The Role of Green Finance in Sustainable Development and Climate Change Adaptation in Danang City

Abstract

This paper analyzes the role of green finance in promoting sustainable development and climate change adaptation in Danang, particularly in the context of the city’s strategic orientation toward becoming an International Financial Center based on two pillars: digital finance and green finance. Drawing on theoretical foundations, local practices, and international experiences, the study highlights that while Danang has made initial efforts—such as partnering with BIDV and developing Eco-industrial parks in collaboration with GIZ and UNIDO—it still lacks a dedicated legal framework, domestic green financial instruments, and sufficient implementation capacity. Accordingly, the paper proposes four key solution groups: improving the institutional framework and establishing criteria for identifying green projects; piloting green financial instruments such as green bonds and sustainable investment funds; enhancing the capacity of local officials through training and international cooperation; and integrating green finance into the restructuring of delayed or stagnant urban development projects, particularly in the Son Tra Peninsula and former Quang Nam areas.