The International Finance Corporation (IFC) and Cagamas Berhad, Malaysia’s National Mortgage Corporation, have signed a memorandum of understanding to advance green building finance in Malaysia. The collaboration aims to support climate-smart investments in the housing and building sectors while strengthening the capacity of financial institutions to develop and issue green finance products.
The partnership will focus on promoting financial instruments such as green bonds, green credit lines, and funding for sustainable cooling technologies. It also seeks to help financial institutions build a pipeline of viable green projects, manage environmental and climate-related risks in the building sector, and facilitate dialogue between the public and banking sectors to address barriers to sustainable housing development.
A key objective of the initiative is to make green housing more accessible and affordable, particularly for lower-income groups and women. Expanding Malaysia’s green building finance market is seen as a crucial step towards achieving the country’s net-zero emissions target by 2050.
Judith Green, Country Manager for the World Bank Group in Malaysia, highlighted the importance of the initiative in addressing both environmental and social priorities. “Together, we aim to improve access to housing, reduce emissions, and encourage climate-smart investment in the building sector while strengthening the financial sector’s role in supporting Malaysia’s climate commitments under the Paris Agreement,” she said.
Cagamas President and Chief Executive Officer, Kameel Abdul Halim, noted the need for financial resources and innovative approaches to drive the transition to sustainable housing. “Through this partnership, we aim to expand access to green mortgage options and work with financial institutions to create a more inclusive and sustainable housing market,” he said.
This marks IFC’s first engagement in Malaysia’s green building sector since establishing a presence in the country in 2023. The collaboration is expected to contribute to the broader sustainable development agenda and enhance the role of financial institutions in supporting the transition to a low-carbon economy.
