Sustainable Finance Moves Into The Mainstream As Green Demand Grows
By Nik Nurfaqih Nik Wil
JAKARTA, July 1 (Bernama) -- Sustainable finance is becoming increasingly mainstream in the banking sector, as rising demand for electric vehicles (EVs), green homes and other low-carbon investments prompts financial institutions to broaden their financing and investment offerings.
The trend is particularly evident in Southeast Asia's EV market.
According to the International Energy Agency (IEA), electric car sales in Malaysia doubled in 2025, while Indonesia’s sales more than doubled year-on-year, reflecting rising consumer adoption of lower-carbon transport and growing demand for financing solutions that support the energy transition.
For the Maybank Group, the shift has reinforced its confidence to significantly expand its sustainable finance ambitions for the next five years.
Group chief sustainability officer, Datuk Shahril Azuar Jimin said the bank has committed to mobilise RM300 billion (US$73 billion) in sustainable finance across ASEAN between 2026 and 2030, with implementation remaining on track less than six months after the programme was launched.
“We are not even in the first six months of implementation, but we are on track,” he told Bernama on the sidelines of the inaugural Maybank Indonesia Sustainable Finance Forum 2026 here.
Shahril said the stronger-than-expected demand was evident in the group's previous five-year commitment, under which it mobilised RM176 billion in sustainable finance by the end of 2025, more than doubling its original RM80 billion target announced in 2021.
“We know there's demand. In the past, people used to think there was a liquidity issue. There's no liquidity issue. Banks are more than happy to support sustainability and sustainable financing,” he said.
In Malaysia, the Energy Transition and Water Transformation Ministry increased the residential quota under the Net Energy Metering (NEM) Rakyat programme by 100 megawatts in May 2025 after the existing allocation was fully subscribed, enabling more households to install rooftop solar photovoltaic systems.
Shahril said the changing demand has also broadened the scope of sustainable finance beyond traditional green projects, with Maybank's Sustainable Product Framework now covering transition finance, EV financing, green homes, green mortgages, social finance and green bonds.
He said the transformation has also changed the role of banks, with relationship managers now expected to guide clients through climate and sustainability issues rather than simply arrange financing.
“In the early days, the challenge was often how relationship managers communicated with clients, as they needed to be able to offer solutions. It's not just 'take this'. You must be able to explain the effects of climate change and the social impacts of a project,” he said.
He said Maybank had invested heavily in capacity-building programmes and sustainability certification for relationship managers, strengthening the group's confidence in its ability to deliver the expanded commitment.
The broader trend is also reflected in Indonesia, where Maybank Indonesia mobilised about Rp17 trillion in sustainable financing under the group's previous 2021-2025 commitment.
Maybank Indonesia’s head of sustainability, Maria Triffany Fransiska said implementation of the new commitment was still in its early stages but progressing well, with transportation emerging as one of the strongest sustainable financing segments as demand for EVs continues to grow.
She said Maybank Indonesia's sustainable finance portfolio also includes financing for affordable housing and low-cost electric two-wheelers for lower-income communities -- illustrating how sustainable finance is increasingly supporting everyday consumer needs alongside larger transition projects.
Beyond financing, Maria said Maybank is also expanding its sustainable banking ecosystem, with Indonesia being the first market within the group to introduce its environmental, social, and governance (ESG) deposit product, and Malaysia is expected to follow suit.
She added that Maybank Indonesia is also preparing to develop green bond initiatives as part of the group's broader sustainable finance strategy.
-- BERNAMA