Vietnam continues to develop regulatory structures incentivizing a shift to a green economy. The proposed classification framework for green credit and green bonds is introduced via the Draft Decision of the Prime Minister on environmental criteria and certification for projects eligible for green credit and green bonds (“Draft Decision“) released in December 2022. This Draft Decision identifies investment projects eligible for environmental incentives in the form of green credit (Tín dụng xanh) and green bonds (Trái phiếu xanh) as provided for in Articles 149 and 150 of Law No. 72/2020/QH14 on Environmental Protection (“Law on Environmental Protection“), and includes a number of definitions related to the green economy in Vietnam. Relatedly, a regional classification structure, namely, the ASEAN Taxonomy for Sustainable Finance – Version 2 was released in March of this year, providing updated science-based methods for classifying activities according to their contribution to the environment1.
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