KWAP UNVEILS RM2 BLN DANA IKLIM+ TO ACCELERATE NATION’S NET ZERO TRANSITION

KUALA LUMPUR, Oct 16 (Bernama) — Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has unveiled a climate-focused investment fund, Dana Iklim+, with a target deployment of RM2 billion to accelerate Malaysia’s transition towards a low-carbon and climate-resilient economy.

KWAP said in a statement today that the fund — Malaysia’s first of its kind — will channel institutional capital towards climate-focused investments across infrastructure, private equity, real estate and nature-based solutions, targeting both sustainable financial returns and measurable environmental outcomes.

As KWAP’s third catalytic investment programme, following Dana Pemacu and Dana Perintis, Dana Iklim+ introduces a dedicated climate-focused investment strategy, mobilising institutional capital towards measurable decarbonisation and resilience outcomes, it said.

Launched by Minister of Plantation and Commodities, who is acting Minister of Natural Resources and Environmental Sustainability, Datuk Seri Johari Abdul Ghani at the Kuala Lumpur Sustainability Summit 2025, the initiative reflects KWAP’s long-term commitment to achieving a Net Zero investment portfolio by 2050 while expanding its role as a catalyst for sustainable economic growth through climate-focused investments.

KWAP said the initiative is guided by its impact measurement framework, which measures impact across six dimensions including national alignment, climate resilience, and co-benefits indicators aligned with the United Nations Sustainable Development Goals. 

“The ‘+’ in Dana Iklim+ represents these co-benefit indicators, that can have exponential impact from climate-focused investments, reflecting KWAP’s recognition that a credible climate strategy must also address interconnected development goals such as food security, clean water, energy access and inclusive economic growth,” it added.

KWAP chief investment officer Hazman Hilmi Sallahuddin said Dana Iklim+ demonstrates how institutional capital can be mobilised to drive both environmental impact and sustainable economic growth. 

“Through this fund, we aim to invest in solutions that create lasting value for Malaysia’s future.

“Dana Iklim+ seeks to mitigate up to one million metric tonnes of CO2e through climate-aligned investments, reinforces KWAP’s role as a responsible institutional, reflecting its long-term commitment to embedding sustainability into Malaysia’s financial ecosystem,” he said.

Meanwhile, Johari told reporters after launching the fund that the RM2 billion fund would operate as a revolving facility to continuously support new climate projects.

“This fund is not given for free, but will finance projects that can reduce carbon emissions or introduce new technologies that support climate change efforts,” he said.

He said the Dana Iklim+ would support projects based on technology and natural resources such as reforestation and the development of new carbon technologies that can provide economic value to the country.

“Many of the technologies we create actually have returns, for example in reforestation efforts that can generate carbon credits,” he said.

-- BERNAMA