Malaysia launches climate finance lab to spur green innovation

Bank Negara Malaysia and Securities Commission Malaysia have launched the Climate Finance Innovation Lab (CFIL) to accelerate the development of climate finance solutions. The initiative, first discussed at the 14th Joint Committee on Climate Change (JC3) meeting, aims to foster public-private-philanthropic collaboration across four focus areas: green innovation, sustainable agriculture, circular economy, and nature-based solutions. Administered by Bank Pembangunan Malaysia, CFIL will support project owners through funding, technical assistance, and stakeholder networks. It also promotes blended finance and Islamic finance instruments to bridge financing gaps. Positioned as an incubator for catalytic projects aligned with national climate goals, CFIL is part of JC3’s broader effort to build climate resilience in Malaysia’s financial sector through strategic innovation and stakeholder engagement.