June 14-15, 2023 | Malaysia – UCLG ASPAC, host of the GCoM Southeast Asia, supported the organisation of a two-day workshop on Climate Finance for Malaysian Cities from June 14 to 15, 2023. The workshop was organised under the GCoM Asia Project, funded by the European Union, in collaboration with the Islamic Banking and Finance Institute Malaysia (IBFIM). Attracting 93 representatives of cities and local governments as well as experts, the workshop equipped them with technical knowledge and resources from local and international institutions to access and mobilise climate finance.

1. GCoM National Workshop in Malaysia: Green Technology and Innovations
to Accelerate Access to Climate Finance
June 14-15, 2023 | Malaysia – UCLG ASPAC, host of the GCoM Southeast Asia, supported the organisation
of a two-day workshop on Climate Finance for Malaysian Cities from June 14 to 15, 2023. The workshop
was organised under the GCoM Asia Project, funded by the European Union, in collaboration with the
Islamic Banking and Finance Institute Malaysia (IBFIM). Attracting 93 representatives of cities and local
governments as well as experts, the workshop equipped them with technical knowledge and resources
from local and international institutions to access and mobilise climate finance. The event was graced by
YBrs. Datuk Haji Azmi bin Abdul Hamid (Executive Director of Kuala Lumpur City Hall or DBKL), Mr.
Francesco Floris (First Counsellor – Head of Trade and Economic Relations from the Delegation of the
European Union to Malaysia), and Puan Madelena Mohamed (Director of the Sustainability Unit, Bank
Negara Malaysia).
Accelerating Sustainable Urban Mobility: Electrification and Transport Modelling for Green
Infrastructure

2. Discussion: Development of electrification policies and projects at the local
levels, benefits and challenges of electrification, sharing of successful
electronic vehicles (EV) examples from various countries and concerns
regarding the lithium market and recycling processes, different types of
transport models, their use, data requirements, and collection methods.
Recommendation: Local authorities focus on sustainable mobility strategies
rather than designing cities solely for cars and encouraged the inclusion of electric vehicle solutions in
public fleet procurement.
Enhancing Resilience: Flood Management, Adaptation Planning, and
Innovative Solutions
Discussion: Flood management and response plans, insights and initiatives
shared including GIZ's "Small and Medium Grants Fund", the flood
management visualisation toolkit (TOSCA), innovative portable energy
solutions from Tespack.
Highlights: The importance of vertical integration and the utilisation of existing climate finance
mechanisms; significance of international partnerships and the use of data in planning and implementing
effective flood management strategies.
Creating Healthy and Sustainable Buildings: Innovations in Indoor Air
Quality and Environmental Monitoring
Discussion: The technology for monitoring and managing environmental
factors inside buildings to improve health, decarbonisation, and the
Environmental, Social, and Governance (ESG) performance and showcase
of relevant good practices.
Good practices: A building in the Philippines recognised as the healthiest in Southeast Asia,
decarbonisation efforts in a Singaporean building equivalent to removing 1,700 cars from the road
annually, and a city-wide project in Europe in collaboration with a European government.

3. Enabling Climate Finance at the City Level: Tools and Platforms for
Sustainable Infrastructure and Energy Projects
Discussion: Tools and platforms for facilitating climate finance at the city
level; opportunities for cities to access international markets, including
carbon pricing instruments and carbon trading, in addition to carbon
taxation, transparency, and establishing carbon credits as a new revenue
stream.
City Climate Finance Gap Fund and FMDV Global Fund for Cities
Development: Financing Climate Ambitions and Sustainable Urban
Development
Discussion: The City Climate Finance Gap Fund and the FMDV Global Fund
for Cities Development as crucial mechanisms to support cities in developing
and emerging countries in realising their climate ambitions.
Recommendations: Aggregating small-scale interventions to make them more bankable and attract
financiers; the importance of Monitoring, Reporting, and Verification (MRV) for transparency and the
potential of digital MRV systems.
Challenges to Accessing Climate Finance and Opportunities to Overcome
Discussion: Cities sharing in accessing and mobilising climate finance,
successful sharing from recipients of climate finance, and projects
implemented through innovative funding mechanisms:
• Palembang City (Indonesia): Recipient of technical assistance through the
City Climate Finance Gap Fund (Gap Fund) for green and resilient
construction and energy-efficient affordable housing;
• Penang Island City Council: Recipient of the Climate Adaptation Fund, focusing on climate-resilient
urban tree species and implementing the Penang Nature-based Climate Adaptation Programme;
• Iskandar Regional Development Authority (IRDA): Grant recipient of technical assistance under
the UK-Pact and project implementation under the Green Technology Application for the
Development of Low Carbon Cities;
• Kuala Lumpur City Hall: Initiatives in implementing a district cooling system and reducing energy
consumption through renewable energy and energy efficiency measures in public buildings.

4. Financing Climate Actions and Islamic Social Financing for the Community
Discussion: How Islamic financial institutions contributed to alleviating
hardships caused by the COVID-19 pandemic and supported strategic actions
within the ecosystem; climate finance instruments and examples of projects
in Malaysian cities; use of concessional loans, plastic credits, green/climate
bonds, and carbon pricing to finance climate actions; blending of public and
private finance to generate the necessary capital for climate projects; concept of Islamic Social Financing
(ISF) and its potential for benefiting community-focused Public-Private Partnerships (PPPs) implemented
by city councils in Malaysia.
Challenges and the urgent need for climate finance grants were communicated by the GCoM Malaysian
cities to the Joint Committee on Climate Change (JC3) for their consideration and potential channelings
to the Ministry of Finance.
Upcoming Workshop in Other Southeast Asian Countries
Similar workshops will be organised in Viet Nam and Indonesia to allow cities and local governments
engage directly with national-level ministries and develop proposals in collaboration with climate financial
institutions.