Its head of policy and climate change, Lavanya Rama Iyer, quoting figures from Bank Negara Malaysia, said 89.7 per cent of total assets in the country are exposed to climate change.
She said the most vulnerable industries are banks, 10.3 per cent of whose total assets are potentially exposed to climate change, followed by construction (4.5 per cent), transportation (1.6 per cent), and primary agriculture and utilities (1.3 per cent each).
Speaking at a webinar organised by the Asian Institute of Chartered Bankers (AICB) titled "An Introduction - What is Sustainable Finance?", she said there is a strong need for more green investments.
She said the government has put a lot of emphasis and initiatives to support the United Nations’Sustainable Development Goals (SDGs) and create value for all, including tax incentives for green projects totalling more than RM2 billion for solar, biomass, recycling and integrated waste management projects.
Under Budget 2019, a RM1 billion Sustainable Development Financing Fund (SDFF) was established under Bank Pembangunan Malaysia Bhd and in Budget 2020, RM10 million has been allocated for a joint Government-UN SDG fund to co-finance SDG initiatives in Malaysia
The government has also increased the SDFF allocation to RM2 billion and an All-Party Parliamentary Group was formed last year, aiming to engage with more local communities to collectively achieve the SDGs.
In the corporate sector, the world's first Green Sukuk was launched in 2017 for a solar power plant in Sabah worth RM250 million, while CIMB Bank Bhd issued its first SDG bond in 2019, among others. - Bernama