Signing MOU with MUFG, VietinBank targets US$1b for sustainable financing
Signing MOU with MUFG, VietinBank targets US$1b for sustainable financing
Financial resource mobilization and financing mechanisms play an important role in global efforts to combat climate change. Delivering on climate finance is also one of the four key themes throughout COP28.
IMF’s (International Monetary Fund) Global Financial Stability Report cited data from International Energy Agency (IEA), which forecasts that by 2030, developing economies would need about $2 trillion annually to meet climate goals.
Participating COP28, VietinBank has signed a memorandum of understanding with its strategic partner of MUFG to promote sustainable development and fund mobilization, thereby contributing to the implementation of sustainable goals and ESG practices in Vietnam. In particular, MUFG will use its best efforts to support VietinBank in arranging up to USD 1 billion for ESG financing in order to serve sustainable development projects that are beneficial to environment and society, promoting circular economy.
MUFG and VietinBank have established strategic partnership since 2013. As Japan's largest bank and one of the world's largest bank, MUFG is part of the working group convened by the Glasgow Financial Alliance for Net Zero (GFANZ) supporting the JETP (Just Energy Transition Partnership) initiative for Vietnam.
Under this MoU, in addition to cooperation in ESG finance and technical assistance, MUFG will share ESG implementation experiences, collaborating with VietinBank on joint policy recommendations on ESG Financing to regulators, policymakers, and closely working in the implementation of JETP.
Colin Chen, MUFG’s Head of ESG Finance APAC, said: “MUFG and VietinBank are longstanding partners with many areas of common interests. The MOU we have signed today strengthens our collaboration on promoting sustainable development and sustainable finance in Vietnam. Realizing the UN Sustainable Development Goals (SDGs) is fundamental to Vietnam's National Master Plan and mobilizing additional financial resources accelerates the implementation of the 2030 agenda.”
VietinBank considers ESG practices, promoting sustainable finance and climate finance as a focus of its operations. Prior to its participation in COP28, the Bank issued its Sustainable Finance Framework, which sets out specific guidelines for the financing and management of grants for its portfolio of Green and Social projects. VietinBank also launched the so-called Green Up sustainable finance package, with a total credit scale of VND 5,000 billion and account service incentives for projects meeting sustainable standards.
At the same time, VietinBank also actively participates in many activities such as Vietnam Circular Economy Forum 2023; collaborated with key members of the Asia Transition Finance Study Group to publish research reports, outlining the progress of transition finance in Asia; signed a MOU with the Ministry of Natural Resources and Environment towards realizing Sustainable Development Goals, and many other meaningful activities, in an effort to spread the Bank’s commitment in being a companion of businesses in their journey to net-zero emissions.
Financial resource mobilization and financing mechanisms play an important role in global efforts to combat climate change. Delivering on climate finance is also one of the four key themes throughout COP28.
IMF’s (International Monetary Fund) Global Financial Stability Report cited data from International Energy Agency (IEA), which forecasts that by 2030, developing economies would need about $2 trillion annually to meet climate goals.
Participating COP28, VietinBank has signed a memorandum of understanding with its strategic partner of MUFG to promote sustainable development and fund mobilization, thereby contributing to the implementation of sustainable goals and ESG practices in Vietnam. In particular, MUFG will use its best efforts to support VietinBank in arranging up to USD 1 billion for ESG financing in order to serve sustainable development projects that are beneficial to environment and society, promoting circular economy.
MUFG and VietinBank have established strategic partnership since 2013. As Japan's largest bank and one of the world's largest bank, MUFG is part of the working group convened by the Glasgow Financial Alliance for Net Zero (GFANZ) supporting the JETP (Just Energy Transition Partnership) initiative for Vietnam.
Under this MoU, in addition to cooperation in ESG finance and technical assistance, MUFG will share ESG implementation experiences, collaborating with VietinBank on joint policy recommendations on ESG Financing to regulators, policymakers, and closely working in the implementation of JETP.
Colin Chen, MUFG’s Head of ESG Finance APAC, said: “MUFG and VietinBank are longstanding partners with many areas of common interests. The MOU we have signed today strengthens our collaboration on promoting sustainable development and sustainable finance in Vietnam. Realizing the UN Sustainable Development Goals (SDGs) is fundamental to Vietnam's National Master Plan and mobilizing additional financial resources accelerates the implementation of the 2030 agenda.”
VietinBank considers ESG practices, promoting sustainable finance and climate finance as a focus of its operations. Prior to its participation in COP28, the Bank issued its Sustainable Finance Framework, which sets out specific guidelines for the financing and management of grants for its portfolio of Green and Social projects. VietinBank also launched the so-called Green Up sustainable finance package, with a total credit scale of VND 5,000 billion and account service incentives for projects meeting sustainable standards.
At the same time, VietinBank also actively participates in many activities such as Vietnam Circular Economy Forum 2023; collaborated with key members of the Asia Transition Finance Study Group to publish research reports, outlining the progress of transition finance in Asia; signed a MOU with the Ministry of Natural Resources and Environment towards realizing Sustainable Development Goals, and many other meaningful activities, in an effort to spread the Bank’s commitment in being a companion of businesses in their journey to net-zero emissions.