Page 288 - Ebook HTKH 2024

GREEN FINANCE DEVELOPMENT IN ASEAN AND LESSONS FOR

VIETNAM

Pham Thi Thanh Binh , Jahir Islam 145 , Vu Thi Que Anh ,
144
146
147
Vu Nhat Quang

Abstract: Southeast Asia (ASEAN) - a region highly vulnerable to the impacts of climate change
- is pursuing the goal of both promoting economic growth as well as solving the challenges of
environmental pollution & climate change. Green finance is the key to supporting the transition to
achieving these two targets. In 2021, ASEAN committed to reducing emissions, achieving carbon
neutrality by 2050. The research objective of this paper is to analyze the current status of green finance
development in ASEAN and to confirm that ASEAN green finance reaches an average of US$
40 billion a year, too small compared to the need of about US$ 200 billion a year until 2030. Therefore,
the development of green finance in ASEAN is crucial for achieving sustainable growth and addressing
climate change. ASEAN is establishing clear and consistent policies and regulations to support green
finance initiatives.
Keywords: Green finance, sustainable development, solution, ASEAN, Vietnam

1. Introduction
Green finance plays a crucial role in the allocation of capital towards sustainable
economic development. Worldwide, green finance has emerged as a public policy
priority. Green finance is attracting the attention of many countries including ASEAN
and as a fiscal model that combines economic development with environmental

protection. ASEAN is aware of the importance of mobilizing green finance in order to
limit global warming to 1.5°C and prevent catastrophic climate change. Fully
implementing the Paris Agreement to meet this climate target will require US$ 1.5
trillion in green financing annually through 2030, according to the United Nations
Framework Convention on Climate Change. At the same time, raising green finance is
key to meeting Asia’s surging energy demand, which is fueled by economic growth,

population growth, and enhanced energy access. Two-thirds of global energy-demand
growth will occur in Developing Asia by 2040. Therefore, scaling up green finance in
Asia is needed. Several studies have been conducted on the Green Finance Development
in ASEAN typically as Ariyapruchya, S (2022); Yannick Glemarec (2023),
Azhgaliyeva, D., Beirne, J., & Mishra, R. (2023); Setyowati, A. (2023); Sharon Seah
(2022)… Ariyapruchya, S (2022) with the paper “Sustainable finance in Southeast
Asia” confirms that countries in the region recognize the importance of transitioning to

low-carbon, climate-resilient economies. Indonesia, Malaysia, Philippines, Thailand
and Vietnam are implementing various green finance initiatives to support sustainable
development. They are issuing green bonds and promoting investment in renewable
energy projects. Azhgaliyeva, D (2023) recognized the

144 Faculty of Economics, Hanoi Open University, Email: phamthanhbinh297@yahoo.com.vn
145 University of Bristol in the School of Economics
146 Faculty of Political Science and Humanity. Foreign Trade University, Hanoi
147 Institute of World Economics and Politics
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