Financial institutions are urged to collaborate with government agencies and civil society organisations to create partnerships to drive sustainable development and support Malaysia’s transition towards a green economy.
In making the call, Natural Resources, Environment, and Climate Change Minister Nik Nazmi Nik Ahmad said industry collaborations are the most powerful tool to support Malaysia’s ambitions, therefore, the banking sector needs to recognise its role as a catalyst for change.
He said the banking sector holds tremendous financial power, capable of steering investment decisions towards greener alternatives.
“By incorporating sustainable energy projects into their lending portfolios, financial institutions can incentivise and promote the development of clean energy infrastructure.
“This will be instrumental in accelerating the transition by providing businesses and individuals with the necessary capital to pursue renewable energy initiatives.
“Indeed, by supporting such projects, banks are, in effect, ‘voting’ for sustainability and, therefore, a better future for Malaysia,” he said at an International Environmental, Social, and Governance Conference titled “Shaping Today For Tomorrow” here, today.
Nik Nazmi said banks can foster a culture of environmental responsibility, encouraging businesses and individuals to transition towards renewable energy sources, which could include offering financial incentives for renewable energy installations and energy-efficient projects.
He also said collaboration between the banking sector and the government is critical in ensuring a successful energy transition as the country aims to have a renewable energy capacity of up to 70 percent by 2050.
“By working hand-in-hand, we can develop and implement financial policies and regulatory frameworks that support clean energy investments.
“This collaboration can also help address any potential financial barriers that may hinder the adoption of RE technologies.”
On another development, Nik Nazmi told reporters later that the second phase of the National Energy Transition Roadmap (NETR) would be launched by Prime Minister Datuk Seri Anwar Ibrahim at the end of this month.
He said Phase 2 would be focusing more on broader policies to complement Phase 1, which was launched by Economy Minister Rafizi Ramli on July 27.
