Incentive Financial Policies to Promote Investment in Green and Green Transition Projects

Abstract

In the context of global climate change and the transition toward a low-carbon economy, green investment has emerged as a pillar of sustainable development strategies. This paper examines the role and effectiveness of financial incentive policies in promoting investment in green projects by analyzing international experiences (EU, China, South Korea, the United States) and evaluating Vietnam’s current policy landscape. The findings reveal that financial instruments—such as tax incentives, green credit, credit guarantees, and green investment funds—can effectively mobilize private capital if designed in a transparent, consistent, and context-appropriate manner. The paper proposes a multi-tiered system of financial incentives tailored to Vietnam’s conditions and suggests future research directions to assess the impact of such policies on corporate investment behavior and green transition outcomes.