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Green Technology Financing Scheme ( GTFS )
Under the GTFS , the Government provides a rebate of 2 per cent per annum on the interest fees charged for loans by financial institutions for the first seven years of the loan and guarantees 60 per cent of the green components cost .
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scheme previously . |
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GTFS 4.0 will also continue to provide the 60 per cent to 80 per cent government guarantee on the green component cost financed by Participating Financial Institutions ( PFIs ) as well as the rebate of 1.5 per cent per annum on interest / profit rate .“ |
This applies to producers of green technology ( RE generators ), green technology users , and energy efficiency-related projects .
Uptake of the GTFS scheme has been positive , resulting in the extension of RM2 billion of funds during Budget 2019 . Following the positive uptake of the GTFS scheme , the Ministry of Finance launched GTFS 3.0 in 2021 to support the RE projects further , followed by GTFS 4.0 in 2023 .
The government continues to support the development of green businesses with the reinstatement of the GTFS 4.0 up to RM1.0 billion for the period until December 31 , 2025 . The financing scheme will continue its support to six key sectors which include Energy , Manufacturing , Transport , Building , Waste and Water .
GTFS 4.0 will also continue to provide the 60 per cent to 80 per cent government guarantee on the green component cost financed by Participating Financial Institutions ( PFIs ) as well as the rebate of 1.5 per cent per annum on interest / profit rate .
One of the main enhancements of GTFS 4.0 is the inclusion of Housing Developer and Low Carbon Mobility Infrastructure to be eligible for financing investments related to Building and Transportation projects .
The Housing Developer and Low Carbon Mobility Infrastructure is eligible to obtain a maximum financing of RM100 million and RM50 million respectively . The financing scheme continues supports other categories such as Producer , User and ESCOs which have been introduced in the
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GTFS 4.0 serves distinct purposes for each sector :
• Producers of Green Technology : Obtain financial support for green product manufacturing , excluding large-scale solar projects and rooftop solar PV systems .
• Users of Green Technology : Secure financing for investments or assets related to energyefficient projects and / or energy performance contracting , with exclusions for projects falling under Net Energy Metering ( NEM ) and Self- Consumption ( SELCO ).
• Energy Services Companies ( ESCOs ): Secure funding for investments or assets linked to energy efficiency projects and / or energy performance contracting .
• Housing Developers : Secure financial assistance for constructing green buildings , with a specific focus on residential development , ensuring the selling cost does not exceed RM350,000 .
• Low Carbon Mobility Infrastructure : Obtain funding for electric vehicle charge point operators .
The implementation of GTFS 4.0 is important to ensure green technologybased projects continue to receive support , which will directly contribute to the growth and development of the green technology industry and also catalyst to the Climate Change policy .
Projects eligible for the scheme must align with government policies and targets addressing climate change , biodiversity , and environmental concerns . Key nationally determined contributions relevant to businesses include :
• Renewable Energy : Achieve a 31 per cent renewable energy installed capacity mix by 2025 and a 45 per cent reduction in emissions from the power sector by 2030 compared to the 2005 level .
• Energy Efficiency : Attain savings of 52,233 GWh of electricity from 2016 to 2025 , equating to an eight per cent reduction in electricity
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