Page 87 - Ebook HTKH 2024

consumption, water consumption, compliance with environmental laws, policies related
to employees, reports related to responsibility towards local communities, reports

related to green capital market activities. These regulations have raised businesses'
awareness of sustainable development and environmental protection when conducting
production, business, and at the same time, it provides an additional criterion for
investors to consider when choosing investment stocks; But there is no policy
mechanism to encourage businesses in the Sustainable Development Index basket, as
well as financial incentives and incentives and non-financial for organizations issuing
green stocks, causing investment in green stocks to have a low proportion.
In a narrow sense, green insurance is environmental pollution liability insurance;

in a broader sense, it refers to insurance that covers programs for environmental risk
management and resilience as well as cutting-edge products that support low-carbon
solutions (UNEP, 2017). Green insurance is classified into the following groups:
Environmental liability insurance (including pollution liability insurance, contractor
pollution liability insurance, commercial pollution liability insurance, facility pollution
liability insurance, lender environmental insurance...). Green insurance for motor

vehicles (with forms such as reduced insurance premiums for hybrid vehicles for electric
cars, boats and yachts, discounts for cars using alternative energy sources such as
biodiesel, electricity, natural gas, hydrogen or ethanol...), Green insurance for real estate,
Green renewable energy insurance (construction and engineering risk insurance policy
during the development phase of renewable energy projects such as solar and wind
energy, which require very expensive technology, high risk and long payback period),
Green agricultural insurance, Green tourism insurance, Green health and life insurance

(Nguyen Doan Chau Trinh, 2022). The legal framework for green insurance currently
stops at the Environmental Protection Law 2020 and Decree No. 19/2015/ND-CP dated
February 14, 2015 of the Government detailing the implementation of a number of
articles of the Law on Environmental Protection (this Decree detailing the
implementation of a number of articles of the 2014 Environmental Protection Law has
expired and been replaced by the 2020 Environmental Protection Law, but this Decree

is still in effect). These two legal documents only regulate Liability Insurance for
compensation for environmental damage, including the following contents:
The first, organizations and individuals buy liability insurance to compensate for
environmental damage including oil and gas activities (search, exploration, mine
development and oil and gas exploitation activities), chemical production and trading,
using specialized ships to transport petroleum, petroleum products or other dangerous
goods when operating in seaport waters and Vietnamese waters, storage, transportation
and treatment of hazardous waste, transportation of dangerous goods.

The second, with insurance objects, Decree No. 19/2015/ND-CP stipulates based
on type, scale, nature, location of operation, the Ministry of Natural Resources and
Environment shall preside over and coordinate with the Ministry of Finance and

79