Advertisement

Green Finance in Malaysia

Barriers and Solutions
  • Behnaz SabooriEmail author
  • Azlinda Azman
  • Maryam Moradbeigi
Living reference work entry
Part of the Sustainable Development book series (SD)

Abstract

There is growing concern about a secure and sustainable energy future. An emphasis on long-term energy security, sustainable economic growth, and controlling greenhouse gas emissions has made Malaysia one of the fastest-growing countries in terms of renewable energy sources. Recently, Malaysia has made considerable progress toward renewables, with incentives provided over the years reflecting the government’s efforts to develop and support the sector. As part of its intent to invest in a green economy, Malaysia, like many countries, has enhanced its efforts, incentives, standards, awareness, and policies regarding green finance. Despite all the developments and progresses, the country requires more support from the government in motivating people to use renewables and developing new green projects.

Keywords

Malaysia Renewable energy Green technology Financial incentives Government policy 

JEL Classification

Q54 Q55 Q42 Q28 

References

  1. Abdul Malek ABM, Hasanuzzaman M, Rahim NA, Turki YAA (2017) Techno-economic analysis and environmental impact assessment of a 10 MW biomass-based power plant in Malaysia. J Clean Prod 141:502–513.  https://doi.org/10.1016/j.jclepro.2016.09.057CrossRefGoogle Scholar
  2. Adib R, Murdock HE, Appavou F, Brown A, Epp B, Leidreiter A, ... Farrell TC (2016) Renewables 2016 global status report. REN21Google Scholar
  3. Aghamohammadi N, Reginald SS, Shamiri A, Zinatizadeh AA, Wong LP, Sulaiman NMB (2016) An investigation of sustainable power generation from oil palm biomass: a case study in Sarawak. Sustainability 8(5):416CrossRefGoogle Scholar
  4. Ali R, Daut I, Taib S (2012) A review on existing and future energy sources for electrical power generation in Malaysia. Renew Sustain Energy Rev 16(6):4047–4055CrossRefGoogle Scholar
  5. Chin M (2011) Biofuels in Malaysia. https://www.cifor.org/publications/pdf_files/WPapers/WP64CIFOR.pdf. Accessed 8 Nov 2017
  6. Croce R, Kaminker C, Stewart F (2011) The role of pension funds in financing green growth initiatives. Organisation for Economic Co-operation and Development Publishing, Paris. www.oecd.org/pensions/private-pensions/49016671.pdf. Accessed 12 Nov 2016
  7. Goh T (2014) Greening businesses. Smart Investor 288:21–24Google Scholar
  8. Energy Information Administration (EIA) (2014) “Annual Energy Outlook (2014),” EIA, US Department of Energy, Washington, DC, USAGoogle Scholar
  9. Green Tech Malaysia (2017) Green technology financing scheme. www.gtfs.my/page/key-areas-and-projects-criteria. Accessed 16 Jan 2017
  10. GreenTech Malaysia (Malaysia Green Technology Corporation) (2016) Annual report 2016. www.greentechmalaysia.my/wp-content/uploads/2016/08/GreenTech-Annual-Report_LR-1.pdf. Accessed 28 Dec 2016
  11. Haris AH (2010) Industrial briefing on feed-in tariff procedures industrial briefing on feed-in tariff proceduresGoogle Scholar
  12. Hasan AF (2009) Energy efficiency and renewable energy in Malaysia. Malaysia Energy Commission, SelangorGoogle Scholar
  13. Hitam S (1999) Sustainable energy policy and strategies: a pre-requisite for the concerted development and promotion of the renewable energy in Malaysia. http://unpan1.un.org. Accessed 8 Oct 2018
  14. Ho L (2016) Wind energy in Malaysia: past, present and future. Renew Sustain Energy Rev 53:279–295.  https://doi.org/10.1016/j.rser.2015.08.054CrossRefGoogle Scholar
  15. Ibrahim K, Ahmad-Shabudin AF, Koshy CK, Asrar GR (2016) A new framework for integrated climate finance and inclusive responses to sustainable development in Malaysia. Geomatics Nat Hazard Risk 7(6):1754–1768CrossRefGoogle Scholar
  16. Iea.org (2006) National biofuel policy of Malaysia. https://www.iea.org/policiesandmeasures/pams/malaysia/name-147424-en.php. Accessed 8 Nov 2017
  17. Iea.org (2014) Renewable energy policy and action plan. https://www.iea.org/policiesandmeasures/pams/malaysia/name-24985-en.php. Accessed 8 Nov 2017
  18. Jacobs J (2017) Green bond rising. The Edge Malaysia, May 4. http://www.theedgemarkets.com/article/cover-story-green-bond-rising. Accessed 8 Oct 2018
  19. Lee CW, Zhong J (2015) Financing and risk management of renewable energy projects with a hybrid bond. Renew Energy 75:779–787CrossRefGoogle Scholar
  20. Machol B, Rizk S (2013) Economic value of US fossil fuel electricity health impacts. Environ Int 52:75–80CrossRefGoogle Scholar
  21. Malaysia Energy Statistics Handbook (2016) Suruhanjaya Tenaga, Energy Commission, https://meih.st.gov.my/documents/10620/57af5e2a-7695-4618-a111-4ba0a49ba992
  22. Malaysian Investment Development Authority (2016) MIDA 2016Google Scholar
  23. Malaysian Investment Development Authority (2017) MIDA 2017Google Scholar
  24. Malek B (2010) National renewable energy policy & action plan. http://www.malaysiangas.com/portal/document/publication/1281507312_KeTTHA_Ene.pdf. Accessed 8 Nov 2017
  25. Mekhilef S, Safari A, Mustaffa WES, Saidur R, Omar R, Younis MAA (2012) Solar energy in Malaysia: current state and prospects. Renew Sustain Energy Rev 16(1):386–396CrossRefGoogle Scholar
  26. Mekhilef S, Barimani M, Safari A, Salam Z (2014) Malaysia’s renewable energy policies and programs with green aspects. Renew Sustain Energy Rev 40:497–504CrossRefGoogle Scholar
  27. Ministry of Energy, Green Technology and Water (2008) National renewable energy policy and action plan. http://seda.gov.my/go-home.php?omaneg=00010100000001010101000100001000000000000000000000&s=31. Accessed 18 June 2018
  28. MyHIJAU (2016) Guidelines for green technology tax incentive, updated June 2016.Google Scholar
  29. Ozturk M, Saba N, Altay V, Iqbal R, Hakeem KR (2017) Biomass and bioenergy: an overview of the development potential in Turkey and Malaysia. Renew Sustain Energy Rev 79:1285–1302.  https://doi.org/10.1016/j.rser.2017.05.111CrossRefGoogle Scholar
  30. Peninsular Malaysia Electricity Supply Industry Outlook (2016) Suruhanjaya Tenaga, Energy Commission. https://www.st.gov.my/ms/contents/publications/outlook/Outlook%20PM%202016.pdf
  31. Petinrin JO, Shaaban M (2015) Renewable energy for continuous energy sustainability in Malaysia. Renew Sustain Energy Rev 50:967–981CrossRefGoogle Scholar
  32. Ratings Agency Malaysia (RAM) (2018) Press release, Climate Bonds Initiative’s 2018 Annual conference, London, 20 March. https://www.ram.com.my/pressrelease/?prviewid=4546
  33. Richter A (2017) 30 MW Apas Kiri geothermal project in Malaysia on track to operate in 2019. Think GeoEnergy − Geothermal Energy News. http://www.thinkgeoenergy.com/30-mw-apas-kiri-geothermal-project-in-malaysia-on-track-to-operate-in-2019/. Accessed 28 Nov 2017
  34. Securities Commission Malaysia (2017) The ASEAN capital markets forum collaborates with International Capital Market Association to introduce ASEAN green bond standards. www.sc.com.my/highlight/the-asean-capital-markets-forum-collaborates-with-international-capital-market-association-to-introduce-asean-green-bond-standards/. Accessed on 20 Mar 2017
  35. Sulaiman J, Azman A, Saboori B (2014) Development of solar energy in Sabah Malaysia: the case of Trudgill’s perception. Int J Sustain Energy Environ Res 3(2):90–99Google Scholar
  36. Sustainable Energy Development Authority (SEDA) (2016) Annual report 2016. SEDA, Malaysia. http://www.seda.gov.my/. Accessed 10 Jan 2017
  37. Sustainable Energy Development Authority (SEDA) (2017) FiT dashboard. http://www.seda.gov.my/. Accessed 10 Jan 2017
  38. Suzuki K, Tsuji N, Shirai Y, Hassan MA, Osaki M (2017) Evaluation of biomass energy potential towards achieving sustainability in biomass energy utilization in Sabah, Malaysia. Biomass Bioenergy 97:149–154.  https://doi.org/10.1016/j.biombioe.2016.12.023CrossRefGoogle Scholar
  39. Tenaga National Berhad (2016) Annual report 2016Google Scholar
  40. Wu Q, Qiang TC, Zeng G, Zhang H, Huang Y, Wang Y (2017) Sustainable and renewable energy from biomass wastes in palm oil industry: a case study in Malaysia. Int J Hydrogen Energy.  https://doi.org/10.1016/j.ijhydene.2017.03.147
  41. Yoshino N, Taghizadeh-Hesary F (2017) Alternatives to bank finance: role of carbon tax and hometown investment trust funds in development of green energy projects in Asia. ADBI working paper 761. Asian Development Bank Institute, Tokyo. https://www.adb.org/publications/alternatives-bank-finance-role-carbon-tax-and-hometown-investment-trust-fundsGoogle Scholar
  42. Yoshino N, Taghizadeh-Hesary F (2018) Alternatives to private finance: role of fiscal policy reforms and energy taxation in development of renewable energy projects in financing for low-carbon energy transition. In: Anbumozhi V (ed) Financing for low-carbon energy transition. Springer, Singapore, pp 335–357CrossRefGoogle Scholar
  43. Yusoff S, Kardooni R (2012) Barriers and challenges for developing RE policy in Malaysia. http://www.ipcbee.com/vol28/2-ICFEE2012-F003.pdf. Accessed 8 Nov 2017

Copyright information

© Asian Development Bank Institute 2019

Authors and Affiliations

  • Behnaz Saboori
    • 1
    Email author
  • Azlinda Azman
    • 2
  • Maryam Moradbeigi
    • 3
  1. 1.Department of Economics and AccountingSouth Tehran Branch, Islamic Azad UniversityTehranIran
  2. 2.School of Social SciencesUniversiti SainsPenangMalaysia
  3. 3.Taylor’s Business SchoolTaylor’s UniversitySelangorMalaysia

Personalised recommendations