Green financing for Environmental sustainability: Analysing the trends with Barriers and Challenges in the context Malaysia - Abstract
Alternative funding sources such as green financing other than government and financial institutions are becoming increasingly relevant in promoting green development. Green private equity, for example, has emerged as a funding vehicle that assists green entrepreneurs in obtaining funding in developed economies. Renewable energy projects face two financial obstacles: a lower rate of return than fossil fuel projects and a higher chance of default. Despite the government’s efforts to fund renewable energy, initial costs and a lack of support structures stymie the industry’s development. In general, there is a lack of funding and confidence from local investors, as well as financial institutions’ knowledge and perception of renewable energy. Government green procurement may also help to create financial instruments like credit lines and revolving funds that are explicitly designed for investments in cleaner production. In conclusion, to ensure the effective implementation of green growth in Malaysia, the formulation of sustainable development policies and
regulatory initiatives must take into account a comprehensive finance, technology, and capacity-building support.