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Energy
Support Vietnam more than 86 million USD in energy conservation investment
The World Bank (WB) on behalf of the Green Climate Fund (GCF) has signed a $ 11.3 million grant agreement with the State Bank of Vietnam to support the development of the commercial financial market for investing in energy conservation in industry.


GCF financial assistance also includes a guarantee worth $ 75 million.

The aforementioned grant will spend $ 8.3 million to build private sector capacity in identifying, evaluating and implementing energy efficiency projects.

This component will also provide technical assistance to the Ministry of Industry and Trade and relevant agencies to improve policies and regulations and create a conducive environment to promote the development of the energy conservation market in Vietnam.

The remainder of the grant and the guarantee will be used to establish a risk-sharing fund to provide partial credit guarantees, to assist domestic commercial banks in managing risks when lending projects on conservation energy.

Through loan risk reduction support, the fund is expected to raise about $ 250 million from commercial finance allowing industrial businesses and energy services companies to borrow on competitive terms and lower assest requirements.

Mrs. Carolyn Turk - World Director of the World Bank in Vietnam - said promoting energy conservation is a good solution with the lowest cost to achieve many goals at the same time: pollution and reducing greenhouse gas emissions while enhancing the competitiveness of businesses.

The grant aid and the aforementioned guarantee are used to support the implementation of projects on promoting energy efficiency in industries in Vietnam to assist Vietnam in achieving its energy conservation goals set out in the Green Growth Strategy as well as the emissions reduction targets committed in the Nationally Determined Contribution (NDC). As a country with the highest energy and emission intensity in the region, Vietnam is actively transitioning to green energy and developing low carbon emissions.

The World Bank's study on low carbon emissions estimates that Vietnam will avoid new investment of 11 GW in generating capacity by 2030 if it could fully implement demand-side energy-conservation solutions. Total investment needs for energy conservation and efficiency of some key industries of Vietnam is estimated at about 3.6 billion USD.

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