The Vietnam Forest Protection and Development Fund (VNFF - under the Ministry of Agriculture and Rural Development) has just selected BIDV as the bank to serve the North Central Region Greenhouse Gas Emission Reduction Payment Agreement (ERPA) sponsored by the Forest Carbon Partnership Fund (FCPF), worth 51.5 million USD (equivalent to 1,235 billion VND).
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The ERPA was signed by the Ministry of Agriculture and Rural Development as the Program Implementing Agency and the International Bank for Reconstruction and Development (IBRD) (a member of the World Bank Group - WB) as the FCPF Trustee. The agreement aims to transfer 10.3 million tons of CO2 emission reductions in the North Central region (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue) in the period of 2018-2024 to the FCPF, with a total amount of 51.5 million USD. Vietnam is the first country in Asia - Pacific and the 5th country in the world to reach this important agreement with the FCPF.
As a leading state-owned commercial bank with extensive experience in managing foreign capital trusts, BIDV always identifies its responsibility as a pioneer in implementing the policies and directions of the Government and the State Bank in promoting the development of green credit and green banking, contributing to the implementation of the national green transformation strategy. Sustainable growth and green growth are the top strategic goals in BIDV's operations.
At the same time, BIDV is always ready to be a bridge between stakeholders, management agencies, domestic and foreign financial institutions to connect cooperation opportunities in green growth, environmental protection and climate change response; thereby contributing to the development and completion of the sustainable financial ecosystem in Vietnam. With its inherent prestige, capacity and experience, BIDV has become a strategic partner of international sponsors such as the WB, the French Development Agency (AFD), and the Asian Development Bank (ADB) in implementing green projects in Vietnam. BIDV's leading position in foreign trust capital activities in Vietnam continues to be affirmed when VNFF confidently chooses BIDV as the bank to serve ERPA.
As of June 30, 2023, BIDV is leading commercial banks in financing green credit projects with a total outstanding loan balance of VND 66,176 billion (equivalent to USD 2.8 billion), accounting for 4.1% of BIDV's total outstanding credit balance. It is expected that by 2025, BIDV's outstanding loans will be for green and sustainable development sectors.
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