Transcript Datuk Wan Azhar – Plenary 2
DFIs in Financing Green Technology:
The Malaysian Experience
Wan Azhar Wan Ahmad Chief Executive Officer Credit Guarantee Corporation Malaysia Berhad
26 April 2012
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1.0 Introduction
Green Economy in Malaysia
• • New Economic Model (NEM) - Malaysia aims to create a
high income
,
inclusive
and
sustainable
society for its citizens.
Focus on: – Sustainability from climate change – Sustainability from environmental impact – Growing acceptance that natural resources are limited
Current : 2% of GDP from green business & 95,000 green jobs By 2015 : 8% of GDP from green business & 500,000 green jobs
2
1.0 Introduction
GT Goals in 10 th
2010
Malaysia Plan
2015
Short-term Goals Short-term Goals (2010-2015)
Increased public awareness &
commitment for adoption and application of GT;
Medium-term Medium-term Goals Goals (2016-2020)
GT becomes preferred choice in procurement of products and services;
Widespread availability &
recognition of GT; Expansion of research, development
& innovation activities on GT
Larger local market share against other technologies.
Increased production of local GT products; Expansion of local SMEs on GT into
global markets; and
FOCUS AREA OF DFI FINANCIAL SUPPORT
Expansion of GT applications to most
economic sectors
Increase foreign & domestic direct investments (FDIs and DDIs) in GT manufacturing and services sectors; and
2020
Long-term Goals Long-term Goals (Beyond 2020)
Widespread adoption of GT
reduces overall resource consumption while sustaining national economic growth;
Malaysia becomes major
producer of GT in global market Significant reduction in national
energy consumption;
2.0 Landscape of Green Economy in Malaysia
•
Introduction of Ministerial Portfolio
– Ministry of Energy, Green Technology and Water in 2009 •
Formulation of National Policy Statement
– National Green Technology Policy overseeing ‘greening’ in 4 sectors: energy, buildings, water and waste management and transportation
4 Pillars of National Green Technology Policy
Seek to attain energy independence and promote efficient utilization Conserve and minimize impact on environment 4 Enhance national economic development through use of technology Improve quality of life for all
2.0 Landscape of Green Economy in Malaysia
• •
Establishment of Implementing Agency
– Malaysian Green Technology Corporation
Formation of National Green Technology and Climate Change Council
– Coordinate issues of green technology between Ministries, agencies, private sector & other stakeholders in ways to implement policies.
•
Registration of a Green Building Association
– Malaysia Green Building Confederation (MGBC) launched Green Building Index to enable green grading & certification of Malaysian buildings.
•
Initiation of a Green Financing Scheme
– Green Technology Financing Scheme to attract innovators and users of green technology.
•
Launching of Green Township Framework
– Outline comprehensive guidelines for new and existing townships to go green by incorporating environmental friendly technologies.
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2.0 Landscape of Green Economy in Malaysia
Efforts on Green Economy
•
Introduction of Green Procurement in all government agencies
– Green procurement manual, procedures & standards are currently under development •
Formulation of Legislation to promote Renewable Energy
– The Renewable Energy Act 2011 (Act 725) and Sustainable Energy Development Authority (SEDA) Act 2011 •
Formulation of Low Carbon Green Growth Act is currently underway
• • • • • Examples of Govt support : COP15: Committed to reduce carbon emissions up to 40% by 2020 Development of Putrajaya & Cyberjaya as green townships Priority to Environment-friendly goods in Govt procurement National Eco-labeling programme by SIRIM Annual International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM) 6
COP15 - 15th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change in Copenhagen
3.0 Green Financing for SMEs
Green Technology Financing Scheme (GTFS)
Objective
- to promote investments in GT : Minimises
degradation of environment
Has zero or low
Safe for use
;
green house gas (GHG) emission
; & promotes healthy and improved environment for all forms of life;
Conserves
use of Promotes use of
energy & natural resources
; or
renewable resources
.
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3.1 GTFS – Implementation Role BNM MGTC CGCMB MOF
• Act as coordinator for GTFS • Verify technical feasibility of project prior to financing processes by FIs.
• Upon approved, issue ‘Project Certification’ to applicant. • To manage, administer & monitor GTFS on behalf of MOF – include processing guarantee applications & claims.
•To submit monthly & quarterly reports on scheme performance to GreenTech Malaysia, BNM & MOF • To provide g’tee support & pay FIs claims on g’teed loans according to risk sharing / g’tee cover through CGC.
• To reimburse 2% interest subsidy to FIs for financing granted under scheme
Malaysian Green Technology Corporation (MGTC)
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3.2 GTFS – Performance
• Additional to GTFS, other financial assistance provided specifically for greentech companies in Malaysia are:
– Malaysia Debt Ventures: • aims to disburse RM300 mil. within a year from May 2011.
• for startups and existing companies that produce green tech products.
– Maybank MEACP Clean Energy Master Fund • aims to invest in diversified portfolio of clean energy projects in Asia-Pacific region.
• 10 year fund size of RM 1.6 bil. (effective Nov. 2011)
MEACP - Maybank Middle East & Asia Capital Partners Pte Ltd
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4.0 Challenges
Issues hampering the take-up rate of GTFS
•
Lack of familiarity
in GT among local companies and banks as GT is still new.
• R&D is
expensive and skills are difficult to obtain
for local companies compared with MNCs.
• Lack of track record or entrepreneurs have not secured
long term contracts
with reputable buyers
.
•
Government guarantee
of 60% still low for FIs.
5.0 Possible Solutions
Initiatives to Address Challenges
Green Procurement and IGEM
• Government will implement Green Procurement and PMS for Energy. • IGEM helps business matching for green tech entrepreneurs.
Education and awareness at all levels
• Country-wide seminars/workshops are continuously held with key stakeholders.
Training for FIs
• Address gap in bank officers’ skill sets and understanding.
• Program established by the Institute of Bankers Malaysia (professional & education body for banking and finance industry in Malaysia).
Monitoring of all policies and initiatives
• By Green Technology and Climate Change Council.
Chaired by the Prime Minister of Malaysia and supported by 8 Working Committees
IGEM - International Greentech & Eco Products Exhibition & Conference Malaysia
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6.0 Conclusion
• GT still in
infancy stage
in Malaysia. • Constantly seeking to
improve
experts in this field.
and
learn
from • CGC working closely with FIs and Government to
avail access to GTFS
.
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Thank you
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