Thursday, 27/01/2022 17:42 (GMT+7)
Aiming to achieve the net zero target by 2050, according to HSBC, Vietnam needs to significantly invest in renewable energy and green infrastructure.
Crescent Lake in Phu My Hung Urban Area, District 7, Ho Chi Minh City. (Photo: VNA)
To support the climate goals and commitments of the Government of Vietnam at the United Nations Climate Change Conference 2021 (COP26), especially the goal of transitioning to a economy with net zero emission by 2050, HSBC Vietnam on January 25 announced its commitment to arranging up to 12 billion USD of direct and indirect sustainable financing for Vietnam and the corporate sector in the country by 2030.
The bank, in its letter to the Government, expressed its plan to financially and expertly back corporates’ promising and critical green and sustainable projects in Vietnam, which play a vital role in decarbonising the country’s economy.
This forms part of HSBC’s broader net zero pledge to help customers transition their business models and decarbonise, by prioritising 750 billion USD to 1 trillion USD in finance and investment by 2030.
According to the HSBC report titled “Tackling the Next Crisis,” Ho Chi Minh City is among many cities in Asia (besides Mumbai, Shanghai, Bangkok and Jakarta) that are increasingly threatened by rising sea levels. The World Bank also warned that Vietnam is one of the top five countries likely to be affected by climate change, adding the forecast that climate change will reduce the country’s national income by up to 3.5 per cent by 2050.
HSBC Vietnam will mobilise funds from local and international financial markets to provide a wide range of sustainable solutions in green finance, debt finance, supply chain, trade, green deposits and investment products. HSBC incorporates prudent risk assessment and international green finance standards in providing these solutions.
“The Vietnamese Government has clear ambitions to tackle climate change through both green finance and technology transfer,” said Tim Evans, CEO of HSBC Vietnam. “These commitments give the private sector more confidence to borrow and invest.”/.
BTA