Nation to issue specific criteria for green and circular projects

Businesses are expected to have a closer opportunity to obtain green capital sources thanks to new regulations on clarifying criteria for determining green and circular projects.

- By Nguyen Kim

The draft prime ministerial decision providing guidance on the identification of green projects, projects meeting circular criteria, and the application of environmental, social, and governance (ESG) standards framework is expected to be approved by the government in June.

Once approved, the draft, which is now seeking public feedback, will be the first time for Vietnam to have an ESG standard framework to consider allocating capital or supporting interest for green/circular projects.

According to the Ministry of Agriculture and Environment, the draft combines the criteria for green projects that are developed based on the Law on Environmental Protection and current regulations, ensuring consistency and alignment with international practice.

The list of green projects covers 45 project types across seven key sectors: energy; transport; construction; water resources; agriculture, forestry, fisheries, biodiversity conservation; processing and manufacturing industries; and environmental services. Objectives and requirements are clearly specified for each project type.

Regarding criteria for circular projects, the draft stipulates that they must fall under one of three categories: circular design, circular use, or resource recovery.

A notable new element in the draft is the provision on the application of an ESG standards framework, comprising 52 criteria.