After decades of relying on fossil fuels and other non-renewable resource, it has become increasingly apparent that the rate at which we expend energy is highly unsustainable. As such, renewable energy has been a source of intense research and discussion in an effort to curb this issue.
Unfortunately, not many businesses and energy corporations have been keen on the uptake of renewable energy due to how inefficient it can be. The fact is that with our current technology and knowledge, renewable energy simply has a hard time keeping up with the energy output of fossil fuels. This results in a catch-22 where the renewable energy sector lacks sufficient funding to develop further, but it can’t get funding because it is not developed enough to be efficient.
To incentivise more renewable energy efforts, CIMB Bank Berhad has recently launched its renewable energy financing for SMEs in Malaysia. This is a part of its RM15 billion (US$3.58 billion) SME allocation for 2019 – 2020 and CIMB Groups’ sustainability commitment.
CIMB Bank has allocated RM100 million to the CIMB SME Renewable Energy Financing programme. One of the first initiatives under this programme is to provide smaller SMEs with 100 per cent financing to cover the cost of solar photovoltaic (PV) systems and installation on their rooftops.
The financing initiative offers packages from as low as RM20,000 and up to RM1 million, in support of the government’s Net Energy Metering (NEM) scheme. SMEs need to first obtain the NEM approval from SEDA, to be eligible for CIMB’s Renewable Energy Financing. The financing initiative provides a practical solution to enable even the smaller and micro SMEs to purchase solar PV systems to save on their electricity bills, and contribute to planet earth’s well-being.
Tengku Dato’ Sri Zafrul Aziz, Group CEO, CIMB Group said, “With the CIMB Renewable Energy Financing, we are pleased to be able to incorporate environmentally friendly policies into our commitment to the SME sector. Our planet is at a tipping point, from an environmental, economic and social (EES) perspective, and we must take action now. To that end, members of the banking and finance industry can and must leverage on our resources and network to catalyse real lasting change across these fronts, and to begin pursuing profits with a purpose.”
Apart from the SME Renewable Energy Financing, CIMB Group has also taken other steps to fulfill its commitment to Sustainability, a key pillar in its current growth strategy. These include launching its Group Sustainability Policy and Sustainable Financing Policy to guide decisions on operations and lending policies to ensure positive EES impact.