Source: Eco-Business
Bankable projects with clear ROI metrics vital to plug Malaysia’s RM130 billion adaptation deficit
Kuala Lumpur, 24 July: Climate finance will need to shift towards strengthening market capacity and commercial viability to help Malaysia meet its urgent adaptation needs but is strained by a lack of bankable projects, clear metrics and project fragmentation, said regional leaders at the flagship www.eco-business.com/events/unlocking-capital-for-sustainability-2026-malaysia/” style=”color:#1155cc;text-decoration:underline;”>Unlocking capital for sustainability summit in Malaysia yesterday.
Malaysia requires approximately US$32.56 billion (RM133 billion) in disaster risk reduction and resilience in the coming decades to cope with mounting risks such as floods, droughts, coastal degradation and nature loss.
Edward Vrkić, resident representative for UNDP Malaysia, Singapore and Brunei Darussalam, said there is a “mismatch between what investors are looking for and how climate projects are currently structured.”
“Nature and climate adaptation is competing for capital against a mitigation story that sells better. Regulatory drivers, ESG pressure and familiar deal structures channel private capital into renewables and electric vehicles, leaving adaptation largely public-led. At the same time, Malaysia’s National Adaptation Plan (MyNAP) remains under development, so financing lacks a unifying framework and a prioritised project list,” he said during his keynote address.
Aligning climate, economic and business realities
H.E. Ajay Sharma, British high commissioner to Malaysia, said in his special address: “One of the roles of international financiers is to address the risks preventing private capital from flowing into viable opportunities. That is why our international climate finance is now more focused on helping markets to work better, strengthening project bankability – especially among SMEs, and helping private capital flow at scale and to the right places.”
“This includes programmes such as the UK Partnering for Accelerated Climate Transitions (UK PACT) to help countries’ transition to a low carbon economy, the Climate Finance Accelerator to support climate enterprises become investment ready and mobilising investments through vehicles such as British International Investment and MOBILIST.”
Meanwhile, companies that treat projects such as decarbonisation as a compliance obligation frequently fall behind, missing out on new and lucrative opportunities, Kati Ferry, chief executive officer for EUROCHAM Malaysia, said.
“The companies that treated it as an engineering, investment and market opportunity began developing cleaner technologies, reducing energy use, redesigning manufacturing processes and creating new products and services. Those are often the companies now winning new contracts, attracting talent, improving efficiency and preparing themselves for the markets of the future,” she said in her closing address.
This includes the TechnipFMC facility in Johor which, though lacking a major upfront investment, became feasible due to a financing model which matched the operational needs of the customer, she said.
“The capital was available. The technology was available. What unlocked the project was the right commercial agreement.”
Asia setting the pace for the transition
Organised by Eco-Business in partnership with the United Nations Development Programme (UNDP), alongside strategic partner, AmBank Group, and supporting partners, Control Union Malaysia, Roundtable on Sustainable Palm Oil (RSPO) and TOMRA, the 2026 edition of Unlocking capital for sustainability – Malaysia convened over 230 delegates from government, finance and industry under the theme of “Financing growth for a resilient economy”.
Jessica Cheam, founder and CEO for Eco-Business, said Asia is proving to be a region where sustainable finance is built and not just discussed, with Malaysia itself writing the rules in this space before the investments arrive.
“It has been so encouraging to see that Malaysia has built on the momentum of the Asean chairmanship last year and moved from rhetoric to regulation. The Securities Commission’s Capital Market Masterplan 2026-2030 now targets RM90 billion to RM100 billion in cumulative sustainability financing by the end of the decade,” she said in her opening remarks.
“Alongside it, a National Carbon Market Policy has laid the groundwork for a national carbon credit ecosystem, ahead of a carbon tax on iron, steel and energy that government has, for now, chosen to delay given the economic headwinds.”
Fostering connections through tailored, impact-driven sessions
The sustainable finance forum also featured curated dialogues on nature and biodiversity’s role in shaping finance and business strategy, led by PwC Malaysia and AmBank Group; financing Malaysia’s Transitioning Industrial Clusters, led by MyDIGITAL Corporation and PEMANDU Associates and attended by Datuk Dr Haji Hazland Haji Abang Hipni, deputy minister for Energy and Environmental Sustainability Sarawak; helping Malaysian SMEs turn climate risks into business opportunities, led by Funding Societies Malaysia and Generali Insurance Malaysia;
and financing the shift from a linear to a circular economy, featuring supporting partner TOMRA.
It also hosted an exclusive roundtable the next day on the topic of www.eco-business.com/events/making-circularity-work-aligning-policy-markets-and-stakeholders/” style=”color:#1155cc;text-decoration:underline;”>”Making circularity work: Aligning policy, markets and stakeholders”, featuring the participation of the Ministry of Housing and Local Government (KPKT) and exploring how policy, capital and disclosure frameworks can align for circular economy adoption.
Unlocking capital for sustainability is hosted in six markets across Asia in 2026. In addition to Kuala Lumpur, the flagship forum was hosted in Jakarta in June and will be hosted Manila in August, Singapore and Bangkok in September and Hong Kong in November.
For more information on next month’s Philippines’ forum, visit the www.eco-business.com/events/unlocking-capital-for-sustainability-2026-philippines/” style=”color:#1155cc;text-decoration:underline;”>Eco-Business event page.
About Eco-Business
Established in 2009, Eco-Business is Asia Pacific’s leading business intelligence and advisory platform dedicated to advancing sustainable development. We produce trusted, high-quality multimedia content exploring the world’s most pressing challenges—and the solutions driving change. Our work is aligned with the 17 United Nations Sustainable Goals (SDGs) and supported by a 15-year archive of news, analysis, research, and events on sustainable development topics. Headquartered in Singapore, we have a presence in Manila, Kuala Lumpur, Jakarta, Bangkok, Hong Kong, Beijing, and London.
For more information, visit www.eco-business.com.
United Nations Development Programme (UNDP)
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet.
Learn more at www.undp.org and www.undp.org/malaysia” style=”color:#1155cc;text-decoration:underline;”>www.undp.org/malaysia.
About Unlocking capital for sustainability
Unlocking capital for sustainability is an annual flagship event organised by Eco-Business in partnership with UNEP FI that brings together high-level decision makers in finance, business, government and civic society to discuss and commit to actionable initiatives that mobilise the capital markets for sustainable development projects. Our full list of knowledge partners – past and present – can be found at www.unlockingcapitalforsustainability.com.