Vietnam has Green Classification Criteria for Investment Projects

Deputy Prime Minister Tran Hong Ha Signs Decision on Green Classification Criteria for Investment Projects

Deputy Prime Minister Tran Hong Ha recently signed Decision No. 21/2025/QD-TTg, which stipulates environmental criteria and the confirmation of investment projects belonging to the green classification list. This marks a significant step forward for Vietnam in its sustainable development process.

ENVIRONMENTAL CRITERIA FOR INVESTMENT PROJECTS UNDER THE GREEN CLASSIFICATION LIST

According to this regulation, an investment project confirmed as belonging to the green classification list must meet two criteria:

First, it must have an approved environmental impact assessment report or an environmental license or environmental registration in accordance with environmental protection laws, excluding investment projects exempted from environmental procedures by law.

Second, the project must belong to the field of environmental protection or provide environmental benefits and meet the requirements specified in Appendix I of Decision No. 21/2025/QD-TTg.

The Decision clearly states that the competent agencies and organizations authorized to confirm investment projects belonging to the green classification list include: State agencies competent to appraise and approve environmental impact assessment reports or issue environmental licenses for investment projects as stipulated by environmental protection laws.

Independent verification organizations must fully meet the following requirements: have legal personality as prescribed by law; be registered for business in Vietnam or established by a decision of a competent state agency; and fall into one of the following categories: Providing conformity assessment services or having conformity assessment functions as prescribed by law; or providing auditing services.

Independent verification organizations must have a management system and operational capacity that meet one of the following requirements: National Standard TCVN ISO/IEC 17029:2020 or International Standard ISO/IEC 17029:2019 on conformity assessment – General principles and requirements for validation and verification bodies;

Concurrently, they must adhere to Vietnamese Standard on Assurance Engagements No. 3000 – Assurance Engagements other than Audits or Reviews of Historical Financial Information, or International Standard on Assurance Engagements (ISAE 3000) or amended, supplemented, or replacement standards issued by competent Vietnamese authorities in accordance with the law.

CONFIRMATION OF INVESTMENT PROJECTS UNDER THE GREEN CLASSIFICATION LIST

The Decision specifies that the confirmation of investment projects belonging to the green classification list is carried out at the request of the project owner or green bond issuer.

Regarding confirmation by competent state agencies: The project owner proposes to the competent state agency to confirm the investment project as belonging to the green classification list simultaneously with the administrative procedures for appraising and approving the environmental impact assessment report or issuing the environmental license;

The state agency competent to appraise environmental impact assessment reports or issue environmental licenses will organize the evaluation and confirmation of investment projects belonging to the green classification list during the appraisal process of the environmental impact assessment report or when considering the issuance of an environmental license. The confirmation results will be reflected in the decision approving the environmental impact assessment report or the environmental license.

Regarding confirmation by independent verification organizations: The investment project owner or green bond issuer submits an application to the independent verification organization for confirmation of the investment project as belonging to the green classification list;

The independent verification organization will inspect and review the dossier to confirm the investment project as belonging to the green classification list, ensuring independence and objectivity according to the standards or criteria of the independent verification organization specified above. The confirmation period and cost will be agreed upon between the independent verification organization and the project owner, and in accordance with relevant legal provisions;

The independent verification organization is responsible before the law, agencies, and organizations implementing State preferential policies and support for green credit, green bonds, and other relevant agencies, organizations, and individuals for its confirmation results.

According to this Decree, the inspection, supervision, and handling of violations regarding the confirmation of investment projects belonging to the green classification list will be carried out in accordance with environmental protection laws and other relevant laws.

The Decision states that if a competent state agency confirms an investment project as belonging to the green classification list, the content of the request for confirmation of the investment project as belonging to the green classification list must be included in the dossier requesting appraisal of the environmental impact assessment report or the dossier requesting an environmental license.

Specifically, this includes: the content of the request for confirmation of the investment project as belonging to the green classification list expressed in the application for appraisal of the environmental impact assessment report or for an environmental license; the explanation of how the investment project meets the environmental criteria, including the contents specified in Appendix III issued with Decision No. 21/2025/QD-TTg, presented as a separate chapter in the environmental impact assessment report or the dossier requesting an environmental license.

If an independent verification organization confirms an investment project as belonging to the green classification list, the dossier for requesting confirmation of the investment project as belonging to the green classification list includes: A written request for confirmation of the investment project as belonging to the green classification list according to the prescribed form; The decision approving the environmental impact assessment report in cases where the investment project is subject to environmental impact assessment, or an environmental license in cases where the investment project is not subject to environmental impact assessment but requires an environmental license, or environmental registration in cases where the investment project requires environmental registration according to environmental protection laws;

Additionally, it must include a report explaining how the investment project belongs to the green classification list at the time of requesting green credit, issuing green bonds, or requesting to receive State preferential policies and support for green credit and green bonds, according to the form specified in the Appendix issued with Decision No. 21/2025/QD-TTg.

According to experts, the national green classification list is the “key foundation” for building a sustainable green financial market.

Sharing with VnEconomy, an expert in this field stated that having environmental criteria regulations and the confirmation of investment projects belonging to the green classification list serves as a technical tool, actively supporting businesses, especially banking organizations, in identifying green projects and building trust for the future development of the green financial market.

In previous forums discussing this issue, experts commented that, from a legal perspective, Vietnam already has many regulations and requirements for green and sustainable growth. However, businesses and many related parties are looking forward to fundamental legal regulations related to green classification, green finance, etc. The absence of a national green classification list has made it difficult for credit institutions to have a solid basis for identifying green projects.