The International Finance Corporation (IFC), a part of the World Bank Group has signed a Memorandum of Understanding with Cagamas Berhad, the National Mortgage Corporation of Malaysia, to promote increased green building finance in Malaysia and support the nation’s sustainable development objectives.
Supporting Climate-Smart Investments
This partnership assists financial institutions in promoting green investments in construction and housing by equipping them with the ability to craft sustainable finance solutions. These choices, green bonds, credit lines, and green cooling, assist Malaysia in creating a climate-friendly future while green housing becomes more feasible and available to many. The program also aims to assist financial institutions in developing a pipeline of attractive green projects as well as managing environmental, social, and climate-related risks efficiently.
Facilitating Financial Inclusion and Knowledge Exchange
An integral partnership element is building dialogue between the public and banking sectors to address impediments to sustainable housing growth. The project will also concentrate on promoting affordable and accessible green housing, especially for women and lower income groups. By developing a broader market for green mortgage products, the partnership is looking to bridge gaps in housing finance in Malaysia.
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Driving Malaysia’s Net-Zero Ambitions
Green building finance scaling is a key step toward meeting Malaysia’s ambition of net-zero emissions by 2050. This collaboration provides thrilling prospects, introducing new financing solutions that promote sustainability while supporting Malaysia’s economy and future resilience.
Judith Green, Country Manager for the World Bank Group in Malaysia, said, “We are delighted to collaborate with Cagamas on this engagement, which will play a critical role in supporting not only the increasing need for green housing in Malaysia, but also the country’s inclusivity agenda”
He added,”Together, we aim to improve access to housing and reduce emissions, encouraging climate-smart investment in the building sector, and strengthen the financial sector’s capacity to support Malaysia in achieving its climate commitments under the Paris Agreement”
This program is IFC’s first in Malaysia’s green building market since it set up a presence in the country in 2023.