Net Zero: Supporting green businesses

Climate change is a global issue, threatening the environment and human life. To address climate change, countries worldwide have committed to achieving Net Zero goals, meaning no net greenhouse gas emissions by 2050.

In this context, businesses also need to collectively take responsibility to minimize greenhouse gas emissions. Transitioning to an environmentally friendly, green business model is an inevitable trend for future enterprises.

However, transitioning to a green business model is not an easy task. Businesses need to invest resources, time, and effort to research and implement green solutions.

To support businesses in transitioning to a green business model, governments and international organizations have introduced many encouraging policies and programs.

Government Support Policies for Green Businesses

To encourage businesses to transition to a green business model, the Vietnamese Government has issued various support policies, including:

1. Tax and Fee Exemptions and Reductions

Consultation conference with ministries, agencies, international organizations, and development partners on building the National Green Growth Strategy for the 2021-2030 period, vision to 2045, aiming for 2050 (photo: baodautu.vn)

The government exempts or reduces taxes and fees for enterprises investing in renewable energy, energy conservation, and environmental protection. Specifically, businesses enjoy exemptions or reductions in the following areas:

• Import tax exemption for equipment, machinery, materials imported for investment in renewable energy, energy conservation, and environmental protection projects.
• Exemption or reduction of Corporate Income Tax (CIT) on income from activities in the fields of renewable energy, energy conservation, and environmental protection.
• Exemption or reduction of land rent, water surface rent for renewable energy, energy conservation, and environmental protection projects.

2. Policies to Support Access to Preferential Loans

The government supports businesses in accessing preferential loans from commercial banks, social policy banks to invest in green projects. Specifically, businesses can borrow with preferential interest rates ranging from 0% to 7% per year.

3. Policies to Support Businesses in Enhancing Environmental Management Capabilities

The government supports businesses in enhancing environmental management capabilities through training, workshops, consulting, and financial support. Specifically, businesses receive support such as:

• Training and workshops on environmental management for the company's officers and employees.
• Consultation on effective environmental management solutions.
• Financial support for investment projects to enhance environmental management capabilities.

International organizations such as the World Bank, the Asian Development Bank, and the United States Agency for International Development (USAID) also provide programs to support green businesses.

Benefits of Government Support Policies for Green Businesses

The government's support policies for green businesses bring various benefits, including:

• Reducing costs and risks in the green transition process.
• Enhancing the competitive capacity of businesses.
• Contributing positively to environmental protection.

To maximize the effectiveness of these support policies, businesses should consider the following:

• Thoroughly understand the government's support policies to seize opportunities and maximize benefits.
• Contact relevant authorities for advice and assistance in accessing support policies.
• Prepare complete documentation and procedures to facilitate the processing of support requests.

Typical Green Business Support Programs Include:

• Strategic consulting to transition to a green business model: Naan will help businesses set green conversion goals, analyze the current situation, and develop a suitable green conversion plan based on the needs and capabilities of the business.
• Technical consulting: Naan will advise businesses on specific green solutions, such as using renewable energy, energy conservation, using recycled materials, environmentally friendly practices, waste reduction, and efficient waste management.
• Support in accessing capital: Naan will help businesses access preferential loans from the government, international organizations, commercial banks, etc., to invest in green projects.
• Enhancing environmental management capabilities: Naan will assist businesses in improving environmental management capabilities, ensuring compliance with environmental protection regulations.

Benefits of using Naan's green business consulting and support services:

• Reducing costs and risks in the green transition process.
• Enhancing the competitive capacity of businesses.
• Contributing positively to environmental protection.

If your business has a need to transition to a green business model, contact Naan for advice and support.