The official handover of an MoU between the Ministry of Natural Resources and Environment (MoNRE) and Citi Vietnam on support for Vietnam reaching its net zero carbon emissions target took place in the US on May 11, attended by Prime Minister Pham Minh Chinh, who is visiting the country, and US Secretary of Commerce Gina Raimondo.

The purpose of the MoU is to facilitate the exchange of information and the sharing of knowledge and technical assistance to further accelerate the formation of mechanisms and policies to support low-emissions development and deliver the net zero emission target by 2050.

“This MoU will promote regular exchanges between the US private sector and MoNRE on ESG topics, specifically to support Vietnam’s climate action commitment at COP26 under the United Nations Framework Convention on Climate Change (UNFCCC),” said Mr. Ramachandran A.S., Vietnam Citi Country Officer.

In early 2021, Citi made a $1 trillion commitment globally to sustainable finance, which includes a $500 billion goal for environmental finance and a $500 billion goal for social finance, aligning with the agenda of the United Nations’ Sustainable Development Goals. In 2020 and 2021, Citi financed and facilitated a total of $222 billion in sustainable finance activity globally, which puts the company well on track to meet its $1 trillion commitment by 2030.

Earlier this year, Citi unveiled its initial plan to reach net zero emissions by 2050. The plan also introduces Citi’s Net Zero Transition Principles, which are guiding its net zero efforts to drive a responsible and orderly transition that minimizes economic disruption while also contributing to broader sustainable development objectives. In 2021, Citi also co-founded the Net Zero Banking Alliance, which will help establish an industry framework for decarbonizing the banking sector.

“We would like to cooperate with Citi in developing selection criteria and a list of projects driving the transition to a low-carbon economy,” said Minister of Natural Resources and Environment Tran Hong Ha. “We also look forward to Citi’s participation in financing and providing capital support for low-carbon energy projects in Vietnam.”

Citi has recently been pioneering ESG in Vietnam. It is financing the importation of wind turbines and is also working with a foreign company in the commodity trading segment on green financing to purchase coffee grown in an environmentally-friendly way from Vietnamese agents and farmers. This MoU will also focus on scaling funding, with Citi providing information and assistance in a range of areas including carbon markets, blended finance and biodiversity, and technical support and capacity building.

“Finance has a critical role to play in supporting companies in reducing their environmental impact,” said Mr. Ramachandran. “Citi can support this work by helping our clients make investments in clean energy infrastructure and technology. Citi is keen to be one of the world’s leading banks driving the transition to a low-carbon economy, partnering with our clients to achieve their sustainability goals.”