What are green bonds in Vietnam? What are the incentives for green bond issuers and green bond investors in Vietnam?
What are green bonds in Vietnam?
Pursuant to the provisions of Article 157 of Decree No. 08/2022/ND-CP, green bonds are bonds issued by the Government, local governments and enterprises to raise capital for the projects in the green list specified in Article 154 of Decree No. 08/2022/ND-CP, bringing benefits to the environment.
What are green bonds in Vietnam? What are the incentives for green bond issuers and green bond investors in Vietnam?
What are the incentives for green bond issuers and green bond investors in Vietnam?
Pursuant to the provisions of Clause 8, Article 157 of Decree No. 08/2022/ND-CP:
Green bond issuers and investors are entitled to receive the following incentives:
- Receive incentives for service prices according to regulations of law on prices of securities services and other incentives and assistance as prescribed by law;
- Regarding investment projects using capital raised from issuance of green bonds issued by the Government and local governments, be entitled to receive sufficient capital according to the project progress in the medium-term and annual investment public plans.
From which projects do green bonds bring revenues?
Pursuant to the provisions of Clause 2, Article 150 of the 2020 Law on Environmental Protection in Vietnam:
- Revenues from issuance of green bonds must be recorded and monitored in accordance with regulations of law on bond issuance and used for executing investment projects involving environmental protection and investment projects offering environmental benefits, including:
+ Renovation and upgrading of environmental protection works;
+ Replacement of technologies towards application of best available techniques;
+ Application of circular economy and green economy, and reduction of carbon emissions;
+ Prevention and reduction of environmental pollution;
+ Environmental remediation after environmental emergency;
+ Efficient use of natural resources, soil resources, energy saving and development of renewable energy;
+ Construction of multi-purpose and environmentally-friendly infrastructure;
+ Efficient management of water and treatment of wastewater;
+ Climate change adaptation and investment in development of natural capital;
+ Other investment projects.
- Issuers of green bonds must provide information about environmental impact assessment and environmental licenses of investment projects, and use capital raised from issuance of green bonds to investors.
How is the green bond issuer responsible for disclosure of information?
Green bond issuers are responsible for providing and disclosing information in accordance with the law on bond issuance and providing information as prescribed in Clauses 6 and 7, Article 157 of Decree No. 08/2022/ND-CP.
Green bonds
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6. On an annual basis, on the bond’s maturity date, every green bond issuer shall disclose and provide information on the impact assessment of projects funded by capital from green bonds on the environment as follows:
a) The information to be provided includes decision on approval of EIAR appraisal result (if any), environmental license (if any); results of assessment of environmental benefits offered by projects using green bonds specified in clause 2 Article 150 of the LEP and clause 2 Article 154 of this Decree;
b) Every enterprise issuing green bonds shall disclose information according to regulations of law on issuance of corporate bonds and point a of this clause;
c) Every owner of the investment project using capital from green bonds issued by the Government and local government shall provide the information specified in point a of this clause to the State Treasury (for green bonds issued by the Government) and the provincial People’s Committee (for green bonds issued by the local government) for publishing thereof on the website of the State Treasury and provincial People’s Committee.
7. Regulations on disclosure of information and reporting of management and disbursement of capital raised from issuance of green bonds:
a) The bond issuer which is an enterprise shall comply with regulations on reporting and disclosure of information about management and disbursement of capital raised from issuance of green bonds according to regulations of law on issuance of corporate bonds;
b) On an annual basis, the State Treasury and provincial People’s Committees shall disclose information about disbursement of capital to the projects in the green list using capital raised from issuance of green bonds issued by the Government and local governments on their website.
Thus, the green bond issuer shall disclose and provide information on the impact assessment of projects funded by capital from green bonds on the environment on an annual basis in accordance with regulations of Clauses 6 and 7, Article 157 of Decree No. 08/2022/ND-CP.
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