Unlocking access to international capital is seen as essential if Vietnam is going to realise its ambitious net-zero targets.
Encouragingly as we look back on financing developments in December 2022 there are clear signs of an international commitment to Vietnam’s energy transition.
JETP commits USD 15.5 billion to Vietnam’s energy transition
The Just Energy Transition Partnership (JETP) has committed USD 15.5 billion under a financing package for Vietnam to be mobilized over the next 3 to 5 years. Funding will be applied to support Vietnam’s low-emission and climate-resilient development, accelerate the just transition and de-carbonization of the electricity system, and develop new economic opportunities to support the country’s transition towards a net zero future. Source
IFC green finance accelerator for a low-carbon economy in Vietnam
The International Finance Corporation (IFC), the Swiss State Secretariat for Economic Affairs (SECO) and the State Securities Commission of Vietnam (SSC) have agreed to an MOU for accelerating green finance for a low-carbon economy in Vietnam. IFC will offer assistance to the Vietnamese government to leverage capital markets to tackle climate change through green and sustainable finance. Source
Australia allocates USD 50 million for VinFast’s charging point development in Vietnam
The Export Finance Australia (EFA) and the Australian Climate Finance Partnership (ACFPC) plan to provide VinFast with funding of up to USD 50 million to develop electric buses and the first charging point system in Vietnam. Source
Accelerating Climate Transitions through Green Finance in Southeast Asia program
The Accelerating Climate Transitions through Green Finance in Southeast Asia program has been launched in order to help countries in Southeast Asia to mobilize financing for nationally determined contributions by improving investment planning, identifying and developing projects, and building country capacity to accelerate a pipeline of green projects for the region. This program is funded by the Asian Development Bank (ADB) and Green Climate Fund (GCF) with a total investment cost of USD 15 million. Source
IDBG funds USD 13 billion to support climate change adaptation
The Islamic Development Bank Group (IDBG) has announced plans to facilitate USD 13 billion in order to support member states with climate change adaptation between 2023 and 2030. IDBG has committed to assisting member states to improve resilience in food systems, clean transport, urban systems, and energy security. Source
Deal to support developing countries at COP27
At COP27, delegates from nearly 200 countries jointly established a fund to assist developing countries to cope with climate disasters exacerbated by the greenhouse gases from wealthy nations. Source
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