa Malaysia, and 21 financial institutions. It leads efforts to build climate resilience in the Malaysian financial sector through coordinated action and innovation.
Business News Asia