How would you assess Vietnam’s progress in sustainable development and green finance compared to other countries in the region?

According to the “Green Economy Report 2025” for Southeast Asia, over the past year we have witnessed significant advancements towards meeting international climate pledges, including the ambitious target of reducing 600 million tonnes of CO₂e emissions. Notably, four of six regional countries - Indonesia, Malaysia, Thailand, and Vietnam - have set new corporate emission reduction targets, while five of the six - those four plus the Philippines - have developed corporate roadmaps for sustainability.

Regulatory improvements have also been implemented, with mandatory emissions reporting now in place in Indonesia and Malaysia.

Despite these positive strides forward, we recognize that there is still much work to be done. While investments have increased from $6 billion in 2023 to $8 billion in 2024, we face a significant funding gap of $100 billion a year. Moreover, a 13 per cent reduction in the current emissions trajectory is essential to achieve our regional goals.

Vietnam, together with other countries in the region, must continue to drive forward with determination and commitment to secure a sustainable future.

What should the Vietnamese Government do to accelerate this transformation?

I would like to present a set of key recommendations for the Vietnamese Government and policymakers to effectively address the pressing challenges of climate change and sustainable development.

Firstly, we must ensure clarity and consistency in our climate policies, roadmaps, and carbon pricing mechanisms. This will make our targets both practical and actionable for investors and corporations.

Secondly, it is crucial to harmonize regional standards and systems for carbon credit registration, integrity, and power purchase agreements (PPAs), among others. This will facilitate cross-border trade, investment, and the cultivation of markets on a larger scale.

Furthermore, we should strategically deploy public funds to catalyze private investment through blended finance structures. This approach will unlock significant capital for green projects.

Additionally, it is essential that new green industries contribute to talent and workforce development while avoiding negative environmental impacts. This will ensure long-term sustainability and enable the implementation of systems-level solutions at scale.

These recommendations aim to tackle systematic obstacles such as balancing economic growth with the transition to a low-carbon economy, addressing the lack of carbon pricing, enhancing regional cooperation, aligning economic incentives, and improving financing mechanisms. By taking these steps, we can pave the way for a sustainable and prosperous future for all.

Could you please share more suggestions for policymakers to support the financing of the transition to net-zero?

To effectively support the financing of the transition to net-zero and address resilience to climate change-related risks, we must implement several key policy enablers.

Firstly, coordination at all levels on sustainable finance and climate risk management policies is crucial. This includes international and regional coordination to drive harmonization or at least interoperability. Fragmentation and lack of compatibility in policy frameworks will hinder the scaling up of sustainable finance and effective risk management. Additionally, coordination between various domestic agencies - such as central banks, banking regulators, securities regulators, and environmental government agencies - is essential to ensure the effectiveness of the overall policy package.

Secondly, sustainability disclosures play a vital role. Implementing mandatory or comply-or-explain regimes for sustainability disclosures, with an initial focus on climate-related information, for both financial and non-financial entities will empower financial institutions and the market to allocate capital towards activities that support the net-zero transition.

Thirdly, to accelerate our transition towards a low-carbon economy, it is imperative that we establish robust regulatory incentives for the financing of qualified “green” projects.

Fourthly, it is crucial that we embed sustainability, including climate change-related risks, into the governance, strategy, and risk management frameworks of financial institutions. By doing so, we not only promote financial stability but also ensure that these institutions are well-positioned to finance the transition to a more sustainable future.

Fifthly, carbon pricing, especially through carbon emissions trading systems, serves as a primary mechanism for capital allocation and emissions reduction, playing a pivotal role in our efforts to mitigate climate change.

In addition, leveraging technology must be an integral part of building a sustainable finance and climate risk management ecosystem. This should initially focus on data generation, storage, standardization, and accessibility. Such efforts will support analytical work, due diligence, ongoing monitoring, and reporting by various stakeholders within the ecosystem.

And last but not least, we must prioritize capacity building by developing a vibrant sustainable finance research community and nurturing talent. This will support the redirection of financing flows towards a low-carbon economy, ensuring we have the expertise and innovation needed to drive sustainable growth.

By taking these steps, we can close the financing gap and enhance our resilience to climate-related risks, paving the way for a sustainable future.

How is Standard Chartered reinforcing its commitment to sustainable finance and the net-zero transition?

At Standard Chartered Group, we published our interim targets and methodology for our pathway to net-zero by 2050 in October 2021 and further refined our approach in March 2022. We started reporting externally against key net-zero metrics on a quarterly basis in 2023.

While we currently provide financial services to clients, sectors, and markets that contribute to greenhouse gas emissions, we are committed to achieving net-zero in our own operations by the end of 2025 and in our financed emissions by 2050.

Standard Chartered has pledged to mobilize $300 billion in sustainable finance by 2030 and is actively collaborating with clients to help them achieve their climate ambitions. We aim to generate $1 billion in sustainable finance income by 2025, including transition finance transactions. In 2024, we reported $982 million in income from sustainable finance, keeping us on track to meet our 2025 target.

In Vietnam, Standard Chartered Bank (Vietnam) Limited is committed to mobilizing private sector financing for the net-zero transition, including for Vietnam through the Just Energy Transition Partnership (JETP) and the development of a carbon market.

As of February 2025, there were eight projects that had been put forward by the International Partners Group (IPG), endorsed by the Ministry of Industry and Trade (MoIT), and we look forward to their approval. We also appreciate the revised National Power Development Plan VIII (PDP8) with its ambitious goals to develop diverse, balanced, and regionally-aligned power sources; promote renewable and green energy; and efficiently use both domestic and imported fossil energy. We are looking forward to the release of a new PPA template, which is essential to private investment.

How has Standard Chartered supported the development of Vietnam’s carbon market, and what are your recommendations for the country moving forward?

We are committed to working with the government to develop the national system for registering greenhouse gas (GHG) quotas and carbon credits, and with the Hanoi Stock Exchange to develop the domestic carbon exchange.

I would like to take this opportunity to encourage Vietnam to join the ASEAN Common Carbon Framework (ACCF), a significant initiative already embraced by carbon market associations from Malaysia, Indonesia, Singapore, Thailand, and other ASEAN countries. By participating in this framework, Vietnam can play a crucial role in advancing regional efforts towards sustainable development and carbon market integration.

Our recommendations for Vietnam include advocating for the adoption of globally-recognized standards, such as Verra and the Gold Standard. These are essential for attracting international investment and ensuring a credible framework for the use and integrity of carbon credits. By aligning with these standards, Vietnam can enhance its environmental credentials and contribute meaningfully to the global fight against climate change.