Vietnam To Launch Green Finance Classification System

Xinhua/APP

Hanoi: The Vietnamese government is introducing a green finance classification system to promote and guide the expansion of sustainable investments, stated State Bank of Vietnam Deputy Governor Pham Thanh Ha.

According to the International Finance Corporation’s (IFC) latest statistics, Vietnam’s climate investment opportunities will reach up to $757 billion by 2030, focusing on renewable energy, green construction, energy efficiency and transportation.

Vietnam made the commitment to achieve net-zero emissions by 2050, phase out coal power by 2040, and reduce methane emissions by 30 percent from 2020 levels by 2030.

IFC Regional Industry Director Allen Forlemu stated that country’s climate finance sector is still facing significant challenges in ensuring a strong alignment between major investment opportunities and environmental goals, reported Vietnam News Agency.

Allen proposed changing the way banks operate and transitioning to sustainability.

IFC also recommended that Vietnam needs to focus on expanding green infrastructure, especially in areas such as green energy, green transportation, energy efficiency, and green construction.

It should also shift from heavy and “brown” industries to a low-carbon and sustainable emissions pathway. However, this transition poses a challenge due to the current shortage of long-term funding sources, For lemu added.