A total of RM2.02 billion was approved to finance 165 projects under the Green Technology Financing Scheme (GTFS) as of Dec 31 last year, said Energy, Green Technology and Water Deputy Minister, Datuk Seri Mahdzir Khalid.The government introduced the GTFS on Jan 1, 2010 with a RM3.5 billion fund for five years to support green technology in Malaysia.
Mahdzir said the use of Renewable Energy (RE) among individuals and companies could help boost government efforts to develop the green technology sector, while guaranteeing energy efficiency.
His ministry, he added, was undertaking various initiatives through the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) to encourage the use of RE by various groups.
“SEDA is focusing on RE such as Solar, Biogas, Biomas and Mini Hidro through the provision of quotas for individuals or companies applying to produce RE,” he told Bernama.
Mahdzir said this includes implementation of the feed-in tariff (FiT) system, a mechanism that encourages individuals and companies, to participate in generating electricity from RE sources and consequently contribute to uplifting the green technology sector.
“Apart from providing an income to those concerned through the sale of the electricity generated to Tenaga Nasional Bhd, it will also help reduce electricity usage on the national grid,” he added.
He said the government was now evaluating more innovative green financing methods, so as to not burden green technology industry players, from the aspect of finance to develop the sector.
“The main obstacle to developing and applying green technology is access to financing.
“A lot of small medium enterprises face a challenge in securing funding due to a number of factors, such as lacking a financial track record and weak credit rating.
“Access to financing is key to developing SMEs. As such, close cooperation between financial institutions, businesses and government agencies with my ministry, is very important in realising the global call for green technology,” he added.
On the Green Building Index (GBI), Mahdzir said as of last November, one million square feet of buildings in the country, had received the certification.
The GBI is Malaysia’s industry recognised green rating tool to promote sustainability in the built environment and raise awareness among developers, architects, engineers, planners, designers, contractors and the public about environmental issues and their responsibility to future generations.