KUALA LUMPUR (Feb 5): The UK government on Thursday launched the Climate Finance Accelerator (CFA) in Malaysia, and is calling for proposals from low-carbon businesses and companies leading the climate transition that are seeking investment, with submissions open until March 6.

The CFA is a global technical assistance programme funded by the UK government to help climate-related projects access finance. Since its inception in 2020, the programme has supported more than 220 projects across 10 countries, mobilising nearly US$500 million (RM1.9 billion) in investment.

Deputy Finance Minister Liew Chin Tong, who officiated the launch, said that with Malaysia working towards its net-zero emissions ambitions, he hopes the programme will support local businesses across four key areas: accelerating the energy transition, reimagining cities, strengthening supply chain traceability, and building understanding around the upcoming carbon tax and emissions trading scheme (ETS).

“This programme [CFA], to me, is not so much about the money, it is the knowledge that we can gain from how other countries have done [their climate solutions projects], the understanding of [how climate solutions projects] can be done in Malaysia, as well as using Malaysia as an example to provide climate solutions for the region and beyond,” he said during his keynote speech at the launch held in Kuala Lumpur.

Liew added that while the country has abundant investment opportunities, there is a lack of understanding on how to channel these capitals into climate causes. In this regard, the CFA presents an opportunity for businesses to connect with investors to help channel finance toward low-carbon projects.

“I think that the contribution of this programme is actually the knowledge transfer and the knowledge built in understanding, framing and articulating climate-related projects. We see that there is a lot of potential for Malaysia to leapfrog. This hinges on the effective alignment of capital, policy and knowledge development,” he added.

Echoing a similar sentiment, British high commissioner to Malaysia Ajay Sharma said that Malaysia’s strong economic fundamentals, start-up ecosystem and clear commitment to achieving net zero underpin the CFA’s goal to ensure Malaysian climate ventures receive the support they need and are positioned for growth.

“Climate change remains one of the defining challenges of our time. Its impacts are wide-ranging and increasingly urgent. The recent floods here in the region are just another example of how desperate the need for action is, and the UK Government is committed to supporting global efforts,” said Ajay during his opening remarks.

“But governments can only go so far and cannot deliver the transition alone. Finance is the fuel that turns ambition into action and much of that fuel sits in the private sector. The CFA helps Malaysian businesses become investment-ready and attract the capital required to deliver solutions at scale. We look forward to deepening our work with Malaysia on climate finance in the years ahead.” 

Many climate-related proposals, despite having strong ideas, lack clear revenue streams and sustainable cash flow models. Without a clear value proposition, even the most promising projects struggle to gain traction, said Zakiah Mat Esa, chief sustainability officer at SME Bank.

“From my observation and from a bank’s perspective, the things that make the projects unable to take off or not be successful is also because the project did not have a clear business plan. Because at the end of the day, successful projects must be market-driven. Like the saying goes, ‘you don’t cook what you like to eat, you cook what the customer wants’,” she said during the fireside chat titled Financing Malaysia’s climate projects.

To address these gaps, Robin Guy, head of the CFA at the Department for Energy Security and Net Zero at the UK government, said the CFA supports businesses through a pool of technical experts, where selected businesses will receive three to four months of tailored support so that they can refine their propositions.

“It’s important to recognise that the CFA is not trying to fix everything. Rather, it focuses on identifying gaps and addressing them through targeted support informed by a needs assessment,” he said.

Selected businesses will receive three to four months of tailored support from financial, technical and gender equality, disability and inclusion experts. 

Up to 15 businesses are expected to be selected from sectors including green mobility, bioenergy, circular economy, green construction, sustainable fuels, sustainable land use, forestry and ecosystem restoration, carbon markets and measurement, reporting and verification (MRV) systems.

The programme will run from February to November 2026.

The CFA in Malaysia calls for proposals for businesses that should be at least in the pre-feasibility stage and require a minimum of US$5 million in investment. It also offers the opportunity for businesses to build networks of potential investors with the chance to pitch to climate investors at an event in Kuala Lumpur in November.