Alliance Islamic Bank chief executive officer Rizal IL-Ehzan Fadil Azim (left) and Asia Carbonx Change Plt CEO and founder Ir. Nirinder Singh Johl
KUALA LUMPUR: Alliance Islamic Bank Bhd has partnered with Asia Carbonx Change Plt (Carbonx) to provide a new sustainability program with green and transition financing solutions for SMEs to support their sustainability journey.
In a statement, the bank said the new Islamic Sustainability Financing Programme (ISF Programme), which includes the Low Carbon Transition Facility-i, represents a significant advancement in providing businesses with comprehensive financing options.
These options aim to support their sustainability agendas, reduce carbon footprints, and secure Renewable Energy Certificates (RECs).
Through this partnership, Carbonx will act as the intermediary to secure Renewable Energy Certificates (RECs) for Alliance Islamic Bank’s eligible solar financing customers.
With RECs, companies can affirm that their electricity comes from renewable sources, thereby significantly reducing their Scope 2 emissions, which are associated with the consumption of purchased electricity.
“In line with our aim of building an ESG-focused organisation, we recognise the pivotal role we play in developing sustainable financing solutions and delivering sustainable economic value for the communities we serve. In achieving this, we provide various avenues to support our customers in transitioning their businesses to meet the challenges of climate change.
“Our strategic alliance with Carbonx exemplifies our continuous efforts to innovatively empower and encourage businesses to adopt sustainable practices, reduce their carbon footprint, and enhance their competitiveness in the global market,” Alliance Islamic Bank chief executive officer Rizal IL-Ehzan Fadil Azim said.
Customers are eligible for RECs when they choose solar financing solutions or energy efficiency through the bank’s EPCC (engineering, procurement, construction, and commissioning) partners.
Those with financing exceeding RM500,000 will receive complimentary RECs for up to two years, it said.
These RECs boost Alliance Islamic Bank’s financing offer, which provides businesses with up to 100% financing, no upfront costs, and the chance to monetise their renewable energy assets. This package aims to make adopting sustainable practices both appealing and financially rewarding.
It said the ISF Programme supports Alliance Bank’s goal of achieving RM15bil new sustainability banking business by FY27.
