| Work Detail |
The International Finance Corporation, or IFC, has partnered with Cagamas Berhad to promote green building finance and sustainability in Malaysia. IFC, which is the largest global development institution focused on the private sector in emerging markets and a member of the World Bank Group, signed a memorandum of understanding with Cagamas, Malaysia’s National Mortgage Corporation. The agreement aims to support Malaysia’s efforts to reach its sustainable development goals by encouraging more green investments in the housing and building sectors. The collaboration between IFC and Cagamas focuses on helping financial institutions develop and offer more green building finance products. These include green bonds, green credit lines, and financing for sustainable cooling technologies, which can help reduce energy use in buildings. Another important part of the partnership is to support banks and other financial institutions in identifying and managing environmental, social, and climate-related risks related to green building projects. IFC and Cagamas also plan to help build a pipeline of bankable green building projects. This would make it easier for financial institutions to offer financing for projects that meet sustainability standards. In addition to working with financial institutions, the collaboration aims to bring together both the public and banking sectors in Malaysia to talk about solutions to the challenges facing sustainable housing. By facilitating dialogue and knowledge exchange between these sectors, IFC and Cagamas hope to overcome barriers that prevent the growth of green housing in the country. Another goal of the partnership is to make green housing more affordable and accessible for lower-income groups and women in Malaysia. By growing the market for green mortgage products, they hope to bridge the gap in housing finance and ensure more people can benefit from sustainable homes. This aligns with Malaysia’s long-term goal of achieving net-zero emissions by 2050. Expanding green building finance is seen as an essential part of this effort, and both organizations believe the sector offers significant opportunities for growth. Judith Green, Country Manager for the World Bank Group in Malaysia, said that the collaboration with Cagamas would play a key role in meeting the country’s need for green housing. She also highlighted the importance of inclusivity, saying that the partnership aims to improve access to housing while reducing emissions. She noted that climate-smart investment in the building sector and strengthening the financial sector’s ability to support Malaysia’s climate goals are key priorities. Kameel Abdul Halim, President and Chief Executive Officer of Cagamas, said that this partnership marks an important step in their mission to promote green and affordable housing for all Malaysians. He explained that making the transition to green practices requires both financial resources and innovative approaches. Through this partnership with IFC, Cagamas aims to expand access to green mortgage options and work with financial institutions to create a more inclusive and sustainable housing market. He added that this would contribute to building a greener Malaysia. This partnership with Cagamas is IFC’s first engagement in the green building sector in Malaysia. IFC officially opened its office in Malaysia in 2023, and this collaboration marks an important milestone in its support for the country’s sustainability journey. Both organizations believe that by working together, they can help Malaysia achieve its climate commitments under the Paris Agreement. |
