Model Carbon bank: New green finance solution for Net-Zero

Abstract

Carbon Bank is a model operating with dual goals of economic growth and environmental protection. Yet, this new banking model has not been popular globally and the number of countries adopting this banking model is relatively modest, with most of cases found in large economies. In this regard, to have a deeper perspective on this newly banking setup, the paper, with the support of a diverse set of qualitative research methods, has introduced and discussed the concept of carbon bank coupled with analyzing the international experiences in constructing and developing carbon bank models. In light of these findings, to optimize resources for Net-zero, the study suggests that Vietnam should initially form a state-owned carbon bank model, and then flexibly transform into the private model accordingly to the development of carbon credit market in Vietnam in the coming time.