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Climate impacts
in Malaysia
Climate change is significantly impacting Malaysia across various sectors.
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The 2021-22 floods alone caused significant damages to Malaysia:
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11 states in Malaysia affected
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RM6.1 billion in estimated economic losses
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about 400,000 people misplaced
50 deaths
Impacts of climate change
Climate finance refers to local, national or transnational financing that seeks to support mitigation and adaptation actions that will address climate change
- UNFCCC -
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Climate mitigation
RM1.2 to 1.3 trillion investments required by 2050 to achieve Malaysia's energy transition target
Malaysia's climate ambitions
Malaysia has set a comprehensive climate ambition, aiming to balance economic growth with environmental sustainability:
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Net Zero emissions by 2050​
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45% reduction in economy-wide carbon intensity against GDP by 2030, compared to 2005 levels
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70% installed renewable energy capacity by 2050
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Can blended finance be the solution?
Climate and nature projects
Blended finance is a strategic approach to mobilising private capital for projects with high social or environmental impact by combining public, philanthropic, and private funds. It aims to reduce investment risks, enhance returns, and encourage private sector participation in areas where commercial investments alone may not be viable.
Key features:
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Risk Sharing: Public or concessional funds absorb higher risks, making projects more attractive to private investors.
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Leverage: Uses limited public funds to unlock significantly larger amounts of private capital.
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Risk Mitigation Instruments: Tools such as guarantees or insurance that help reduce perceived risks for private investors, encouraging their participation in projects they might otherwise avoid.
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Technical Assistance: Support provided to enhance the capacity of investees, ensuring projects are viable and meet investment standards.
CFIL is committed to exploring blended financing solutions and innovative structures to effectively unlock and accelerate the mobilisation of private capital for climate projects.
Example of a blended finance structure
