On November 26, 2024, in order to raise awareness and interest of investors in green investment opportunities and encourage businesses to invest in environmentally friendly projects through green financial instruments, the Center for Natural Resources and Environment Communication (Ministry of Natural Resources and Environment) in collaboration with Vietnam Economic Magazine (VnEconomy - Vietnam Economic Times) organized a series of seminars "Promoting green investment and green financial market - Towards the goal of Net zero in Vietnam".
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In recent times, the world has witnessed more and more records of extreme temperatures as well as widespread natural disasters caused by climate change, from forest fires to floods and the devastation of storms. With its special geography, Vietnam also faces great risks of natural disasters, from storms to floods, all of which can seriously affect the economy as well as the lives of millions of people.
Statistics show that the damage caused by natural disasters has increased significantly, accounting for about 1.5% of GDP annually. Accordingly, developing a green economy, a circular economy, towards green growth and sustainable development has become an orientation in the economic development strategy not only of Vietnam but also of many countries in the world.
Green finance is considered an important method that Vietnam and other countries in the world are focusing on to move towards green and sustainable growth. 1,000 billion USD per year is the figure that from now until 2035, the world's economies need to reduce greenhouse gas emissions and adapt to climate change. This is the climate finance target being set in negotiations at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29).
According to the World Bank (WB), Vietnam needs about 368 billion USD for the 2022-2040 period to achieve the goals of green growth, inclusive green transformation associated with climate change response, equivalent to about 6.8% of GDP each year, of which 65% of this need will have to be mobilized from outside the public sector. In particular, with the commitment to bring net emissions to zero by 2050 and reduce methane emissions by 2030, Vietnam's investment demand for projects that minimize environmental impacts will increase.
Implementing the Government's policy, the Ministry of Finance has issued and implemented the Action Plan of the financial sector on green growth such as developing and perfecting related financial policies, focusing on developing the green capital market and green financial products. The Ministry of Finance is also developing a Project on Developing the Carbon Market in Vietnam in coordination with the Ministry of Natural Resources and Environment and relevant agencies.
The goal is that by 2025, Vietnam will start piloting and by 2028 officially operate a carbon credit trading floor. However, green finance has been deployed in Vietnam for about 10 years but the scale is still modest (green credit accounts for only 4.5% of total outstanding debt, green bonds are very few...). This requires mechanisms, policies and solutions to mobilize domestic and foreign capital, promote the development of the green financial market, and encourage private capital flows to invest in green fields.
In the Southern region, Ho Chi Minh City is the country's major political - economic - financial center, but is also identified as one of the 10 cities in the world heavily affected by climate change.
Recent research results published by the Institute of Environment and Resources, Ho Chi Minh City National University show that, on average, the total greenhouse gas emissions in the city are more than 60 million tons of CO2 per year. Accordingly, Ho Chi Minh City has chosen green growth as its future development strategy; at the same time, it has set a target of reducing emissions by 10% by 2030 to build a favorable, safe, and efficient living and working environment for people and businesses.
At the end of 2022, the Politburo issued Resolution No. 31 on the city's development orientation and recently Resolution 98 of the National Assembly on piloting specific mechanisms and policies for the development of Ho Chi Minh City. These are orientations and legal frameworks for the city to have conditions to achieve sustainable development goals, in order to implement the green transformation process more quickly and conveniently. To achieve these goals, with its characteristics and favorable conditions, Ho Chi Minh City's ambition to become a regional financial center needs to aim for a new generation financial center model, attracting green financial resources.
The Politburo recently agreed in principle on the Project to build a regional and international financial center in Vietnam. In particular, Vietnam will establish a comprehensive international financial center in Ho Chi Minh City. Previously, on October 28, at the Vietnam - UAE Business Forum in Dubai, Prime Minister Pham Minh Chinh said that Vietnam plans to build financial centers in Ho Chi Minh City and Da Nang.
Source: https://thoibaonganhang.vn/thuc-day-dau-tu-xanh-va-tai-chinh-xanh-huong-toi-muc-tieu-net-zero-tai-viet-nam-158144.html
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