Participants attended the seminar on operating a voluntary carbon credits exchange. – Photo courtesy of the bank

HÀ NỘI – Standard Chartered Bank Vietnam, in collaboration with the Department of Climate Change and Climate Impact X (CIX), has organised a seminar on establishing a voluntary carbon credit exchange in Việt Nam.

The event was joined by representatives from the Ministry of Natural Resources and Environment, the Ministry of Finance, other relevant ministries, as well as the Vietnam Security Depository (VSD), the Hà Nội Stock Exchange (HNX) and representatives from financial institutions and technical consulting firms.

The workshop was an opportunity for participants to share views, experiences and proposals for developing the voluntary carbon market in Việt Nam.

Nguyễn Thúy Hạnh, Head of Corporate, Commercial & Institutional Banking at Standard Chartered Bank Vietnam said “Việt Nam is a potential key growth market in the world, but to facilitate foreign investment, Vietnamese firms need to transition to green production and business operation.

"The establishment of a voluntary carbon credit exchange is a strategic move in the direction of reaching net zero emissions by 2050.

"Standard Chartered is committed to providing sustainable products and services, as well as consulting for businesses in their investment and financial plan towards reducing emissions to achieve the net zero target.”

At the event, participants discussed issues of building and operating a voluntary carbon credit exchange, and a roadmap for developing the carbon market in Việt Nam by 2025.

A pilot voluntary carbon exchange is recommended to supplement the compliance market.

The mandatory Emission Trading System (ETS) will be officially implemented from 2028 onwards and provisions will allow for participation under Article 6 of the Paris Agreement.

Standard Chartered Bank and CIX shared experiences in operating a voluntary carbon credit exchange in Singapore and the next steps to set one up in Việt Nam.

Standard Chartered has been a partner on ESG and Sustainable Finance for its clients, with an increasing focus on helping clients decarbonise.

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 US$300 billion of Sustainable Finance by 2030.

This includes the facilitation of green and social bond raising, provision of funding commitments to green and social causes, advisory services to support clients on their own journeys to net zero and facilitation of Sustainability Linked Loans.

The bank has expanded its sustainable finance asset books to over $13 billion in 2022, representing a 30 per cent year-on-year growth. – VNS