Penang collaborates with private sector to mitigate climate change

Penang has signed a memorandum of understanding Alliance Bank Malaysia Berhad to establish the Climate Mitigation Fund.

It is a pioneer state level financing platform that is set to aid the small and medium enterprises and mid tier companies transition towards sustainability.

“As Malaysia’s first state-level blended financing platform, the CM Fund will help Penang’s SMEs and mid-tier companies transition towards sustainable production through preferential financing rates and ESG capacity – building programmes,” said Penang Chief Minister Chow Kon Yeow at the Penang Green Summit opening ceremony this morning.

“This initiative will support strategic industries – including E&E, precision engineering and medical technology – ensuring that our enterprises are not only globally competitive but also environmentally responsible.

“Through this collaboration, Penang Green Council will work hand in hand with Alliance bank to define the qualifying and monitoring criteria, ensuring that every investment contributes meaningfully to our goal.”

Chow was speaking at Penang Green Summit that was held at the Penang Waterfront Convention Centre.

He also highlighted Penang’s collective efforts towards sustainable energy.

“Our collective efforts are already showing results. Between 2019 and 2024, energy intensity in Penang’s manufacturing sector fell by an average of 19% annually, water intensity decreased by 21% and industrial waste send to landfill decline by 24%.

“These numbers reflect more than efficiency gains – they reflect a mindset shift across our industries, proving that sustainable growth is not only possible but profitable.”

The Penang Green Summit was also attended three state excos – Zairil Khir Johari, H’ng Mooi Lye and Datuk Seri S S Sundarajoo.