CIMB and CEO Action Network spotlights the success factors behind China’s green finance surge at CIMB’s Cooler Earth Sustainability Series

8 August 2025

Kuala Lumpur: CIMB Bank Berhad (“CIMB”) and CEO Action Network (“CAN”) co-hosted a high-level dialogue to explore how Malaysia and ASEAN can draw lessons from China’s green finance journey. The event, held as part of CIMB’s The Cooler Earth Sustainability Series, brought together over 300 participants comprising CEOs from various industries, regulators, government-linked investment companies (“GLICs”) and CAN members. 

Dato’ Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia and Interim Chair of the CAN Steering Committee, opened the session by emphasising the importance of using real-world insights in shaping locally focused actions to address climate change.

“Escalating climate risks highlight the growing importance of transition finance as a bridge to enable high-carbon, hard-to-abate sectors to shift towards more sustainable business models. There is much more to be done in operationalising green taxonomies and realigning market incentives to drive capital flows into sustainable initiatives,” said Dato’ Fad’l Mohamed.

Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic, highlighted how insights from China’s green finance journey could support ASEAN in developing bankable green portfolios and mobilising private capital.

“CIMB is committed to playing a catalytic role in ASEAN’s transition to a low-carbon economy. Malaysian corporates and financial institutions can gain valuable insights by studying China’s green financing strategies and tailoring them to our regional needs. By embedding sustainability at the core of our financial frameworks, we not only contribute to global environmental objectives but also open up new pathways for economic development. Embracing innovation and forward-looking approaches will help create a more resilient and inclusive future for both businesses and the communities we serve,” said Shahriman.

The session featured a keynote by Dr. Ma Jun, a globally recognised expert in green finance, who is Chairman of the Capacity-building Alliance of Sustainable Investment (“CASI”) and President of the Institute of Finance and Sustainability (“IFS”). Dr. Ma has been instrumental in shaping some of the world’s most influential green finance frameworks, including China’s first green finance guidelines, the G20 Sustainable Finance roadmap, and the China–EU Common Ground Taxonomy. He was recently awarded the Hong Kong Medal of Honour for his outstanding contributions to green finance policy and development.

Dr. Ma shared how coordinated policy, market incentives and financial innovation have enabled China to future-proof its economy. China now generates over 60% of its installed power capacity from renewable sources and is on track to reduce coal power to just 5% by 2045–2050. Electric Vehicles (“EVs”) make up more than 50% of new car sales, with internal combustion engines potentially obsolete by 2030. China also dominates global battery production, with some technologies accounting for up to 90% of global output.

Dr. Ma highlighted how green finance was instrumental in this transition, with the majority of capital flowing into renewable energy, transport and manufacturing sectors to drive large-scale decarbonisation. Today, China is home to the world’s largest green finance market, with over RMB40 trillion (USD5.5 trillion) in outstanding green loans, RMB2.2 trillion (USD302 billion) in green bonds, and more than 1,000 green equity funds. Dr. Ma shared that out of the RMB487 trillion (USD66.9 trillion) needed for green investments in China over 30 years, about two-thirds can be financed through the existing green finance ecosystem, leaving one-third still to be funded, indicating the significant room for green and transition finance growth.

Dr. Ma also emphasised the importance of a coordinated approach across regulators, financial institutions and industry players. He shared practical examples from China where insurance solutions were used to de-risk green technologies and support bankability – including energy efficiency performance guarantees for buildings, revenue protection for renewable energy, and biodiversity-linked crop insurance in rural regions to protect the farmers.

“ESG in China is not just about managing risks, it is a long-term national strategy for competitiveness and financial resilience. ASEAN has the potential to benefit by adopting shared taxonomies like the China–EU Common Ground Taxonomy, improving cross-border carbon markets, and scaling green finance through product innovation and industry collaboration. With the right policy, financial and technical ecosystems in place, ASEAN can accelerate its transition and seize new growth opportunities. Business leaders should adopt the long-term view, noting that while ESG investments may involve short-term costs, as they are key to building competitiveness, innovation, and long-term value,” said Dr. Ma Jun.

The event was also supported by BoardRoom Group, NTT Data Payment Services, Impacto and Big Caring Group.

Ahmad Shahriman Mohd Shariff