By leveraging each other's expertise and pooling resources, DFIs can implement effective strategies that would otherwise be challenging to undertake alone. For example, the Coastal Climate Resilient Infrastructure Project (CCRIP)1 in Bangladesh exemplifies such collaboration between multiple DFIs and the government. Funding from International Fund for Agricultural Development (IFAD), Asian Development Bank (ADB), KfW, and the Government of Bangladesh, supports CCRIP's goal of improving the infrastructure in disaster-prone regions in southwest Bangladesh. The project focuses on constructing climate-resilient roads, designed to endure cyclones through strategic engineering, using resistant materials, raised construction, and effective flood and erosion management2. CCRIP has achieved significant outcomes, benefitting local farmers and entrepreneurs by improving accessibility and connectivity in remote areas, even during the monsoon season. The project not only builds and upgrades markets, but also significantly boosts sales of agricultural produce and enhances access to inputs. Additionally, CCRIP enhances climate change adaptation capacity and promotes employment opportunities and gender empowerment. CCRIP demonstrates the power of collective action in addressing specific national economic issues or local community development, and therefore sets a compelling precedent for Malaysian DFIs. Instead of working in isolation, DFIs can leverage pooled  1/3  BIS - Central bankers' speeches  resources and expertise to jointly deliver targeted support, catalyse effective infrastructure development and drive transformative change. Secondly, DFIs can use blended finance to mobilise both public and private capital, specifically targeting near-bankable projects with significant economic spillover.

Through this policy, the Melaka State Government was able to reduce carbon emissions and energy costs by transforming 120,000 streetlights into smart LED streetlights. Subsequently, the federal government has requested ADB to support the development of subsequent GCAPs for 14 selected cities in the country5. Malaysian DFIs can draw inspiration from this collaboration to strengthen capacity and assume a more influential role in shaping government policies. Embracing this opportunity for policy additionality is not only crucial for progress but also aligns perfectly with the expected responsibilities of DFIs. Finally, the role of industry association – ADFIM - cannot be underestimated. As the collective body representing DFIs' interest, ADFIM has traditionally leveraged its influence to champion common interests and resolve industry issues. However, ADFIM is poised to go further by fostering industry collaboration and promote knowledge sharing among its members through exchange of best practices and issuance of technical papers. Through these efforts, ADFIM can become an enabler for a greener Malaysia. 2/3  BIS - Central bankers' speeches  Ladies and gentlemen, the Bank acknowledges that the path ahead may present challenges for DFIs. Therefore, today's forum provides a platform for open dialogues, where we can learn from each other's experiences, discuss emerging trends, and identify relevant opportunities for the DFI industry. We believe DFIs have the potential to become trailblazers in addressing climate change, and we actively seek partnerships with visionary DFIs to introduce innovative sustainability-linked financing initiatives before the JC3 Conference later this year, or at the very least, for Budget 2024.