Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Vietnam nears $11bn deal to shift economy from coal

© Shutterstock / Claudine Van MassenhovePost Thumbnail

Vietnam is set to follow Indonesia and South Africa with a climate financing package of at least $11 billion to shift its economy away from coal and boost the rollout of renewable energy sources.

Vietnam and its donor countries, led by the European Union and the UK, are aiming to announce the Just Energy Transition Partnership funding deal — which could total as much as $14 billion — at the EU-ASEAN summit on Dec. 14, according to people familiar to the matter. Between $5 billion and $7 billion will come from public loans and grants, with the rest from private sources.

About 85% of the package has been done, but the issue of decarbonising the country’s power sector still needs to be finalised, one of the people said. Vietnam was understood to have been analysing Indonesia’s deal, announced earlier this week, and key members of the country’s leadership still need to be won over, the person said.

Negotiations have also been clouded by concerns about how much of the funding would be grant-based and how much debt Vietnam is willing to take on, even at highly concessional rates. It’s also not clear that a deal can be reached without the release of environmental activists currently jailed in the Southeast Asian nation on what supporters call trumped-up charges.

Vietnam’s package is set to be the third in a series of blockbuster deals to help large coal-reliant middle-income countries accelerate their transition to low-carbon economies. South Africa’s $8.5 billion agreement was the first, announced at last year’s COP climate summit, with an investment plan signed off at this year’s meeting in Egypt. Indonesia’s $20 billion pact was unveiled at the Group of 20 gathering in Bali this week.

Two similar energy transition packages are in the pipeline for Senegal and India, which is hosting the G-20 next year.

Coal makes up about half of Vietnam’s energy supply, yet its 2,000 miles of coastline are seen as ideal for generating wind power. The partnership will also involve technical assistance on how to streamline renewable regulations as the country aims to reach carbon neutrality by the middle of the century.

Like the Indonesia deal, some of private finance is expected be provided by the Glasgow Financial Alliance for Net Zero, a group of 550 financial institutions with $150 trillion in assets.

More from SG Voice

Latest Posts