A novel risk assessment model for green finance: The Case of Malaysian Oil Palm Biomass Industry

• Main Authors: Ngan, Sue Lin, Promentilla, Michael Angelo B., Yatim, Puan, Lam, Hon Loong
• Format: text
• Published: Animo Repository 2019
• Subjects: Sustainable development > Malaysia; Biomass energy industries—Risk management > Malaysia; Chemical Engineering
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/1677; https://animorepository.dlsu.edu.ph/context/faculty_research/article/2676/type/native/viewcontent
• Institution: De La Salle University

The last few decades have witnessed dynamic changes across the world, with millions of people lifted out of poverty and standard of living has improved in many developing countries, including in Malaysia. However, these achievements have come at a significant cost to the environment and sustainable development. In the face of pressing economic and environmental challenges, concerted efforts have been made to promote green growth as a new source of economic growth. Several policies and strategies have been formulated to promote green growth in Malaysia, and the country has made significant strides in moving its society towards more sustainable consumption and production patterns. However, the green industry still faces significant challenges, hindering progress towards sustainable development. The perceived high risks of green-related projects are often cited by investors and industry players as one of the factors contributing to the slow growth of green industries in developing countries including Malaysia. Therefore, it is imperative that these risk factors are identified and evaluated in a comprehensive manner so that industry players can address these risks by putting in place appropriate risk management and mitigation measures. In this study, we employ the analytic network process (ANP) approach to assess, evaluate, and prioritize risks commonly associated with the oil palm biomass industry. The results indicate that financing risk appears to be as a major concern for the industry, followed by technology risk and supply chain risk. These findings provide useful insights for the industry’s stakeholders to understand risk factors affecting the biomass industry in Malaysia and develop a basis for putting in place risk management and mitigation strategies more effectively. © 2018, Springer Nature Singapore Pte Ltd.