Malaysian Green Technology and Climate Change Centre

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Member Overview

Malaysian Green Technology and Climate Change Centre (MGTC), formerly known as Malaysian Green Technology Corporation or GreenTech Malaysia, is an agency under the purview of the Ministry of Environment and Water, Malaysia mandated to lead the nation in the areas of green growth, climate change mitigation, and climate resilience and adaptation.

Under green growth, MGTC focuses on three key areas:

Green incentives & certification

Green incentives
Green financing
Green Labeling & certification

Green advisory & capacity building

Green advisory & consultancy
Roadmap/action plan development
Green skills & competency development

Green promotion & investment

Green investment
Business matching
Green business promotion & exhibition

Under its expanded scope, MGTC now focuses on climate change mitigation and climate change adaptation through the following roles:

Policy analysis
National reporting
National programs coordination
- Climate change mitigation
- Climate change adaptation
Focal point for climate change mitigation & adaption data
Communication, Education, and Public Awareness (CEPA)

Activities

In 2010, the Malaysian government introduced the Green Technology Financing Scheme (GTFS), administered by MGTC to fund green technology–related ventures providing easier access to financing from the market. The GTFS was initially set to last through 2015 and was extended first through 2017 and again through 2020. These extensions reflect the government’s commitment to pursuing the development of the green technology sector for the nation’s socioeconomic growth.

The loan guarantee scheme offers a rebate of 2 percent per annum on interest or profit rates charged by financial institutions while also providing a government guarantee of 60 percent for the green cost of the financed amount. The GTFS extension through 2020 included approval that an addition MYR 2 billion of loans to be approved through the Scheme, on top of the MYR 3.5 billion already approved. The GTFS has encouraged companies to undertake large-scale green projects contributing to a more positive impact to the local green market. As the nation’s lead catalyst for green technology deployment, MGTC plays a determining role by continuing to introduce feasible financial mechanisms to support green growth scaling up investments.

LEARN MORE ABOUT MGTC'S TRANSACTIONS

Impact

Since its inception in 2010, as at May 2020, the GTFS has successfully approved a total of 349 projects with a total financing amount of about MYR 4.5 billion or US$ 1.04 billion. While the Scheme covers projects in various sectors such as energy, building, transport, waste, and water, as well as the manufacturing sector, the bulk of projects approved are in the renewable energy sector, which accounted to more than 80 percent of the loans approved. The approved projects are anticipated to contribute to the avoidance of more than 3.7 million tonnes of CO2 equivalent every year. The GTFS has been instrumental in encouraging the participation of private financial institutions to invest in green ventures, and it has brought together a total of 29 banks and financial institutions to participate in the Scheme. With increasing numbers of entrepreneurs venturing into the green technology sector, GTFS will continue to be an important enabler bridging financing gaps and empowering emerging green businesses in the country.