Citi signs deal with ministry to support Vietnam climate action commitment

The signing that took place in the U.S. on May 11 was attended by visiting Prime Minister Pham Minh Chinh and U.S. Secretary of Commerce Gina Raimondo.

The MOU seeks to facilitate exchange of information, sharing of knowledge and technical assistance to further accelerate the creation of mechanisms and policies to support low-emission development to deliver Vietnam’s "net zero" emissions target by 2050.

"This MOU will promote regular exchanges between the U.S. private sector and the Ministry of Natural Resources and Environment on ESG topics, specifically to support Vietnam’s climate action commitment at COP26 under the United Nations Framework Convention on Climate Change," Ramachandran A S, Vietnam Citi country officer, said.

Last year Citi made a $1 trillion global commitment to sustainable finance, which includes $500 billion each for environmental finance and $ social finance, in alignment with the agenda of the UN’s Sustainable Development Goals.

In 2020 and 2021 Citi financed or facilitated a total of $222 billion, which puts it well on track to meet the $1-trillion commitment by 2030.

Earlier this year Citi unveiled a preliminary plan to reach net zero emissions by 2050. The plan also contains its net zero transition principles, which guide its net zero efforts to drive a responsible and orderly transition that minimizes economic disruption while also contributing to broader sustainable development objectives.

In 2021 Citi also co-founded the Net Zero Banking Alliance, which will help establish an industry framework for decarbonizing the banking sector.

Minister of Natural Resources and Environment Tran Hong Ha said: "We would like to cooperate with Citi in developing selection criteria and the list of projects driving the transition to a low-carbon economy.

"We also look forward to Citi’s participation in financing and providing capital support for low-carbon energy projects in Vietnam."

The Ministry of Natural Resources and Environment and Citi Vietnam have signed an MoU on May 11. Photo courtesy of Citi Vietnam

The bank has recently been pioneering ESG in Vietnam, financing the import of wind turbines, and is also working with a foreign-invested commodity trading company to purchase coffee that is grown in an environmentally friendly way from Vietnamese farmers and traders.

"Finance has a critical role to play in supporting companies in reducing their environmental impact," Ramachandran said.

"Citi can support this work by helping our clients make investments in clean energy infrastructure and technology.

"Citi is keen to be one of the world’s leading banks driving the transition to a low-carbon economy, partnering with our clients to achieve their sustainability goals."