LocationsClimate Finance Network
Financing a climate-resilient future in Malaysia
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)
The UNDP Climate Finance Network (CFN) supports Asia-Pacific countries bridge the gap between climate goals and the investment needed to reach them. As a regional platform, CFN provides technical and policy support to integrate climate into public finance, mobilize private and innovative capital, and create the enabling environment required for lasting impact through regional knowledge exchange and peer learning. The initiative is supported by the UK FCDO Climate Action for a Resilient Asia (CARA) programme.
What we do
The challenge: Developing the new financial instruments to accelerate and fund Malaysia's national green transition.
The approach: Support the issuance of thematic green bonds through a Technical Assistance facility, alongside building platforms like the MyClimate FinHub to connect green businesses with investors.
The impact: Expanded pathways for private capital to flow into climate action, supporting green innovation and support to impacted communities.
The challenge: Scoping out the foundational conditions needed to unlock functional blended finance vehicle(s) in Malaysia through identifying market pipelines, bankability, legal/regulatory gaps, and governance structures.
The approach: Conduct a pre-feasibility study with key partners to assess priority climate sectors, financial structuring options, and applying Impact Measurement and Management (IMM) framework. Facilitate the ideation and development of innovative de-risking mechanisms for specific climate sub-sectors.
The impact: A clear roadmap and risk mitigation strategy for a Blended Finance Facility that can crowd in concessional and private capital toward Malaysia's climate priorities.
The challenge: Systematically tracking public expenditures to better manage climate risks and attract green investment at the sub-national level.
The approach: Support to Johor State in designing and implementing a specialized disaster and climate budgeting tagging system.
The impact: Enhanced fiscal transparency and greater capacity to attract ESG-focused investment while strengthening local disaster resilience.
The challenge: Translating fragmented data and fast-evolving climate finance markets into evidence policymakers and practitioners can act on.
The approach: Produce landscape reports, market assessments, and knowledge products that dissect specific areas of climate finance, map instruments and support effective mobilisation of sustainable finance.
The impact: A stronger evidence base that shapes policy design and positions UNDP as a trusted knowledge partner in Malaysia's sustainable finance agenda.
In-Person Highlights
Our impact in action
Building the climate MSME ecosystem
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.
Climate Finance Innovation Lab (CFIL)
Through the Climate Finance Innovation Lab (CFIL), a cohort of 15 climate ventures is supported to strengthen their business models and project readiness. The 30 ventures that applied to the lab represent a total financing request of RM 4 billion.
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.
Related Publications & Knowledge Products
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)
