ABSTRACT
Malaysia must invest RM33 billion in green energy technologies to increase its renewable energy generation from 2% in 2018 to 20% by 2025. To attract additional investors, the nation must reduce its exposure to risk and enhance market incentives to mobilize private capital. This chapter discusses green investment risks that investors and developers face by using a questionnaire distributed to 60 developers and investors in renewable energy-related projects in Malaysia. Our findings show that investors and developers view policy design risk, administrative risk, market design, and regulatory risk as some of the most significant threats capable of impeding green investment growth in Malaysia, and encourage the government to enhance renewable energy quotas in order to promote investment in renewable energy projects. We accordingly discuss policy recommendations for decreasing green investment risk and reducing green investment capital costs.
