Deputy Governor of the State Bank of Vietnam SBV Nguyen Kim Anh has underscored the decisive role of banking sector in economic shifting via targeting capital flows into sustainable development goals
During a seminar co-hosted by the SBV and German Agency for International Cooperation (GIZ) in Hanoi on August 7, Anh urged banks to adopt social and environment risk management principles when it comes to credit supply.
Pham Xuan Hoe from the SBV’s Banking Strategy Institute said climate change, environment pollution and CO2 emission force banks to raise their sense of responsibility for the society.
According to the GIZ, Vietnam needs at least US$30.7 billion till 2020, or 15% of its gross domestic product in 2015, to fund its green growth strategy.
It forecast that the country could reduce 85.12 million tonnes of CO2 by 2020 and 197.9 million tonnes by 2030, or 25% of the total.
Head of the Department of Science, Education, Natural Resources and Environment Pham Hoang Mai suggested that the SBV issue framework policies on green finance, encourage banks to provide preferential loans for green projects, and regularly rally international green finance schemes.
He underscored the need to establish a green financial fund to access global funding such as the Green Climate Fund, adding that financial institutions should enforce internal policies on green banking and credit, as well as risk governance policies while supporting the issuance of green bonds and attracting domestic and foreign investment in green projects.
Michael Krakowski, Director of the Macroeconomic Reform/Green Growth Programme, hailed Vietnam’s efforts and achievements in the process towards green growth.
He pledged to continue partnering with the SBV to contribute to successfully realising national strategies on green economy, climate change response and sustainable development.