Vietnam is moving to pair its expanding green credit system with a domestic carbon market. Green credit outstanding reached over 856,000 billion VND by June 2026, up 9.87% from the end of 2025, with most lending going to agriculture, forestry, fisheries, and green energy. The State Bank of Vietnam says credit alone cannot cover the country's green transition costs, and the ADB estimates Vietnam needs around 368 billion USD in additional climate investment by 2040. A pilot emission quota trading system starts on June 29, 2026 and runs through 2028. It will cover thermal power, iron and steel, and cement, with more than 511 million tonnes of CO2 equivalent in allowances allocated for 2025-2026. BIDV is the sole clearing bank for the pilot. The idea is to turn verified emission reductions into a financing source for businesses, reducing pressure on bank credit and state budgets. The article also flags a practical problem: carbon revenue often arrives long after upfront project costs. Banks need clear rules on measurement, verification, and pricing before they can treat carbon credits as reliable cash flow in lending decisions.
