During a seminar co-hosted by the IFC and the State Bank of Vietnam (SBV) in Hanoi on September 21, IFC's Regional Director for the Asia-Pacific Financial Institutions Group Allen Forlemu said that changing the way banks operate and transitioning towards sustainability is absolutely essential.

According to him, climate change response is the cornerstone of the World Bank Group's strategic approach. IFC works with financial institutions, banks, businesses, and other development partners to provide financing for critical investment needs in climate change adaptation and mitigation. These essential funding efforts aim to promote a more sustainable global economy in the face of the impacts of climate change.

Delegates at the event shared global experience in supporting the transition to green banking, with a particular focus on the importance and opportunities for Vietnam.

SBV Deputy Governor Pham Thanh Ha said the Vietnamese Government has issued various policies, strategies, and plans, including the Vietnam Green Growth Strategy (VGGS), related action plans, the National Determined Contributions (NDCs) and Vietnam’s Sustainable Development Goals (VSDGs), which are paving the way for sustainable green growth in Vietnam.

To achieve the new climate goals, he said Vietnam needs to focus on expanding green infrastructure, especially in areas such as green energy, green transportation, energy efficiency, and green construction. It should also shift from heavy and "brown" industries to a low-carbon and sustainable emissions pathway. However, this transition poses a challenge due to the current shortage of long-term funding sources.

According to him, the Vietnamese Government is in the process of introducing a green finance classification system to promote and guide the expansion of sustainable investments./. VNA