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Malaysia signs MLF grant agreement worth US$10.19m for ozone protection

16 Oct 2025, 1:02 PM
Malaysia signs MLF grant agreement worth US$10.19m for ozone protection

KUALA LUMPUR, Oct 16 — Malaysia has signed a Multilateral Fund (MLF) Grant Agreement worth US$10.19 million (RM43.1 million) for the Kigali Implementation Plan (KIP) Stage I.

The Environment Department (DOE) said the agreement underscores Malaysia's ongoing commitment to implementing the 2016 Kigali Amendment to the Montreal Protocol, which aims to phase down the use of hydrofluorocarbon (HFC) greenhouse gases by up to 80 per cent by 2045.

“Malaysia remains committed to protecting the ozone layer and mitigating the effects of climate change while continuing international cooperation to ensure the country’s refrigeration sector adopts green and sustainable technologies, thereby contributing to global efforts to curb global warming,” it said in a statement.

The agreement was signed by Natural Resources and Environmental Sustainability Ministry secretary-general Datuk Ching Thoo Kim and World Bank representatives, in conjunction with the Ozone to Climate Seminar at the Kuala Lumpur Convention Centre (KLCC) today.

Through the implementation of KIP Stage I, Malaysia aims to reduce 2.67 million tonnes of carbon dioxide equivalent (CO₂eq) emissions by 2029.

The DOE said the funds will be utilised to carry out several key initiatives, including converting commercial refrigeration systems to low-carbon, energy-efficient refrigerants and adopting modern training methods and digital simulations.

Other initiatives include the Technical and Vocational Education and Training (TVET) approach through the Certified Service Technician Programme (CSTP), as well as strengthening comprehensive and sustainable refrigerant life-cycle management.

During the ceremony, MLF sub-grants totalling US$1.877 million (RM7.94 million) were also handed over to three local companies: Berjaya Steel Product Sdn Bhd, Zun Utara Industry Sdn Bhd, and Proton.

“This sub-grant aims to support efforts to replace refrigeration technology with low-carbon systems in factory production, thereby encouraging local industry participation as an early initiative to introduce climate-friendly refrigerants in Malaysia,” it said.

Meanwhile, when officiating at the Ozone to Climate Seminar, DOE director-general Datuk Wan Abdul Latiff Wan Jaffar said that Malaysia has successfully phased out ozone-depleting substances like chlorofluorocarbons (CFCs), carbon tetrachloride (CTC), and methyl bromide since 2010, as well as reducing the use of hydrochlorofluorocarbons (HCFCs) by more than 80 per cent to date.

The nation is now entering a new phase with the implementation of the KIP, which not only focuses on ozone protection but also contributes to climate action by reducing greenhouse gas emissions.

“Signing the Kigali Implementation Plan Stage I with the support of MLF funds today marks another significant achievement for Malaysia in strengthening national policies, building technical capacity, and assisting industries in transitioning to low-carbon and energy-efficient technologies,” he said.

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