RSS

Credit priority for green energy projects

Credit priority for green energy projects - 

An Binh Joint Stock Commercial Bank (ABBANK) has officially participated in United Nations Environment Program Finance Initiative (UNEP FI) for national target in contributing to prevent climate change, grow green credit debt difference in financial sector, and expressing responsibility to the community and environment.

UNEP FI is a partnership activity between United Nations and private financial institutions in regulating and implementing sustainable development principles through combining the environmental, social, managerial factors, supporting developing countries to carry out policies and reasonable solutions on environment.

With participation of more than 200 financial organizations over the world, UNEP FI assists its members to apply factors relating environmental protection to business activities of enterprises to contribute to setting relationship between the economic development, environmental protection and sustainable development.

Mr. Eric Usher, Global Director of UNEP FI high appreciated ABBANK to become an official member of UNEP FI and believed that ABBANK will be an advanced symbolic example for the others in recognizing importance of environmental issue in bank-finance sector.

Mr. Cu Anh Tuan, General Director of ABBANK shared that ABBANK became an official member of UNEP FI has an important meaning for promoting the green credit growth of ABBANK itself, in particular and contributing to performing national strategy on green growth, in general. This is also a premise to study several products to promote green credit proportion in ABBANK catalog structure.

To carry out Directions 03/CT-NHNN on 24/3/2015 of State Bank of Vietnam on promoting green credit growth and managing environmental and social risks in credit allocation, ABBANK will pay attention to set green credit products with the target towards the projects of environmental protection, energy saving, renewable energy and clean technologies.

In operation mechanism, ABBBAK was and is integrating regulations on managing environmental and social risks into the current credit regulations, prioritizing credit allocation for the projects outside “List of the activities without credit allocation/ Exclusion List”, and classifying list of projects by level of environmental and social risks (high-average-low) through the test questions in order to guarantee complying the criteria on environmental and social protection

ABBABAK is actively deploying three programs of typical loan based on ODA capital with the strict requirements on environmental protection. Among them, there is program of the loan for medium and small enterprises (SMEFPIII) by JICA fund, program of rural financial loan (RDFII) and program of sustainable agricultural development loan (VNSAT) by World Bank fund.

Besides, ABBANK now is a member of Global Trade Fund Program (GTFP) under International Finance Corporation (IFC). This program stimulates and has mechanisms to favor prices for the projects of saving energy and renewable energy funded by the very program.

The ABBANK has recognized that it must comply the criteria on environmental and social protection during the whole process of participation.

VietnamEnergy.vn

Leave your comment on this story