Malaysia’s CIMB Group Holdings Bhd on Tuesday committed to phase out coal from its portfolio by 2040, the first banking group in Malaysia and Southeast Asia to do so.
Big international banks have been exiting coal financing at an accelerated rate this year amid pressure from non-governmental organisations and a global energy transition. The lender’s, Malaysia’s second largest by assets, new ‘Coal Sector Guide’ will prohibit asset-level or general corporate financing for new thermal coal mines and coal-fired power plants, as well as expansions, except when there are existing commitments. The guide will come into effect next year across all CIMB’s operating markets.