Malaysian pension fund KWAP has launched a 2-billion-ringgit ($473-million) climate initiative, Dana Iklim+, as it accelerates commitments to sustainable development goals.
Dana Iklim+ is Malaysia’s first climate-focused investment fund, as well as KWAP’s third catalytic investment programme, following Dana Pemacu and Dana Perintis.
The fund aims at channelling institutional capital towards climate-focused investments across infrastructure, private equity, real estate, and nature-based solutions, KWAP said in a statement.
Structured as a multi-asset investment strategy, Dana Iklim+ prioritises opportunities that drive meaningful climate impact while generating sustainable long-term returns.
“As a responsible institutional investor, KWAP is taking a significant step forward in advancing the nation’s transition to a low-carbon, climate-resilient economy. Dana Iklim+ is an integral part of this effort and demonstrates how institutional capital can be mobilised to drive both environmental impact and sustainable economic growth,” said Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP.
He added that the new initiative had an objective of reducing up to one million metric tonnes of carbon dioxide equivalent.
KWAP last year pledged $4.5 billion to sustainable investments by 2030 in order to achieve a net-zero portfolio by 2050.
Malaysia is committed to reducing its carbon intensity by 45% by 2030. It will need around $570 billion over the next two decades to achieve its climate and sustainability goals.
In June 2025, KWAP signed a partnership with the Malaysia Forest Fund to advance forest conservation and nature-based solutions, including the development of national carbon credits.
The pension fund has also picked Climate Fund Managers and Argos Partners as co-general partners (GPs) for The Malaysia Climate Infrastructure Fund. KWAP is committing an initial capital base of 500 million ringgit ($118 million).
Climate Fund Managers is among the 12 GPs selected under the 6-billion-ringgit Dana Pemacu programme. Other infrastructure managers in the same cohort include DigitalBridge, I Squared Capital, and Seraya Partners.
