British embassy launches Climate Finance Accelerator in Vietnam

British Embassy Hanoi launches Climate Finance Accelerator in Vietnam

The Climate Finance Accelerator (CFA) is a technical assistance programme funded by the UK government that responds directly to the urgency and scale of the climate crisis. Projects working in Vietnam are invited to respond to the call for proposals until 15 January 2023.

The CFA approach recognises that while there is money available for climate finance, it is often difficult for it to flow to the places where it is needed the most. By bringing together project developers and financial experts who can develop and finance climate projects at scale, the CFA will support Vietnam’s efforts to implement its Nationally Determined Contribution under the Paris Agreement, deliver emissions reductions, and raise its overall climate ambition.

This initiative builds on the UK’s climate leadership, as host of COP26 in Glasgow and leading discussions with the government of Vietnam on the recently announced Vietnam Just Energy Transition Partnership, designed to mobilise finance and technical assistance to support Vietnam’s clean energy transition.

“I am delighted that the innovative Climate Finance Accelerator is now operational in Vietnam to support the realisation of projects that directly deliver on the country’s net zero ambitions. The CFA has already seen great success in eight countries around the world and it is fantastic news that low carbon projects in Vietnam will be able to benefit from technical support to help them to secure investment," said Iain Frew, British Ambassador to Vietnam. “This is a testament to the UK’s commitment to supporting Vietnam’s green transition as part of the Just Energy Transition Partnership.”

CFA Vietnam is initially looking for 8-10 projects at the pre-feasibility stage that is seeking investment of at least $5 million. Projects wishing to be part of CFA Vietnam should complete the online application.

The projects will be selected from the following sectors to help achieve Vietnam’s climate commitments: renewable energy; energy/ resource efficiency; e-mobility; water supply; wastewater treatment; waste management; waste to energy; low carbon manufacturing, green agriculture; and decarbonisation of construction.

The projects will be supported by technical, financial and gender equality and social inclusion experts to help them understand and overcome barriers to investment. The CFA will also work with policymakers in the Government of Vietnam to share insights to support the development of the enabling environment for climate finance.

“Vietnamese businesses are increasingly showing proactive action on the environment and society. The CFA programme provides a great opportunity for climate innovators in Vietnam to access the technical, financial and gender equality and social inclusion experts’ support from the UK," Dinh Thi Quynh Van, CEO, PwC Vietnam said. "PwC Vietnam is honoured to be selected as the country delivery partner of the CFA to connect businesses, financial institutions and public bodies in the efforts to support climate action in Vietnam, facilitating access to finance and helping the government of Vietnam achieve its climate targets and net zero ambitions.”

The CFA programme is also operational in Colombia, Egypt, Nigeria, Mexico, Pakistan, Peru, South Africa, and Turkey, and is being delivered by PwC and Ricardo Energy & Environment. It is funded by the UK government’s Department of Business, Energy and Industrial Strategy and is implemented in Vietnam by PwC Vietnam.

New finance instruments in play for climate future Given the current status, a novel public development bank or energy-focused financial vehicle could support Vietnam to realise its goal of transitioning to a low-carbon, climate-resilient economy in an equitable manner.

How Vietnam can utilise wide-ranging climate finance The government’s landmark announcement in 2021 that Vietnam will achieve net-zero carbon emissions by 2050 and phase out coal power by the 2040s was both bold and visionary. It marks a significant milestone in the country’s development trajectory.

UK prioritises ties with Vietnam in renewable energy The British Embassy in Vietnam in collaboration with the Vietnam Electricity and the National Power Transmission Corporation (EVNNPT) held an online technical seminar on modeling using digital technology related to the development and management of renewable energy.