Determined to implement green and sustainable development goals

The Conference was attended by SBV Governor Nguyen Thi Hong, SBV Deputy Governor Pham Thanh Ha, Deputy Minister Nguyen Thi Bich Ngoc of the Ministry of Planning and Investment, Deputy Minister Le Cong Thanh of the Ministry of Natural Resources and Environment, Ms. Michele Wee, Chairwoman of the BWG; together with representatives from various Ministries, agencies, international organizations, business corporations, domestic and international banks, etc.

In her opening speech, SBV Governor Nguyen Thi Hong shared that, in light of the fact that climate change has become a big challenge for every country around the world, green growth and sustainable development reduction of the use of fossil fuels and increase of the proportion of renewable energy in the economic development are the trends and orientations for many economies around the world, especially for developing countries, to respond effectively to the negative impacts of climate change.

Over the past years, Vietnam has been proactively putting a lot of efforts into implementing various activities both for responding to climate change and for heading towards green and sustainable development. At the 26th United Nations Climate Change Conference (COP26), Prime Minister Pham Minh Chinh made strong commitments about “net-zero” emissions by Vietnam by 2050, thereby opening up opportunities for cooperation on low-emission growth, promoting circular economy, adapting to climate change, creating favorable conditions for Vietnam to develop rapidly and sustainably. A National Steering Committee for the implementation of Vietnam's commitments at COP26 has been established with the participation of multiple Ministries and agencies (including the SBV) with very specific programs, tasks and objectives.

The banking sector has developed and issued a Scheme on the development of green banks in Vietnam, following closely the Government's policy in the Green Growth Strategy for the 2021 - 2030 period, Vision to 2050; issued the Action Program of the banking sector to implement the National Green Growth Strategy; developed Circulars and created a legal framework related to the provision of credit by the credit institutions; paid high attention to the environmental and social risk management in the provision of credit, gradually increasing the proportion of green credit outstanding balance for the economy. In addition, the SBV has proactively discussed with the international financial institutions and various foreign banks, such as the World Bank (WB), the Asian Development Bank (ADB), the French Development Agency (AFD), the Banking Working Group (BWG), etc., in order to review and consider the ability to mobilize resources for green and sustainable development goals.

Ms. Michele Wee, Chairwoman of the BWG, speaks at the Conference.

On behalf of the BWG, Ms. Michele Wee shared that, to achieve the green and sustainable development goals, finance is considered to be the core factor deciding the success of this transition. The Government’s support should be reinforced by the participation and the practical actions of the country’s private sector, and through the financial sources from the public and private sectors. For Vietnam, green growth is an important mission towards sustainable development, and it requires a close, reasonable and harmonious combination between the socio-economic development and the environmental protection. In Directive No. 03/CT-NHNN dated March 24, 2015, the SBV has requested commercial banks to prioritize green credit for projects with clear objectives on environmental protection, to encourage environmentally friendly business practices. With this orientation and roadmap of the SBV and the continuous efforts of the credit institutions, green credit has been making positive developments, and is getting more and more attention, with the investment limits increasing day by day.

Deputy Minister Nguyen Thi Bich Ngoc of the Ministry of Planning and Investment speaks at the Conference.

According to the World Bank’s Country Climate and Development Report (CCDR) for Vietnam, to implement the roadmap for green growth, climate adaptation and “net-zero” emissions, Vietnam would need to mobilize additional financial resources at about 6.8% of the GDP annually, equivalent to a total of 368 billion USD from now to 2040, of which 50% would need to be mobilized from the private sector.

Speaking at the Conference, Deputy Minister Nguyen Thi Bich Ngoc of the Ministry of Planning and Investment shared that green growth plays a particularly important role in the realization of Vietnam's commitments to the Paris Agreement on Climate Change. Right before COP26, the Prime Minister had approved the National Green Growth Strategy for the 2021 - 2030 period, Vision to 2050, with four important objective groups: (1) Reducing the intensity of greenhouse gas emissions as a percentage of the GDP; (2) Greening economic sectors; (3) Greening lifestyles and promoting sustainable consumption; (4) Greening the transition based on the principles of equality, inclusiveness, and resilience. Moreover, on July 22, 2022, the Prime Minister also issued the National Action Plan on Green Growth for the 2021 - 2030 period. The successful implementation of the National Action Plan on Green Growth is expected to contribute to the realization of Vietnam's commitments at COP26, especially the implementation of the Nationally Determined Contributions (NDCs) of Vietnam.

Overview of the Conference.

At the Conference, the representatives of various institutions made presentations, exchanged and discussed about the important topics regarding the Government’s commitments at COP26 and the implementation in Vietnam; the orientations for energy transition in Vietnam; the credit policies of the banking industry to support the green and sustainable development goals; the mobilization of resources for the green and sustainable development goals; the key messages of the CCDR for Vietnam; the harmonization between the economic development goals and the climate risk responses; the implementation practices, international experiences, recommendations and suggestions, etc.

This Conference was an opportunity to exchange, share and obtain important information from the Government of Vietnam on the directions, policies for green and sustainable development to support the Government in realizing the commitments made at COP26, as well as listen to the sharing and to exchange about the implementation practices, and the recommendations from potential partners to attract financial resources. Thereby, the SBV and the relevant Ministries, agencies can review and consider to propose to the Government appropriate solutions, suitable to the new situation and trends.

SBV Deputy Governor Pham Thanh Ha speaks at the Conference.

In his closing speech at the Conference, SBV Deputy Governor Pham Thanh Ha shared that, the implementation of the commitments made at COP26 is a challenge but also an opportunity for Vietnam to implement robust reforms, restructure the economy towards green and sustainable growth, gradually increase the proportion of clean and renewable energy in the economic development. With the positive indications and messages obtained from the Conference through the various presentations and exchanges by the international organizations and the foreign banks about potential support/financing resources, the SBV Deputy Governor believed that there would be a strong transition, attracting new capital flows and investment resources into Vietnam in the coming time. The contents and opinions exchanged in the Conference would help the Government, the relevant Ministries and agencies to better understand the expectations and the needs of the relevant parties, allowing the Ministries and agencies to propose new changes and amendments in the current policies to match the actual situation, and to catch up with the development trends around the world. The SBV Deputy Governor also wished that the international organizations, the financial institutions and foreign banks would continue to accompany the Government and the banking industry to support the investors in green projects for the green transition, and their accessibility to credit resources.

Ms. Michele Wee, Chairwoman of the BWG, hoped that, the ideas and remarks in the Conference would be taken note and shared with all competent authorities for their consideration and assessment, thereby continuing to improve the legal frameworks and to develop necessary mechanisms and policies to promote sustainable finance in Vietnam. The banks and businesses operating in Vietnam wish to receive further support and companionship from the Government of Vietnam and the SBV in their commitments and mobilization of the needed resources to support the Government in implementing the goals and commitments made at COP26.

LK