Vietnam’s High-Emission Industries Gain Roadmap to Net Zero with New Transition Finance Guide

Vietnam’s High-Emission Industries Gain Roadmap to Net Zero with New Transition Finance Guide

Climate Bonds Initiative launches practical framework to support low-carbon transition in hard-to-abate sectors

Short Summary:

1. Practical tools for high-impact sectors: The guide offers a clear, science-based framework for transition planning in Vietnam’s steel, cement, and basic chemicals industries—responsible for over 70% of global industrial CO₂ emissions.
2. Response to growing regulatory and investor pressure: It supports Vietnamese corporates in addressing risks from mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM) and rising investor demand for credible decarbonisation strategies.

3. Actionable pathways for credible transitions: Aligned with the Paris Agreement and Climate Bonds methodologies, the guide sets out five hallmarks of effective transition planning, sector-specific decarbonisation levers, and tools for financing and monitoring progress.

    

Hanoi 12/06/2025 10:00am: The Climate Bonds Initiative has released a new practical guide to help Vietnam’s most emissions-intensive industries develop science-based, Paris-aligned transition plans. Focusing on steel, cement, and basic chemicals—sectors that account for the majority of the country’s industrial emissions—the report offers a structured approach to credible climate transition, aligned with investor expectations and emerging regulatory frameworks.

The report, Transition Finance for Hard-to-Abate Sectors in Vietnam, arrives at a critical time. Global regulatory shifts, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), pose significant risks to Vietnam’s export competitiveness. Investors, meanwhile, are increasingly demanding climate-aligned financial disclosures and credible sustainability strategies before deploying capital.

The guide responds to these pressures by providing corporates with a step-by-step methodology grounded in Climate Bonds' Five Hallmarks of a Credible Transition Plan. It emphasises emissions baselining, sectoral pathway selection, governance, financing strategies, and both internal and external monitoring. Case studies from international issuers such as JSW Steel and Holcim further illustrate how transition planning can translate into successful financing.

Zalina Shamsudin, Head of Technical Assistance and Capacity Building, Climate Bonds Initiative

“This guide offers Vietnamese companies a unique opportunity to take the lead on industrial decarbonisation. By adopting credible transition pathways, businesses can mitigate risk, attract sustainable investment, and maintain global competitiveness.”

Key features include:

• Sectoral roadmaps tailored for Vietnam’s steel, cement, and chemical sectors.
• Guidance on selecting performance metrics, setting science-based targets, and aligning with international disclosure standards.
• Financing instruments overview including sustainability-linked bonds and loans.
• Actionable checklists and governance recommendations.

The guide also serves as a resource for financial institutions to assess corporate alignment with net-zero goals. Following the publication of this guidebook, Climate Bonds Initiative will be working with corporates in different hard-to-abate sectors and support them in developing their transition plans. 

Download the full report here: www.climatebonds.net/data-insights/publications/transition-finance-hard-abate-sectors-vietnam-practical-guide

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Contact for Interviews and further information: 

Luiza Mello

Senior Communications Specialist

T: +55 11 950828126

E: luiza.mello@climatebonds.net

Notes to the editor: 

Vietnam's GSS+ market: There is significant potential for Vietnam to unlock sustainable investment by advancing credible transition efforts. Since 2016, the country has recorded over USD 2.4 billion in GSS+ issuances, supporting a range of projects from wind power to water treatment. In a landmark development last year, Gia Lai Electricity Joint Stock Company (GEC), a leading Vietnamese renewable energy firm, became the first corporate issuer in Vietnam to have its green bond framework certified under the Climate Bonds Standard — demonstrating the country’s growing capacity to align with global best practices in mobilising capital toward a low-carbon future.

About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.

Disclaimer: The information in this communication does not constitute investment advice in any form, and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation, debt instrument, or investment product is for informational purposes only. Links to external websites are provided solely for informational purposes, and the Climate Bonds Initiative assumes no responsibility for their content.

The Climate Bonds Initiative does not endorse, recommend, or provide advice on the financial merits or suitability of any debt instrument or investment product. No information within this communication should be construed as such, nor relied upon when making any investment decision.

Certification under the Climate Bond Standard solely reflects the climate-related attributes of the use of proceeds for the designated debt instrument. It does not assess the creditworthiness of the instrument, nor its compliance with national or international laws.

All investment decisions remain the sole responsibility of the individual or organisation. The Climate Bonds Initiative accepts no liability for any investments made by individuals or organisations, nor for any investments made by third parties on their behalf, based wholly or in part on information contained in this or any other Climate Bonds Initiative public communication.

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