Nam A Bank and GCPF partner on climate adaptation finance

Nam A Bank and GCPF partner on climate adaptation finance

Nam A Bank and the Global Climate Partnership Fund have teamed up to explore climate adaptation finance in Vietnam.

On November 19, Nam A Bank and the Global Climate Partnership Fund (GCPF) signed an MoU to collaborate on climate adaptation finance. The partnership aims to develop a new joint framework for financing climate-resilient projects in Vietnam, with a particular focus on supporting the agriculture sector.

The agreement underscores Nam A Bank’s commitment to sustainable development in Vietnam. As part of its sustainable development strategy, the bank pays particular attention to the agricultural sector as it is the most vulnerable to climate change. The bank will collaborate with prestigious organisations to research, design, and pilot climate adaptation financial products.

The goal is to strengthen the resilience of farmers and agricultural firms in the face of challenges such as drought and saltwater intrusion while facilitating investment in irrigation technologies, water management, and other innovative adaptation measures.

Vietnam’s green finance market is undergoing a drastic transformation. The government’s net-zero commitments have prompted commercial banks to stimulate green credit in association with environmental protection, thereby promoting sustainable development.

In addition, the establishment of the International Financial Centre (IFC) in Ho Chi Minh City is expected to attract international capital, particularly green finance. By leading cooperation with global funds such as GCPF, Nam A Bank is supporting the city’s efforts to lure large-scale international green financing, thereby strengthening the sustainable financial position of both the city and Vietnam.

Globally, climate adaptation is facing a massive financing gap, as developing countries require around $387 billion per year for adaptation, which is nearly 20 times the currently available capital. The majority of global climate finance currently prioritises mitigation, making it challenging for adaptation projects to secure long-term capital.

A representative of Nam A Bank said, "Climate adaptation finance is an urgent requirement given Vietnam’s net-zero commitments. This collaboration strengthens Nam A Bank's sustainable development strategy while also allowing for partnerships and knowledge exchanges with international partners."

A representative of GCPF said, “We highly appreciate the pioneering role of Nam A Bank in this partnership. The bank has been GCPF’s long-standing partner in Vietnam, with outstanding achievements in the green finance field. This is an important foundation for two sides to exchange expertise and implement projects in the future.”

GCPF is managed by responsAbility Investments AG, one of the world’s leading impact asset managers. The fund invests in three key areas: climate finance, financial inclusion, and sustainable food, contributing to the United Nations Sustainable Development Goals.

Meanwhile, Nam A Bank affirms its position in sustainable development. As of present, the bank has mobilised nearly $200 in international capital for sustainable development. Among them, GCPF has disbursed more than $40 million.

The bank has also completed and adopted its Environmental and Social Risk Management System in line with IFC standards. It is one of the first banks in Vietnam to announce full compliance with Basel III international risk management requirements.

Both sides have partnered since 2018 to implement funding for green credit initiatives. After a long period of cooperation, the bank has been recognised by GCPF as one of the most successful implementing partners in Vietnam.

By Thanh Van

VIR