Green credit development: Perspective from state management agencies

Abstract

To realize the commitment at COP26 to bring net emissions to zero by 2050, Vietnam has been actively implementing policies to promote green credit through the banking system and financial institutions. Playing a key role in policy making and guiding credit institutions towards financing green sectors, the State Bank of Vietnam has issued specific regulations to integrate environmental protection factors into credit extension activities, requesting commercial banks to conduct environmental risk assessments when appraising loans. This helps ensure that capital flows not just bring economic benefits but also contribute positively to environmental and social goals.