GuarantCo and Standard Chartered collaborate on climate action

The framework, signed at COP28 in Dubai, will focus on transactions related to climate change, mitigation, adaptation, and resilience, as well as the energy transition.

From the left: Nguyen Thuy Hanh, head of Corporate, Commercial and Institutional Banking at Standard Chartered Vietnam, Philippe Valahu, CEO of PIDG and chair of the GuarantCo Board, and Michele Wee, CEO of Standard Chartered Vietnam

Standard Chartered will mobilise between $200 million and $300 million of financing while GuarantCo, part of the Private Infrastructure Development Group (PIDG), is planning to allocate a maximum of $150 million of guarantee capacity.

Through the MoU, GuarantCo and Standard Chartered will pursue initiatives that allow both companies to deliver on their respective net-zero commitments and contribute towards the delivery of the Vietnamese government’s climate strategy.

In addition, the parties are also considering ways to jointly assist clients in meeting their sustainability strategies and financing their climate change, adaptation, and mitigation ambitions.

The framework will be further developed, with the aim being to reach a formal agreement in the first half of 2024.

Marisa Drew, chief sustainability officer at Standard Chartered said, "Our commitment to sustainable finance seeks to channel capital to where it is needed most to achieve net-zero by 2050."

"Such work is underpinned by meaningful partnerships with clients and markets in transition. Through this framework, we seek to deliver a real impact as part of Vietnam’s progressive sustainability agenda," continued Drew.

Michele Wee, CEO at Standard Chartered Vietnam said, "We believe that the scale of the climate change challenge requires close collaborations between the private sector and governments to ensure a just transition. Directing private capital or blended finance for climate mitigation and adaptation can help us achieve this."

Meanwhile, Philippe Valahu, chair of the GuarantCo Board and CEO of PIDG, noted that the fresh framework is fully aligned with the recently launched climate action focused PIDG strategy to 2030.

“We are confident that the impact of this sustainability-focused deal framework will result in many initiatives that will make a significant impact towards positive climate action for the people of Vietnam,” said Valahu.

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor that mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and South and Southeast Asia.

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of PIDG and is funded by the governments of a range of countries including the UK, Switzerland, Australia, and Sweden.

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