Policy and legal framework for green technology innovation funding and governance - the case of Malaysia

Abstract

This research proposes a Policy and Legal Framework for Green Technology Innovation for Malaysia, focusing on (i) Funding and Financing and (ii) Governance and Institutional Mechanisms. The concept of Green Technology gained attention in Malaysia in 2009 after the inception of the National Green Technology Policy and the establishment of a dedicated Ministry that oversees Green Technology. The motivation for the scope of this research was a result of the emphasis placed by the National Green Technology Policy on the area of Research, Development and Innovation (RD&I), as a strategic thrust that could contribute to the development and application of Green Technology in Malaysia. However, preliminary research reveals existing issues with the governance and institutional mechanisms, where there is a lack of policy coherence, institutional gaps, and jurisdictional discrepancies that hinder implementation of Green Technology and Green Growth measures in Malaysia. The researcher, through this research, identifies the gaps and discrepancies, provides justifications for strategic actions and recommends a comprehensive policy and legal framework with an Implementation Guide for Green Technology Innovation, specifically focusing on funding and financing and governance and institutional mechanisms. This research is purely qualitative which derives best practices and qualitative data from case studies. To support the validity of the research findings, interview sessions were conducted in the European Commission, relevant agencies in South Korea and Malaysia. A survey was administered amongst the key players of the innovation ecosystem in Malaysia that derived qualitative data which was used to strengthen the data on the current scenario in Malaysia. A case study analysis of the policies and legal interventions employed in the European Union, South Korea and Malaysia were used to support the findings of this research further. In addition to the recommendations and an implementation guide, a Multi-Criteria Framework was developed to assist in prioritising Green Technologies for funding and financing decision making. This research hopes to unveil the issues indicated above with suitable recommendations that could assist in reducing the barriers and limitations faced by Malaysia in achieving its goal of being a sustainable and inclusive High-Income Nation.