Seeking preferential financial resources for "nature-based" solutions

	Securing financial sources for anti-pandemic
	Preparing financial resources for Economic Recovery Program
	Prioritize financial resources for green growth

Photo: Ms. Pham Thi Cam Nhung, Climate-Energy Program Coordinator of WWF Vietnam

How do you assess the current state of businesses applying nature-based solutions for sustainable development?

Currently, many businesses prioritize the application of nature-based solutions, also known as "nature-aligned" solutions, by increasing investment and implementing various initiatives. Many business models are expanding and developing at a faster pace. For example, WWF Vietnam is supporting business models in the Central Truong Son area with a total budget of around USD 3 million, including models like acacia forest and Ngoc Linh ginseng businesses, eco-friendly coffee production, and forest governance restoration to increase carbon storage. Additionally, projects in the Mekong Delta region with a total budget of approximately USD 7.1 million focus on sustainable food production and climate adaptation.

In practice, we have found that some solutions implemented by businesses in collaboration with localities can increase community revenue by about 30%. Meanwhile, many businesses in the supply chain have also experienced significant growth. Moreover, the implementation of these solutions helps businesses save and optimize costs, creating a competitive advantage.

What are the challenges for businesses in this regard, Ms. Nhung?

Although these solutions bring many benefits, the awareness of nature-based solutions, in particular, and green development, in general, among the business community is still limited and needs to be enhanced. Furthermore, implementing green development solutions still faces many obstacles related to mechanisms and policies. For example, there is a need to clarify what standards constitute green development so that businesses can collaborate and grow with organizations. Additionally, nature-based development models face objective challenges from natural disasters such as climate risks, storms, floods, and droughts, which need to be integrated into business models.

Particularly, businesses are also facing financial difficulties. It is estimated that the budget required to implement nature-aligned solutions globally will exceed USD 8 trillion. Meanwhile, strategies related to sustainable development represent a long-term economic vision, spanning 5, 10, or even 20 years. The challenge here is how to shift business awareness to prioritize environmental and social responsibility over economic development.

Businesses often mention financial difficulties. In your opinion, how should this issue be addressed?

The green finance market in Vietnam already has many programs and projects actively supporting business activities. The challenge is how businesses can access these resources. To obtain green credit from banks, businesses must also meet the bank's criteria, such as collateral assets and loan application documents. Financial institutions and large corporate finance funds also need to expand their connections to support businesses, thereby enhancing preferential financial resources.

Additionally, it is necessary to actively promote public-private cooperation in the field of green development and accurately calculate nature-based development strategies for each economic region. For instance, the Mekong Delta region should focus on comprehensive solutions in agriculture, such as growing economically valuable crops or combining them with aquaculture.

Thank you!