The Green Technology Financing Scheme (GTFS) has approved financing for 188 projects amounting to RM2.2 billion as of June 30, 2015, via 26 participating financial institutions.
Upon commencement of the operations, the approved financing would create over 3,000 green jobs and reduce close to 2.67 million tonnes of carbon emission equivalent, said GreenTech Malaysia Chairman, Tan Sri Peter Chin Fah Kui.
He said these projects were also expected to generate RM4.43 billion in green investment in the country.
“The GTFS amply demonstrates how the government incentives, when effectively partnered with private financing, can play a crucial role in triggering the growth of emerging fields such as green technology.
“The further involvement of public and private finances will be crucial to leverage on this momentum and give traction to the growth of the green sector,” he said at the opening of the Green Financing Forum here today.
The former Energy, Green Technology and Water Minister said approximately 55 per cent of total finance approved was in the form of Islamic financing.
This was a marked increase from just about 10 per cent in 2010, the first year of the GTFS programme, he said.
Moving forward, Chin said, Islamic financing would continue to be a determining force in accelerating the growth of the green sector.
He said this was supported by Malaysia’s strong reputation and experience in the Islamic finance sector, as well as, both Islamic financing and green ventures shared similar ethical values.
GreenTech Chief Executive Officer, Ir Ahmad Hadri Haris, said the organisation expected to disburse a total of RM2.7 billion by year-end, which would be equivalent to additional 20-30 projects.
GTFS was initiated in 2010 to promote green technology by availing loans/financing to companies that supply and use green technology with an allocation of RM3.5 billion.
It offers a two per cent rebate per annum on interest from financial institutions while providing a government guarantee of 60 per cent for green cost of the financed amount.
Thanks for reading to the end of this story!
We would be grateful if you would consider joining as a member of The EB Circle. This helps to keep our stories and resources free for all, and it also supports independent journalism dedicated to sustainable development. It only costs as little as S$5 a month, and you would be helping to make a big difference.