Standard Chartered Vietnam spearheads initiative on voluntary carbon credit exchange

The event on July 20 was joined by representatives from MoNRE, the Ministry of Finance, other relevant ministries, Vietnam Security Depository, Hanoi Stock Exchange, and members of other financial institutions and technical consulting firms.

The workshop was an opportunity for participants to share their views, experiences, and proposals on organising and developing the voluntary carbon market in Vietnam.

Nguyen Thuy Hanh, deputy general director and head of Corporate, Commercial, and Institutional Banking at Standard Chartered Vietnam said, "Vietnam is a potential key growth market, but to facilitate foreign investment, Vietnamese enterprises and supply chains need to transition to green production and business operations."

"The establishment of voluntary carbon credit exchanges is a strategic move that will support Vietnam in achieving net-zero emissions by 2050. Standard Chartered commits to providing sustainable development products and services, as well as consulting service for businesses during their investment and financial planning as they strive to reduce greenhouse gas (GHG) emissions and achieve the net-zero target," Hanh continued.

The seminar provided a platform for participants to discuss the roadmap for Vietnam's carbon market, which anticipates having regulations and a trading platform in place by 2025.

A voluntary pilot carbon exchange is recommended to supplement the compliance market, with the mandatory emissions trading system (ETS) set to be implemented from 2028 onwards. The provisions will also allow for participation under Article 6 of the Paris Agreement.

Standard Chartered Bank and CIX shared their experiences in operating the voluntary carbon credit exchange in Singapore and discussed the next steps in setting up a similar operation in Vietnam.

In 2022, the Vietnamese government issued Decree No.06/2022/NĐ-CP and a National Strategy for Climate Change until 2050, in which the country commits to achieving net-zero GHG emissions by 2050 – with a midterm target of reducing 43.5 per cent below business-as-usual levels by 2030.

The decree also includes provisions for developing a national ETS, with criteria for sectors and facilities to first conduct a GHG inventory and then to be allocated allowances. There are currently 1,912 facilities subject to GHG inventory requirements.

Nguyen Thuy Hanh, deputy general director and head of Corporate, Commercial, and Institutional Banking at Standard Chartered Vietnam

Standard Chartered has been acting as a strong partner on environmental, social, and governance matters and sustainable finance for its clients, with increasing focus on helping them to decarbonise and transition. The bank has set ambitious targets to reach net-zero carbon emissions from financed activity by 2050, including interim 2030 targets for the most carbon-intensive sectors and a target to mobilise $300 billion of sustainable finance by 2030.

This includes the facilitation of green and social bond raising, the provision of funding commitments to green and social causes, advisory services to support its clients on their own journeys to net-zero, and the option of sustainability linked loans. The bank expanded its sustainable finance asset books to over $13 billion in 2022, representing a 30 per cent growth on-year.

As per Standard Chartered’s Sustainable Finance Impact Report 2022, Vietnam has recorded over $50 million in renewable energy exposure and another $50 million in business banking loans.

“With over 30 sustainable finance product variants and a team of 100 specialists skilled in various areas of the sustainability practice, we are confident in helping clients at various stage of their ESG journey confidently access the most innovative services and products for sustainable finance, transition finance, blended finance, and carbon markets,” Hanh told VIR in a recent interview.

Standard Chartered Vietnam takes lead in sustainability efforts Standard Chartered Vietnam is continuing to lead the way in sustainability and, in turn, drive growth for its customers and the economy at large.

Accompanying customers on ESG journey Nguyen Thuy Hanh, deputy general director and head of Commercial, Corporate and Institutional Banking at Standard Chartered Vietnam, digs into the importance of environmental, social, and governance (ESG) for business development, and how Standard Chartered Vietnam has supported its customers on the journey.