Vietnam’s Ministry of Natural Resources and Environment (MONRE) and Citi Vietnam have agreed to cooperate on an environmental, social and governance (ESG) agenda that aims to facilitate the exchange of information, sharing of knowledge and technical assistance, and accelerate the formation of mechanisms and policies to support low-emission development that will make it possible to deliver net-zero emissions by 2050.
This agreement “will promote regular exchanges between the US private sector and the MONRE on ESG topics, specifically to support Vietnam’s climate action commitment at COP26 under the United Nations Framework Convention on Climate Change”, says Ramachandran A.S., Vietnam Citi country officer.
In early 2021, Citi made a US$1 trillion commitment globally to sustainable finance, which includes a US$500 billion goal for environmental finance and a US$500 billion goal for social finance, aligning with the agenda of the United Nations' Sustainable Development Goals. In 2020 and 2021, Citi financed and facilitated a total of US$222 billion in sustainable finance activity globally, which puts the company well on track to meet its US$1 trillion commitment by 2030.
Citi has recently been pioneering ESG in Vietnam. The bank has been financing the import of wind turbines and is also working with a foreign direct investment company in the commodity trading segment for green financing to purchase coffee that has been grown in an environmentally friendly way from Vietnamese agents and farmers.
The agreement signed by both parties also focuses on scaling funding, with Citi providing information and assistance in a range of areas, including carbon markets, blended finance, biodiversity, and technical support and capacity building.
“Finance has a critical role to play in supporting companies in reducing their environmental impact,” Ramachandran adds. “Citi can support this work by helping our clients make investments in clean energy infrastructure and technology, and is keen to be one of the world’s leading banks driving the transition to a low-carbon economy.”