Welcoming Ms. Michele Wee and the delegation of Standard Chartered Bank to work, Deputy Minister Le Cong Thanh sent his congratulations on the occasion of the Bank's 120th anniversary of operations in Vietnam. The Deputy Minister commented that 120 years is a long journey, showing the bank's interest and commitment to the Vietnamese market.
Following Deputy Minister Le Cong Thanh, General Director of Standard Chartered Bank Michele Wee highly appreciated the support from the Ministry of Natural Resources and Environment over the years and expressed his desire to continue discussing with the Ministry of Natural Resources and Environment on two main contents including: Continuing to implement the Just Energy Transition Partnership (JETP) after COP28 and promoting the carbon credit market in Vietnam.
According to Ms. Michele Wee, the Glasgow Finance Alliance for Net Zero (GFANZ) plans to hold a Business Forum on March 28 in Hanoi . Standard Chartered Bank will support GFANZ in this event and wishes to coordinate with the Ministry of Natural Resources and Environment to develop a specific agenda, including a list of domestic and foreign guests as well as outline key issues to be discussed at the event.
In implementing JETP, the main purpose is to mobilize foreign capital for renewable energy projects in Vietnam. These funds can be mobilized in two forms: lending or direct investment in renewable energy projects. Before JETP, Standard Chartered Bank had participated in supporting certain loans for renewable energy projects in Vietnam. However, with the goal of reducing net emissions to “net zero” by 2050 as committed by Vietnamese Prime Minister Pham Minh Chinh at COP26, the capital needed for the energy transition is very large, and Standard Chartered Bank itself as well as many other domestic banks are not capable of supporting individually.
Accordingly, through the upcoming Business Forum, the Bank hopes to promote the implementation of JETP and attract more foreign capital into Vietnam. The Bank proposes to select a few specific projects so that the Bank and investors can agree on the necessary capital for implementation, thereby being able to lend. At the same time, the Bank also hopes that the Government, ministries and sectors will provide policy support so that the pilot project can be implemented effectively.
Regarding the second issue related to promoting the carbon credit market, Ms. Michele Wee hopes to connect the Ministry of Natural Resources and Environment with the Global Voluntary Carbon Exchange (CIX), headquartered in Singapore. In particular, CIX has proposed sending a delegation to work with the Ministry of Natural Resources and Environment in April to further discuss the issue of forestry carbon credits and coordinate the development of the carbon credit market in Vietnam, as well as issues related to carbon market management.
In addition, in the coming time, the Director of Global Carbon Markets of Standard Chartered Bank plans to work with the Ministry of Natural Resources and Environment in this field. According to Ms. Michele Wee, this is an expert with experience in building global voluntary market initiatives, through which she can share with Vietnam information on the practices, realities and trends of the world carbon credit market.
Standard Chartered Bank also expressed its desire to continue supporting the Ministry of Natural Resources and Environment in other activities such as organizing training sessions to raise awareness about carbon credits. Participants may include local banks and local partners; at the same time, it continues to implement the memorandum of understanding with the Ministry of Natural Resources and Environment and wants to hear opinions and suggestions from the Ministry to expand cooperation activities.
Acknowledging the sharing from Standard Chartered Bank, Deputy Minister Le Cong Thanh assessed that these are practical ideas and will contribute to supporting Vietnam in achieving its goals towards net zero.
Regarding the development of the carbon market, the Ministry of Natural Resources and Environment is studying the amendment of Decree No. 06/ND-CP on carbon credit management and is expected to submit it to the Government in the middle of this year. Accordingly, the Ministry of Natural Resources and Environment wishes to cooperate with Standard Chartered Bank and CIX to continue exchanging information and expertise to support Vietnam in the development and management of carbon credit trading floors; at the same time, invest in connecting the Vietnamese carbon credit trading floor with carbon credit trading floors in the region and the world.
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