GuarantCo and Standard Chartered Bank collaborate to accelerate climate action in Việt Nam during COP28

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and Standard Chartered (the Bank) have signed a Memorandum of Understanding (MoU) during COP28. — Photo courtesy of the bank

DUBAI — GuarantCo, part of the Private Infrastructure Development Group (PIDG), and Standard Chartered (the Bank) have signed a Memorandum of Understanding (MoU) during COP28 in Dubai, announcing their intention to develop a climate-focused deal framework that aims to increase funding opportunities in Việt Nam and accelerate climate action.

The framework will focus on transactions related to climate change, climate mitigation, energy transition, climate adaptation and climate resilience. Accordingly, Standard Chartered will mobilise between US$200 million and $300 million of financing, while GuarantCo is planning to allocate a maximum of $150 million of guarantee capacity.

Through the MoU, GuarantCo and Standard Chartered will pursue initiatives that allow both companies to deliver on their respective net zero commitments and contribute towards the delivery of the Government of Việt Nam’s climate strategy. In addition, the parties are also considering ways to jointly assist clients in meeting their sustainability strategies and financing their climate change, adaptation and mitigation ambitions.

The framework will be further developed with the aim being to reach a formal agreement in the first half of 2024.

Marisa Drew, Chief Sustainability Officer, Standard Chartered, said: “Our commitment to sustainable finance seeks to channel capital to where it is needed most in order to achieve net zero by 2050. Such work is underpinned by meaningful partnerships with clients and markets in transition. Through this framework, we seek to deliver real impact as part of Việt Nam’s progressive sustainability agenda.”

Michele Wee, CEO, Standard Chartered Vietnam, said: “We are proud to partner with GuarantCo to accelerate climate action in Việt Nam. We believe that the scale of the climate change challenge requires close collaborations between private sector and governments to ensure and achieve a just transition. Directing private capital or blended finance for climate mitigation and adaptation can help us achieve a just transition.”

Philippe Valahu, Chair of the GuarantCo Board and CEO of PIDG, said: “This framework [VJ1] is fully aligned with the recently launched climate action focused PIDG strategy 2030.  We are confident that the impact of this sustainability-focused deal framework will result in many initiatives that will make a significant impact towards positive climate action to the benefit of the people in Việt Nam.”

Layth Al-Falaki, CEO of GuarantCo, said: “We are delighted to have signed this Memorandum of Understanding with Standard Chartered Bank and to be able to mobilise guarantee capacity of up to the Vietnamese đồng equivalent of $150 million to further climate resilience, mitigation and adaptation efforts in line with PIDG and GuarantCo’s aims.” — VNS