A legal framework for promoting green finance: International lessons, current status, and recommendations for Vietnam

Abstract

This study aims to present a comprehensive overview of the global legal frameworks governing green finance, structured around two pillars: (1) the legal framework for green finance; (2) the legal framework for climate finance. By synthesizing leading international standards- such as unified taxonomy regimes, ESG reporting and climate risk management, green bond and green loan principles, carbon credit trading mechanisms, and incentives for issuing green financial instruments- this study examines and evaluates Vietnam’s current green finance regulations. Drawing on a rigorous comparison with international best practices, this study outlines a coordinated policy agenda to strengthen the transparency and efficacy of Vietnam’s legal framework, thereby underpinning the nation’s climate commitments through 2030 and catalyzing green investment at scale to drive sustainable growth.