EU and France provide $78.5 million for Quang Nam and Quang Tri to tackle climate change

Financing agreements for two climate change adaptation projects in the central provinces of Quang Nam and Quang Tri were signed by Vietnam's Ministry of Finance and the French Agency for Development (AFD) on March 15, with a total value of €72.3 million ($78.5 million).

Both projects will receive technical assistance from the EU–funded Water and Natural Resources Management Facility (WARM Facility), aiming to reinforce the capacity of local authorities in project management, implementation of adaptation measures, and the local population’s resilience to climate change.

Vietnam is considered one of the countries most vulnerable to the effects of climate change. Rising temperatures and sea levels, increased frequency and intensity of extreme weather events, combined with population growth and urbanisation, are increasing the risk of hazards, such as coastal erosion and flooding across the country.

Among the affected provinces, Quang Nam, over the last decade, has witnessed serious coastal erosion with increasing intensity, which causes heavy damage to people’s property and the tourism industry. In the province of Quang Tri, Dong Ha city experiences frequent effects of climate change, including flooding, land subsidence, saline intrusion and drought. This heavily impacts the safety and lives of people, while the city's current infrastructure is deteriorating.

Speaking at the event, Vo Thanh Hung, Deputy Minister of finance, expressed gratitude to the EU and AFD for supporting Vietnam to implement its climate commitments and strengthen its resilience to the impacts of climate change. He emphasised Vietnam’s expectation to enhance this partnership to reach the goals set in the country’s socioeconomic development policy, particularly supporting provinces and cities in implementing initiatives that will lessen the effects of climate change, strengthen resilience, and promote green growth.

Peteris Ustubs, director for Middle East, Asia and Pacific of the European Commission’s International Partnerships Directorate, said, “Investing in projects like those supported by the WARM Facility not only strengthens local communities' resilience but also contributes to efforts in addressing global climate change effects. These initiatives are in line with the EU's Global Gateway strategy to narrow the global investment gap, and are a testament to the EU’s commitment to be a faithful partner of Vietnam in climate action and sustainable development.”

Olivier Brochet, French Ambassador to Vietnam, also shared, “France, through AFD, has the ambition to support Vietnam in its climate priorities through a range of climate projects at provincial level. Among them are the Quang Nam project to cope with coastal erosion related issues, and the Quang Tri project to improve infrastructure adapted to flooding risks, with the aim of lifting economic growth and improving living conditions. These two projects are supported by the WARM Facility to implement technical assistance that helps strengthen their capacity towards an integrated coastal zone and urban resilience management.”

The WARM Facility, a grant of €20 million ($21.7 million) provided by the EU and leverage for an AFD loan of €300 million ($325.6 million), supports the preparation and implementation of strategic investment projects in the areas of water and natural resources management in response to key local challenges of climate change. The WARM Facility contributes to the implementation of the EU's GlobalGateway strategy.

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

Greener principles will light a path for climate victory We are facing a triple planetary crisis with three interconnected challenges: climate change, pollution, and biodiversity loss. Climate change is happening even faster than scientists anticipated, and the past two months were the hottest ever recorded.

Central bank at the helm of shaping sustainable ambition With the requirement that socioeconomic development must go hand-in-hand with environmental protection and sustainable development, Vietnam is actively participating in international commitments on reducing greenhouse gas emissions and minimising the impact of climate change.