The Budget 2020 announcement in October saw finance Minister Lim Guan Eng announcing several green tax measures to help the nation achieve its target of 20% renewable energy mix by 2025 when tabling the Budget 2020 at Parliament on Friday, October 11th. The Green Income Tax Exemption (GITE) and Green Investment Tax Allowance (GITA) has been renewed for another 3 years and has now been extended until 31 December 2023. Check out our previous article here that explains the Green Tax Incentive.
Additionally, here are some other funds available in Malaysia.
The Green Climate Fund (GCF)
The Green Climate Fund (GCF) was established in 2011 as an operating entity of the financial mechanism following the COP16 (2010) decision. The mandate of the GCF is for the Nation Framework Convention on Climate Change (NFCCC) and is dedicated to climate change mitigation and adaptation. The fund is based on the principle of assessed contribution through grants, loans, equities or guarantees. The Fund aims for a 50:50 balance between mitigation and adaptation investments over time. It also aims for a floor of 50% of the adaptation allocation for particularly vulnerable countries. GCF is unique in its ability to engage directly with both the public and private sectors and has the capacity to bear significant climate-related risk, allowing it to leverage and crowd in additional financing.
Green Technology Financing Scheme (GTFS)
Another financing scheme that is available in Malaysia is the Green Technology Financing Scheme (GTFS) that aims to promote Green Technology by providing loans/ financing to companies that supply and utilise Green Technology. The objective of this fund is to minimise the degradation of the environment through zero or low greenhouse gas (GHG) emissions. The six sectors that are eligible for GTFS funding are as follows: energy, water, building & township, transport, waste and manufacturing. The financing offer and eligibility is summarized in the table below:
References:
- The Star Online. Budget 2020: Green tax exemptions extended to 2023. Retrieved from: https://www.thestar.com.my/news/nation/2019/10/11/budget-2020-green-tax-exemptions-extended-to-2023
- Green Climate Fund. Retrieved from: https://www.greenclimate.fund/who-we-are/about-the-fund
- Green Technology Financing Scheme. Retrieved from: https://www.gtfs.my/
