A new interdisciplinary cooperation initiative aimed at promoting sustainable finance and supporting Vietnam's green transition roadmap was officially launched in Hanoi on January 27.
The project, titled “Shifting Investment Towards Green Transformation” (SHIFT), is being implemented through a partnership between Vietnamese government agencies and six domestic and international organizations. The initiative underscores a collective commitment to accelerating green investment and finance in support of Vietnam’s energy transition.
SHIFT is part of the International Climate Initiative (IKI) of the Federal Republic of Germany and is funded by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV).
As a collaborative effort, SHIFT aims to promote the deployment of green and climate-friendly technologies and solutions, contributing to Vietnam's goal of achieving net-zero emissions by 2050. The project focuses on capacity building and knowledge enhancement for both public and private sector stakeholders, particularly in the fields of green finance and energy transition.
Speaking at the launch, Ms. Pham Thi Thanh Tung, Deputy Director of the Department of Credit for Economic Sectors under the State Bank of Vietnam (SBV), highlighted the massive scale of the challenge. Vietnam’s capital requirement for its green transition is estimated to be between $670 billion and $700 billion.
This enormous demand necessitates the diversification of capital mobilization channels, with a particular emphasis on increasing private sector participation, developing capital markets, and ensuring the efficient allocation of financial resources.
Ms. Tung also stressed the importance of further enhancing the banking system's capacity to implement green finance through synchronized coordination and support from relevant agencies and organizations.
To meet these requirements, she emphasized that the SHIFT Project will contribute to the effective mobilization of medium and long-term capital for the nation’s green transition goals in general, and supports the banking system in enhancing capacity and developing green credit products in particular.
The SBV and participating commercial banks will focus on the effective implementation of technical assistance activities. These efforts aim to strengthen policy-making and green credit execution, develop green financial and credit products, and gradually implement climate-related financial disclosures in accordance with international practices, specifically the Task Force on Climate-related Financial Disclosures (TCFD).
In tandem, the SBV will collaborate closely with the Ministry of Finance and relevant agencies to research and propose sustainable financial instruments, such as green bonds, sustainable bonds, and financial products linked to ESG (Environmental, Social, and Governance) practices. This will expand medium and long-term capital mobilization channels to effectively serve the country’s green transition objectives, in alignment with global green finance trends.
According to a representative from the Ministry of Finance, the launch of the SHIFT project serves as a "policy push," helping to foster an enabling environment for green investment, green finance, and energy transition in Vietnam. It also acts as a platform for policy and technical cooperation, helping Vietnam gradually align with international practices and global standards regarding green finance, carbon markets, and sustainable investment.
“Promoting green finance and clean energy is a complex journey that requires a synchronized policy framework, financial capacity, and specialized technical expertise. By combining the strengths of all parties, SHIFT will drive substantive cooperation and create a ripple effect in support of Vietnam’s development and climate goals,” said Ms. Alexandra Westwood, Attaché for Economic Affairs and Development Cooperation at the German Embassy in Hanoi.
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