Rich nations target $15B to help Vietnam ‘green transition’

Rich nations on Wednesday pledged to raise at least $15.5 billion to help get Vietnam off fossil fuels and reach carbon net zero by 2050, a joint statement said.

Partners, including the European Union, Britain, the United States, Canada and Japan, struck the agreement with Vietnam to “accelerate the peaking of its greenhouse gas emissions and transition away from fossil fuels to clean energy”.

The initiative is the third of its kind aimed at getting richer countries to assist developing nations to go green after deals with Indonesia and South Africa.

“Vietnam is a dynamic, emerging economy at the heart of South East Asia. The investment we are making today means the country can cut its emissions while simultaneously creating new jobs and growth,” British Prime Minister Rishi Sunak said in the statement.

“Together we will deliver a cleaner, greener future for Vietnam and our planet.”

The partnership aims to “mobilise an initial $15.5 billion of public and private finance over the next three to five years”.

It looks to bring forward Vietnam’s peak green house emissions to 2030, cut coal capacity, and accelerate its adoption of renewable energy so it accounts for at least 47 percent of power generation by the end of the decade.

“The successful delivery of these ambitious targets will result in around 500 megatons (0.5 billion tonnes) of emissions saved by 2035,” the statement said.

Vietnam relies on cheap and abundant coal supplies for its energy as it seeks to power its fast-growing economy.