Urbanization and economic growth have fueled a rapid rise in Vietnam’s energy consumption. To curb greenhouse gas emissions and reliance on fossil fuels, Vietnam is working to build viable renewable energy and energy efficiency markets to empower green growth.
To address the country’s growing energy needs while mitigating the effects of climate change, the government of Vietnam has developed a CTF investment plan for $250 million. CTF concessional financing is helping to demonstrate commercial viability of energy efficiency and renewable energy investments to create an enabling environment for scaled-up private sector investment and reduce greenhouse emissions.
This includes supporting energy efficiency investments in industrial and energy service companies, initial capitalization for energy conservation and renewable energy funds, investment in a private sector renewable energy risk-sharing facility, and enhancements to urban transport systems in Hanoi and Ho Chi Minh City.
Around 1.8 million tons of CO2 equivalent emissions are expected to be avoided per year due to proposed CTF investments
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Distribution Efficiency Project||FUNDClean Technology Fund||COFINANCING (USD MILLION) 30||FUNDING (USD MILLION) 770||MDBIBRD|
|Ha Noi Sustainable Urban Transport Program - Project 1: Ha Noi Metro System Line 3||FUNDClean Technology Fund||COFINANCING (USD MILLION) 50||FUNDING (USD MILLION) 335||MDBADB|
|Ha Noi Sustainable Urban Transport Program - Project 2: Strengthening Sustainable Urban Transport for Hanoi Metro Line 3||FUNDClean Technology Fund||COFINANCING (USD MILLION) 48.95||FUNDING (USD MILLION) 10||MDBADB|
|M&E TA: Mainstreaming Climate Change Mitigation into National Infrastructure||FUNDClean Technology Fund||COFINANCING (USD MILLION) 0.95||FUNDING (USD MILLION) 0||MDBADB|
|Sustainable Energy Finance Program (VSEF)||FUNDClean Technology Fund||COFINANCING (USD MILLION) 3||FUNDING (USD MILLION) 1||MDBIFC|
|Sustainable Urban Transport for Ho Chi Minh City Mass Rapid Transit Line 2 Project||FUNDClean Technology Fund||COFINANCING (USD MILLION) 48.95||FUNDING (USD MILLION) 16||MDBADB|
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.