ADB and SBV launch $2 million green banking initiative to advance climate finance

ADB and SBV launch $2 million green banking initiative to advance climate finance

The Asian Development Bank (ADB) and the State Bank of Vietnam (SBV) jointly launched a $2 million initiative on green banking capacity development, aiming at helping Việt Nam scale up green and climate finance, the ADB said on Friday.

A farmer uses drone to spray pesticides for his paddy field in An Giang Province. The Asian Development Bank (ADB) and the State Bank of Vietnam (SBV) jointly launched a $2 million initiative on green banking capacity development in Việt Nam. — VNA/VNS Photo Trần Việt

The initiative is a component of the technical assistance project “Inclusive and Climate Finance” funded by the Japanese Government through the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR).

The project seeks to strengthen green banking practices and enhance the capacity of Việt Nam’s banking sector to scale up green and climate finance.

At the inception workshop marking the implementation of the $2 million component, more than 80 participants from SBV, relevant ministries and agencies, development partners, commercial banks, and business associations discussed key topics such as climate risk assessment, macro-economic impacts of carbon pricing, the role of credit institutions in carbon market development, and green bond issuance.

Participants also exchanged perspectives on Việt Nam’s green taxonomy and identified next steps to help the banking sector advance sustainable and transition finance.

At the workshop, Shige Watanabe, Minister-Counselor, Chief of Economic Section, Embassy of Japan expressed his expectation that the project will use Japanese public resources effectively and contribute meaningfully to Việt Nam’s green and inclusive growth.

Maria Joao M. Pateguana, Unit Head of Private Sector Development at ADB’s Vietnam Resident Mission, emphasised that the technical assistance aligns closely with ADB’s Country Partnership Strategy for Việt Nam and support the Government’s broader financial sector reforms. 

She underscored that continued dialogue and targeted support will help unlock the banking sector’s potential for sustainable growth while strengthening the sector’s ability to manage climate risks. 

Bizhub