Standard Chartered Bank Vietnam, in partnership with the Department of Climate Change and Climate Impact X (CIX), recently held a seminar on establishing a voluntary carbon credit exchange in Vietnam. The event was attended by representatives from various ministries, financial institutions, and technical consulting firms. The purpose of the workshop was to discuss and share views, experiences, and proposals for developing the voluntary carbon market in Vietnam.
Nguyễn Thúy Hạnh, Head of Corporate, Commercial & Institutional Banking at Standard Chartered Bank Vietnam, emphasized the importance of transitioning to green production and business operations to attract foreign investment. The establishment of a voluntary carbon credit exchange is seen as a strategic move towards achieving net-zero emissions by 2050. Standard Chartered is committed to providing sustainable products and services, as well as consulting for businesses to reduce emissions and meet the net-zero target.
During the seminar, participants discussed issues related to building and operating a voluntary carbon credit exchange and outlined a roadmap for developing the carbon market in Vietnam by 2025. It was suggested that a pilot voluntary carbon exchange be established to supplement the compliance market. The mandatory Emission Trading System (ETS) is set to be implemented from 2028, allowing participation under Article 6 of the Paris Agreement.
Standard Chartered Bank and CIX shared their experiences in operating a voluntary carbon credit exchange in Singapore and discussed the next steps to establish one in Vietnam. The bank has been a partner in environmental, social, and governance (ESG) and sustainable finance initiatives, with a focus on helping clients decarbonize. Standard Chartered has ambitious targets to achieve net-zero carbon emissions by 2050, including interim 2030 targets for carbon-intensive sectors and a goal to mobilize $300 billion of Sustainable Finance by 2030. This includes facilitating green and social bond raising, providing funding commitments to support green and social causes, offering advisory services for clients’ journeys to net-zero, and facilitating Sustainability Linked Loans.
Standard Chartered’s sustainable finance asset books have expanded to over $13 billion in 2022, representing a year-on-year growth of 30%. The seminar on establishing a voluntary carbon credit exchange in Vietnam underscores the bank’s commitment to promoting sustainable finance and assisting Vietnam in its transition towards a greener economy.