COVER STORY 15
November-December. 2025 | @ green
COVER STORY 15
Financing net zero
� KWAP launched Dana Iklim +, a RM2 billion climate investment fund at KLSS 2025, held in conjunction with IGEM 2025, reinforcing Malaysia’ s commitment to sustainable finance.
WHILE the International Greentech & Eco Products Exhibition & Conference Malaysia( IGEM) 2025 brought together technological breakthroughs, green innovations, and global climate solutions under one roof, the event also served as a platform for a major financial milestone in Malaysia’ s sustainability journey.
During the Kuala Lumpur Sustainability Summit( KLSS) 2025, held in conjunction with IGEM, Kumpulan Wang Persaraan( Diperbadankan)( KWAP) introduced Dana Iklim +, a RM2 billion climate-focused investment fund designed to accelerate the nation’ s low-carbon transition.
Launched on the sidelines, the RM2 billion initiative was officiated by Minister of Plantation and Commodities and Acting Minister of Natural Resources and Environmental Sustainability, Datuk Seri Johari Abdul Ghani. The launch reinforced IGEM’ s broader message this year— that achieving
� KWAP aims to reduce up to one million tonnes of CO₂e through the fund’ s climatealigned investments.
� ACEF 2025 brought together ASEAN officials, industry leaders, and international partners to accelerate the adoption of the circular economy.
INVESTMENT FOR IMPACT: The unveiling of Dana Iklim +.
Net Zero requires both technological readiness and sustained institutional investment.
MOBILISING GREEN CAPITAL
Dana Iklim + represents KWAP’ s third catalytic investment programme and its most climate-centric to date. While earlier initia-
tives, Dana Pemacu and Dana Perintis, were designed to strengthen Malaysia’ s private market ecosystem, this new fund introduces a targeted multi-asset strategy that channels institutional capital into climate-aligned sectors.
These include infrastructure, private equity, real estate and nature-based solutions— all areas prominently highlighted at IGEM’ s exhibitions and discussions.
The fund aims to support projects that reduce emissions and build long-term resilience, with KWAP estimating that its investments could help mitigate up to one million metric tonnes of CO₂e. This aligns with the overarching IGEM 2025 theme,“ Race Towards Net Zero: Inclusivity and Sustainability,” which underscores the need for innovation, collaboration, and green financing as the backbone of Malaysia’ s transition.
KWAP Chief Investment Officer Hazman Hilmi Sallahuddin said the launch signals the organisation’ s commitment to embed sustainability within its portfolio while driving meaningful national impact. The initiative is guided by KWAP’ s impact measurement framework, which assesses climate outcomes and co-benefits aligned with the UN Sustainable Development Goals.
The“+” in Dana Iklim + reflects these additional benefits— including food security, access to clean water, and inclusive economic growth— themes widely echoed throughout IGEM’ s conferences.
Aligned with major national plans such as the National Energy Transition Roadmap( NETR), Ekonomi MADANI and the Ministry of Finance’ s GEAR-uP initiative, Dana Iklim + adds a financial engine to the momentum seen at IGEM 2025, reinforcing Malaysia’ s ambition to position itself as a leader in green investment across the region.
Circular economy rising
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UNDER Malaysia’ s 2025 ASEAN Chairmanship, the ASEAN Circular Economy Forum( ACEF) 2025 provided a high-level platform for dialogue on sustainable growth and circularity across Southeast Asia.
Coinciding with IGEM 2025 and KLSS 2025, the forum highlighted priority areas where harmonised policies and cross-border cooperation could drive a faster, more inclusive circular economy transition in the region.
One of the sessions featured the annual policy dialogue to accelerate the region’ s circular economy transition. Moderated by Vong Sok, the panel featured ASEAN Business Advisory Council Executive Director Rifki Weno; Denmark BOFA Project Lead David Christensen; ASEAN Secretariat Assistant Director of Trade Facilitation Cuong Tran; and EU-ASEAN Business Council Executive Director Chris Humphrey.
Weno highlighted the business perspective, noting that ASEAN enterprises are increasingly aware of the economic and regulatory opportunities in circularity, yet MSMEs face barriers in technology access and financing.
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Weno stressed that harmonised regional policies could unlock significant value for enterprises, enabling wider adoption of sustainable practices.
Christensen drew on Denmark’ s experience in Bornholm, where the island has committed to a zero-waste target by 2032. He underscored the importance of foundational building blocks— credible data systems, transparent monitoring, and supportive policies— as prerequisites for a successful circular transition.
From a trade perspective, Tran and Humphrey highlighted the role of regional agreements and cross-border facilitation in supporting circular products. The panellists stressed that aligning extended producer responsibility policies, incentivising recycling infrastructure, and building awareness are critical to bridging gaps between policy, trade, and implementation.
ACEF 2025, held under the theme“ Accelerate the circular economy transition in ASEAN with green skills, innovative solutions, and investments,” served as a unique platform for
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SUSTAINABLE ASEAN: The panellists explore harmonising circular economy efforts to accelerate ASEAN’ s green transition. |
ASEAN governments, private sector actors, start-ups, and international partners to collaborate on policies and initiatives that drive circularity.
With Malaysia’ s 2025 ASEAN Chairmanship emphasising inclusivity and sustainability, the forum reaffirmed the region’ s commitment to achieving ASEAN Community Vision 2045 through innovative, collaborative, and circular solutions. – @ green
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