Malaysia rolls out innovation lab for climate finance solutions

Greater private sector involvement is needed to accelerate Malaysia’s climate journey.

Malaysia has unveiled the Climate Finance Innovation Lab (CFIL), an initiative that aims to accelerate the development of ‘innovative’ climate finance solutions.

Launched by the Joint Committee on Climate Change (JC3), and administered by Bank Pembangunan Malaysia Berhad (BPMB), CFIL is a collaborative platform that will involve public, private, and philanthropic partners to identify, co-develop, and implement climate financial solutions in Malaysia, the Bank Negara Malaysia (BNM) said in a statement.

There is an “urgent” need to scale up climate finance and nature-positive actions in Malaysia, said BNM assistant governor and JC3 co-chair Madelena Mohamed.

“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,” Mohamed said, speaking at the launch of the Climate Finance Innovation Lab (CFIL).

JC3 co-chair Salmah Bee Mohd Mydin said that they envision CFIL as an incubator for catalytic projects critical to achieving Malaysia’s national climate goals.

“We envision CFIL as an incubator for catalytic projects critical to achieving the national climate goals, but we face challenges securing financing through existing channels,” Mohd Mydin said. “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.”