Kuala lumpur: 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.
According to BERNAMA News Agency, the fund, which is Malaysia’s first of its kind, will channel institutional capital towards climate-focused investments across infrastructure, private equity, real estate, and nature-based solutions. The initiative aims to target 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. It seeks to mobilise institutional capital towards measurable decarbonisation and resilience outcomes.
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. It also aims to expand its role as a catalyst for sustainable economic growth through climate-focused investments.
KWAP stated that 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, which can have exponential impact from climate-focused investments. This reflects 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.
KWAP chief investment officer Hazman Hilmi Sallahuddin highlighted that Dana Iklim+ demonstrates how institutional capital can be mobilised to drive both environmental impact and sustainable economic growth. Through this fund, KWAP aims 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, reinforcing KWAP’s role as a responsible institutional entity. This reflects its long-term commitment to embedding sustainability into Malaysia’s financial ecosystem.
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. He emphasized that the fund is not given for free but will finance projects that can reduce carbon emissions or introduce new technologies supporting climate change efforts.
He noted that 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 created can generate returns, such as in reforestation efforts that can produce carbon credits.