22.08.2022, 22:25

Green credit can help mitigate climate change impacts on Mekong Delta: conference

 

The delta is one of the world’s most vulnerable regions to climate change, with communities and the environment there faced with rising sea levels and salinity intrusion as a result.

Green finance could help prevent climate change impacts by funding energy efficiency and renewable energy projects, while green banking could help raise awareness of climate change and sustainability, and encourage people to adopt more environment-friendly practices, experts said.

Speaking at the seminar titled ‘Green Credit in the Mekong Delta - Opportunities, Challenges and Development Trends’, Nguyen Quoc Binh of the HCM City University of Economics’ Vinh Long Province campus said economic activities in the delta were still largely dependent on exploiting natural resources and cheap labour.

Many provinces there still prioritise short-term economic development rather than long-term sustainable goals associated with social security and environmental protection.

“Green credit will [persuade] businesses to shift to environmentally friendly businesses and actively support the community.”

Dr Nguyen Huu Huan also of the HCM City University of Economics said: “There is a close relationship between green banking and climate change in the Mekong Delta. Therefore, green banking can help mitigate the impacts of climate change in the Mekong Delta.”

So green banking, if implemented well, would help stop large polluting projects right at the start, and would be an effective solution for transforming the nation’s economy towards green growth, he said.

Ly Nhat Truong, director of the State Bank of Vietnam’s Vinh Long office, said banks in the province had been financing green projects in hi-tech and clean agriculture and renewable energy and increasing green consumer loans.

As of June 30 the total outstanding green loans in the province were worth VND700 billion (US$29.9 million), mainly focused on two areas, clean agriculture and renewable energy, he added. 

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