LocationsClimate Finance Initiatives in UNDP Malaysia, Singapore and Brunei Darussalam
Advancing inclusive climate finance for a resilient future
Malaysia's climate financing gap is immense. It is projected that Malaysia will require about US$570 billion (RM2.4 trillion) in cumulative investments over the next two decades to meet its long-term climate and development goals. To help bridge this gap, UNDP Malaysia is at the forefront of building a sustainable and inclusive climate finance ecosystem in Malaysia, combining systemic policy reform, private sector mobilisation, and on-the-ground capacity support.
This work is made possible with the generous support of multiple donors, including the UK Foreign, Commonwealth and Development Office (FCDO), Sweden through the Swedish International Development Cooperation Agency (SIDA), The Norwegian Agency for Development Cooperation etc on key initiatives below:
Climate Finance Network (CFN)
Established as a multi-stakeholder platform to strengthen coordination across the climate finance ecosystem, CFN brings together financial institutions, policymakers, and partners to address systemic barriers. It promotes knowledge exchange, develops shared frameworks, and supports the co-creation of solutions to scale climate investments.
UNDP, through its Climate Finance Network and UNCDF, hosted a two-day regional dialogue to help Asia-Pacific countries scale blended finance for inclusive climate action. Supported by Sweden (Sida) and the UK's FCDO CARA Programme, the event brought together over 70 representatives from governments, financial institutions, and civil society to share best practices. The discussions focused on using blended finance and its strategic use of public capital to mobilise private investment to close the funding gap between countries' climate commitments and the capital needed to achieve them.
As part of this effort, CFN supported regional engagement through the Inclusive Climate Finance Dialogue for a Resilient Asia-Pacific (26–28 August 2025), which convened stakeholders to advance inclusive financing approaches, strengthen regional collaboration, and explore innovative pathways to mobilise climate finance.
What is MyClimate FinHub?
MyClimate FinHub is UNDP Malaysia’s ecosystem platform dedicated to supporting MSMEs working in the climate space. It brings together climate businesses, financiers, technical experts, mentors and intermediaries to foster collaboration and unlock climate financing opportunities. The FinHub helps sustainability-driven businesses access funding, gain investor readiness, and connect to market and technical partners so they can grow resiliently and responsibly.
Highlights
Pre-Feasibility Study on Blended Finance Facility
The pre-feasibility study in collaboration with the World Bank Group (WBG) aims to surface the foundational conditions necessary for a functional Blended Finance Facility (BFF) in Malaysia. At the output level, the study will cover market and pipeline analysis across priority climate sectors, bankability assessments, financial structure evaluations benchmarked against market data, legal and regulatory mapping, and governance design with accompanying risk mitigation strategies. The study will include comprehensive development of an Impact Measurement and Management (IMM) framework aligned to the BFF structure, drawing on the Scorecard framework to identify relevant impact variables such as degraded land restored/rehabilitated, job creation and emissions metrics.
Climate Budget Tagging at Subnational
The project aims to collaborate with subnational leader in climate fiscal governance, with the disaster risk reduction and climate change adaptation budget tagging (DCBT) system strengthening the state's ability to direct public resources toward their key focus areas such as flood resilience, climate-smart infrastructure, and social protection. Enhanced climate expenditure transparency is also expected to improve state’s attractiveness to ESG-focused investors which creates economic opportunities through unlocking financing for sectors such as renewable energy, green data centres, and climate-smart agriculture.
Climate Venture Scaler
The Climate Venture Scaler is a flagship UNDP initiative under the CFN, implemented in partnership with Impact Investment Exchange (IIX), that accelerates growth-stage climate ventures across Southeast Asia — with an initial focus on Cambodia, Laos, and Malaysia. The programme supports enterprises in the climate space to strengthen their business models, improve financial readiness, and connect directly with investors, driving climate resilience, green innovation, and inclusive economic growth with a cross-cutting lens on gender equality.
Climate Action for Resilient Asia (CARA)
CARA is a 7-year programme that will work with partners to deliver projects in areas known to strengthen climate resilience. This includes funding projects that mobilize climate finance, enhance water security, conserve natural ecosystems and biodiversity, and help vulnerable communities lead local adaptation efforts.
Scaling Climate Adaptation Financing in Malaysia: Instrument Development Technical Assistance Facility
- Promote climate adaptation finance and investments with increased access and volume of finance (private, international and other) for climate adaptation initiatives in Malaysia by providing advisory support to GSS+ bond/sukuk issuances with a focus on climate adaptation to financial institutions and corporates.
- Strengthened ecosystem capacity in climate adaptation planning, financing, and implementation among organisations and local level institutions with new or revised climate adaptation policies environment by consolidating learnings to fill any policy gap.
Related publications
Get Involved
UNDP invites partners across sectors to collaborate in scaling climate finance and accelerating Malaysia’s low-carbon transition.
- Receive advisory support to strengthen investment readiness.
- Connect with investors, financial institutions, and ecosystem partners.
- Access MyClimate FinHub resources and programmes.
- Identify investment-ready climate projects and businesses.
- Collaborate with ecosystem partners to scale sustainable finance.
- Support the growth of Malaysia's climate finance market.
- Participate in policy dialogue and knowledge exchange.
- Collaborate on climate finance initiatives and capacity building.
- Share best practices and strengthen coordination across sectors.
- Contribute to the development of an inclusive climate finance ecosystem.
For collaboration opportunities, please contact: le.faye.goh@undp.org (Sustainable Finance Analyst)
