The banking sector plays an important role in promoting green and sustainable growth (Photo: VNA) Hanoi (VNS/VNA) - The banking sector plays a keyrole in “green” investment, including directing credit flow into environmentally-friendlysectors and restricting flow into projects which might have negative impacts onthe environment.
This was highlighted at a conference about developing greenbanking in Vietnam organised by the Banking Strategy Institute in Hanoi onNovember 8.
The conference aimed to enhance awareness and corporateresponsibility in the banking sector of environmental protection, responses toclimate change and gradually making banking activities more ‘green’.
Focus would be placed on directing credit flow intoeco-friendly projects, boosting green production and services as well as cleanand renewable energy so as to contribute to promoting green and sustainablegrowth.
Deputy Director of the Banking Strategy Institute Pham Xuan Hoesaid that as Vietnam faced a number of environmental problems, includingclimate change, natural disasters, drought, floods and pollution, the goal overthe next two decades would not only be achieving rapid growth but alsosustainable economic development.
Hoe said to successfully implement the national green growthstrategy in 2011-20, the banking sector played a very important role inpromoting the transition towards sustainable growth though credit policieswhich target environmentally-friendly projects.
The banking sector was the bridge connecting depositors andborrowers and also participated in project risk management, includingenvironmental risks. At the same time, banking activity can also promoteenvironmental protection through the application of e-banking and non-paperpolicies.
“The banking sector plays a significant role in greeninvestment and directing credit to eco-friendly sectors,” Hoe said, adding thatcredit policies which prioritised environmentally-friendly projects wouldencourage borrowers to implement green projects rather than those that damagethe environment.
Green credit policies were also key to saving energy,reducing emissions and directing the economy towards green growth, Hoe said.
The Governor of the State Bank of Vietnam issued Decision No1640/QD-NHNN approving the scheme on green bank development in Vietnam onAugust 7.
The scheme aims to gradually increase the lending to greenindustries and sectors while accelerating the application of new technologiesand environmentally-friendly practices among bank clients, promotinge-transactions, new services and modern payment instruments.
Under the scheme, by 2025, all banks in the country woulddevelop their internal regulations on environmental and social risk managementin their lending activities. In addition, all banks would conduct theassessment of social and environmental risks in their lending activities andapply environmental standards for all projects receiving loans from the banks.
The environmental risk assessment will be integrated as partof the banks’ credit risk assessment.
As part of the scheme, 10 to 12 banks would establishspecialised units for social and environmental risk management and at least 60per cent of the banks would have access to green capital resources and providegreen credit.-VNS/VNA
This was highlighted at a conference about developing greenbanking in Vietnam organised by the Banking Strategy Institute in Hanoi onNovember 8.
The conference aimed to enhance awareness and corporateresponsibility in the banking sector of environmental protection, responses toclimate change and gradually making banking activities more ‘green’.
Focus would be placed on directing credit flow intoeco-friendly projects, boosting green production and services as well as cleanand renewable energy so as to contribute to promoting green and sustainablegrowth.
Deputy Director of the Banking Strategy Institute Pham Xuan Hoesaid that as Vietnam faced a number of environmental problems, includingclimate change, natural disasters, drought, floods and pollution, the goal overthe next two decades would not only be achieving rapid growth but alsosustainable economic development.
Hoe said to successfully implement the national green growthstrategy in 2011-20, the banking sector played a very important role inpromoting the transition towards sustainable growth though credit policieswhich target environmentally-friendly projects.
The banking sector was the bridge connecting depositors andborrowers and also participated in project risk management, includingenvironmental risks. At the same time, banking activity can also promoteenvironmental protection through the application of e-banking and non-paperpolicies.
“The banking sector plays a significant role in greeninvestment and directing credit to eco-friendly sectors,” Hoe said, adding thatcredit policies which prioritised environmentally-friendly projects wouldencourage borrowers to implement green projects rather than those that damagethe environment.
Green credit policies were also key to saving energy,reducing emissions and directing the economy towards green growth, Hoe said.
The Governor of the State Bank of Vietnam issued Decision No1640/QD-NHNN approving the scheme on green bank development in Vietnam onAugust 7.
The scheme aims to gradually increase the lending to greenindustries and sectors while accelerating the application of new technologiesand environmentally-friendly practices among bank clients, promotinge-transactions, new services and modern payment instruments.
Under the scheme, by 2025, all banks in the country woulddevelop their internal regulations on environmental and social risk managementin their lending activities. In addition, all banks would conduct theassessment of social and environmental risks in their lending activities andapply environmental standards for all projects receiving loans from the banks.
The environmental risk assessment will be integrated as partof the banks’ credit risk assessment.
As part of the scheme, 10 to 12 banks would establishspecialised units for social and environmental risk management and at least 60per cent of the banks would have access to green capital resources and providegreen credit.-VNS/VNA
VNA
