Approximately 6.8 per cent of Vietnam's GDP lost annually to climate change

August 04, 2023 | 09:30

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To effectively respond to climate change by 2040, Vietnam will need approximately $400 billion. However, the state budget is only anticipated to provide approximately $130 billion.

Approximately 6.8 per cent of Vietnam's GDP lost annually to climate change

According to a report on the Assessment of the Implementation of Resolution No.24-NQ/TW by the Department of Climate Change under the Ministry of Natural Resources and Environment that was released at the end of July, the financial requirements to implement climate change response targets in Vietnam are enormous.

At the Extended G7 Summit in May, where the United Nations' Sustainable Development Goals were discussed, Vietnamese Prime Minister Pham Minh Chinh implored developed nations to assist in responding to climate change and sea level rises in the Mekong Delta.

The prime minister believes that the efficient mobilisation and application of resources is a crucial element of sustainable development.

PM Chinh proposed an innovative strategy for mobilising a range of financial sources, with an emphasis on public-private partnerships, blended financing involving private sector participation, and foreign investment.

According to the Vietnam Country Climate and Development Report, released by the World Bank (WB) in July 2022, Vietnam lost approximately $10 billion, or 3.2 per cent of its GDP, in 2020 due to climate impacts.

The nation has quadrupled its per-person greenhouse gas (GHG) emissions this century. By 2050, the total economic cost of climate change in Vietnam is projected to reach $523 billion.

The country is implementing a green transition and reducing GHG emissions as it approaches the status of a high-income nation whose carbon intensity must be reduced. The WB report advises Vietnam to prioritise investments to mitigate the effects of climate change.

Vietnam’s climate change strategy must be sped up

The Vietnamese government is urging ministries to expedite the formulation of actions to materialise the national climate change strategy enacted last year, with a highlight on measures to reduce greenhouse gas emissions.

Enhanced awareness and efforts from businesses to reach climate goals

Drawing on the private sector’s know-how, influence, and scale to bridge the gap to a more equitable and sustainable future, the global economy can continue to grow while reaching the climate goals and reducing greenhouse gas emissions.

Insurance operations threatened by climate risks

The insurance sector can be a game-changer by managing risks from climate change in Asia-Pacific, protecting ecosystems, and supporting the shift towards a sustainable future.

By Angela Nguyen

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