A Climate Bank for Viet Nam to Catalyze Green and Just Transitions

A new public climate bank with a focused policy mandate on climate action supported by international development finance institutions could help Viet Nam achieve a just transition to a low-carbon and climateresilient economy. Given the enormous and front-loaded capital needs of economic transformation, its long maturities, and the specialist technical knowledge and skills required, there is an evolving argument in the development community for creating new, specialist institutions focused directly on this task or for strengthening existing ones. This paper contributes to that debate by exploring the potential for a new climate bank in Viet Nam that works alongside existing financial institutions. It concludes that the government of Viet Nam may wish to explore the interest of international development finance institutions to support the establishment of a Climate Bank for Viet Nam by providing capital or guarantees to help it become a catalyst to mobilise public and private capital at cheap rates and become a driving force for financing a clean and just transition in Viet Nam. The legacy of the new climate bank will rest on it becoming a public policy-maximising institution.