Private Investment for Green Growth

10/05/2017 - 1258 Views

(Hanoi) The State Bank of Vietnam and the Macroeconomic Reforms/ Green Growth Programme of the Vietnam – German Cooperation co-organised a Conference on “Promoting Investment of Private Sector for Green Growth via Banking System”. The Conference is held within the framework of the Macroeconomic Reforms/Green Growth Programme, implemented by GIZ Viet Nam on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ). In order to implement the National Green Growth Strategy and National Action Plan on Green Growth for the period 2014 – 2020, the Governor of State Bank of Vietnam had promulgated Directive on promoting green credit and management of social and environmental risks in credit granting activities (Directive No. 03/CT-NHNN dated 24/3/2015) and Action Plan of banking sector to implement the National Green Growth Strategy until 2020 (Decision No. 1552/QĐ-NHNN dated 6/8/2015). This conference is another step following numerous efforts by State Bank of Vietnam to contribute to channeling investments from private sector through banking system to support achievement of transforming the national economy toward being greener and more socially and environmentally sustainable. Participants in the conference are experts from the State Bank of Vietnam, from those commercial banks, financial institutions, line ministries, cities and provinces, which have implemented green activities to some extent, as well as experts from international organisations and key green programmes of GIZ. This is an opportunity for them to update, discuss on current status and perspectives of international green funding sources, and on financial needs for green growth in Vietnam. Participants have also been shared by representatives from the State Bank of Vietnam on the very first important results that lay down foundation for the whole process of developing framework for green finance – green banking policies and products, e.g. pilot green credit programs, green project catalogue, social & environmental risk management guideline, green credit reporting regulation. These are initial outcomes achieved by the State Bank of Vietnam in cooperation with development partners, an active and effective contribution of which is from the Macroeconomic Reforms/Green Growth Programme of the Vietnamese – German Cooperation. In the opening speech, Mrs Nguyen Thi Hong, Deputy Governor of State Bank of Vietnam emphasises decisive role of the banking system in “greening” investment capital flows to the economy, and in credit risk management towards green growth”. In particular, the Deputy Governor points out that "the two most important issues are resources mobilisation and development of credit programs with appropriate targets in line with criteria of green and environmentally friendly projects". Dr Michael Krakowski, Programme Director and Chief Technical Advisor of the Macroeconomic Reforms/Green Growth Programme shares that the Macroeconomic Reforms/Green Growth Programme appreaciates and actively supports State Bank of Vietnam “to develop an appropriate policy framework for green investment and green financial products and to channel domestic and international funding sources through the finance and banking system towards green investments; especially those from increasing global climate and green funds”, and commits to “further cooperation with State Bank of Vietnam to implement Vietnam’s National Green Growth Strategy”.

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