Malaysia has unveiled its Climate Finance Innovation Lab (CFIL), a major initiative aimed at accelerating the development and deployment of innovative financial solutions for climate resilience.
The announcement was made at the Sasana Symposium 2025, hosted by Bank Negara Malaysia (BNM), as part of the broader sustainability strategy driven by the Joint Committee on Climate Change (JC3).
The CFIL is designed as a collaborative platform bringing together public institutions, private investors, and philanthropic organisations. It will focus on identifying, co-developing, and implementing solutions that address climate-related challenges across four key themes: energy transition and green innovation, sustainable agriculture, circular economy and sustainable cities, and nature-based solutions including biodiversity protection.
Administered by Bank Pembangunan Malaysia Berhad (BPMB), CFIL will adopt a modular model to support continuous ideation and development of financial instruments. Through this model, eligible project owners will be granted access to funding, technical guidance, and stakeholder networks to help operationalise their climate-focused projects.
BNM assistant governor and JC3 co-chair Madelena Mohamed said, “There is an urgent need to scale up climate finance and nature-positive actions in Malaysia. Greater private sector involvement is crucial for accelerating our climate journey towards sustainable development. The CFIL partnership aims to strengthen public-private-philanthropic climate finance through blended finance structures, innovative mechanisms and Islamic finance instruments. We call on all stakeholders to partner with us in this journey. Together, we can drive impactful change and build a resilient Malaysia.”
Securities Commission Malaysia executive director and JC3 co-chair Salmah Bee Mohd Mydin added, “We envision CFIL as an incubator for catalytic projects critical to achieving the national climate goals, but we face challenges securing financing through existing channels. With the support of JC3 and the financial industry, CFIL is positioned to connect project owners with diverse funders to scale up climate and nature-related solutions in Malaysia.”
The lab builds on lessons from earlier pilot projects and is part of JC3’s broader mission to embed climate risk considerations and sustainability into Malaysia’s financial system. With rising demand for climate finance, CFIL is positioned to play a central role in enabling Malaysia’s transition to a low-carbon, climate-resilient economy.
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