GreenTech to hit RM3.5b financing mark next year

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KUALA LUMPUR — GreenTech Malaysia (GreenTech) is targeting to approve a further RM800 million in financing by next year under its Green Technology Financing Scheme (GTFS), to reach the RM3.5 billion total.

The government initiated GTFS in 2012 with a goal to finance RM3.5 billion of green projects, and Green Tech chief executive officer Ahmad Hadri Haris said the agency has already approved RM2.7 billion worth of financing since then.

“The majority of projects approved for financing are based in the energy sector such as solar, biomass, biogas or small hydro, and the rest are involved in green transport, energy efficient building and waste management,” he said.

GTFS-approved projects receive incentives such as 2% interest rate and a 60% government guarantee to enable their projects to be more viable.

The scheme only guarantees projects up to RM50 million, so if a project is worth RM100 million, GTFS can only guarantee 60% of RM50 million, so the net guarantee is really only 40%.

This applies for production or manufacturing projects, whereas for end-user projects, the maximum GTFS guarantee is only RM10 million.

The agency has also set an ambitious 20-2020 goal for government green procurement.

“We are targeting 20% of overall government procurement to be green by 2020, from 1.1% last year. GreenTech is now working with 10 ministries as a starting point and will expand our efforts to all ministries as procurement gathers steam,” Ahmad Hadri said.

For its internal MyHijau mark and directory certifying “green” products and services, the agency is hoping to more than quadruple constituents from 239 currently to over 1,000 certified products and services by year-end.

In its bid to convince heads of government-linked corporations and agencies to buy into the electric vehicle segment, GreenTech is also targeting to bring in 100 units of Tesla Model S this year and lease them to top management.

It has already ordered 20 cars and expects these to have a trickle-down effect in green purchasing once executives in top management are convinced of the Tesla’s savings.

To support these and other electric vehicles in the market, GreenTech is also looking to set up 300 ChargEV charging stations by year-end from 35 currently.

Under the 11th Malaysia Plan, the agency provides conditional energy audit grants for any industry which consumes more than three million kilowatt hours for six consecutive months, for a three-year period from this year to 2018.

GreenTech aims to approve 77 energy audits by year-end under this grant. So far, it has approved 10 audits from 25 applications.