Experts share global experience in developing green bond market

15-Jul-2021 Intellasia | Vnexpress | 5:02 AM Print This Post

Piloting issuance of green bonds of various types is one of the ways to accelerate the development of Vietnam’s green bond market, the Global Green Growth Institute has said in its new publication.

In a report it issued in June titled ‘Green Bonds Make More Cents?’, the Global Green Growth Institute (GGGI) analysed key trends in global green bond markets and the experiences that Vietnam could utilise to develop its market. GGGI is a Seoul-based intergovernmental organisation that aims to promote strong, inclusive green growth across developing and emerging countries.

The report was prepared within the framework of collaboration between GGGI and Ministry of Finance and the government of Luxembourg under Vietnam Green Bond Readiness Programme.

At a webinar held to launch the report, Dr Andre Weidenhaupt, director general of the Ministry of Environment, Climate and Sustainable Development of Luxembourg, underscored the close collaboration between Luxembour and Vietnam in climate actions.

Hanh Le, Vietnam Country Representative (until June 2021), GGGI, pointed out that in the context of post-Covid recovery, countries are urged to “build back better” to create a more inclusive and sustainable economy that is climate resilient. “The development of green bonds market would facilitate market-based long-term financing for infrastructure projects in green sectors such as renewable energy, waste, circular economy, and other relevant sectors, which might not be fully satisfied by traditional financial products”, she said.

The report, highlighting international practices in developing green bond markets in Southeast Asia, Central Asia and Europe, suggested a broad range of policy recommendations for Vietnam.

“The report is published at the right time to reinforce green bond market development in Vietnam,” Dr Weidenhaupt noted.

Mushtaq Kapasi, Managing director, Chief Representative, Asia-Pacific, International Capital Market Association, spoke about the recent updates to the association’s green bonds principle (GBP), including an emphasis on the GBP 2021 in the role of independent verifiers in ensuring the green integrity of projects and thus adding to investors’ confidence.

But there is currently limited capacity in Vietnam for this specialised service.

Recognising this gap, GGGI, in partnership with the Climate Bonds Initiative, organised the first green bond verification and certification workshop in Vietnam from June 22 to July 1 with more than 30 participants from eight companies attending. This is considered one of the fundamental building blocks in developing a domestic green bond market for Vietnam as part of its transition to a green economy.

The report and the training workshop are part of the “Green Bond Readiness Programme” funded by the government of Luxembourg and implemented by GGGI, in partnership with Vietnam Ministry of Finance.

The report can be accessed via https://gggi.org/report/green-bonds-make-more-cents/

https://e.vnexpress.net/news/business/experts-share-global-experience-in-developing-green-bond-market-4308025.html

 

Category: Finance, Vietnam

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