European Investment Bank commits €500 million credit package in Just Energy Transition

The signing was attended by Deputy Prime Minister Tran Hong Ha

The signing was at the Global Gateway Forum held in Brussels on October 25 to support the implementation of the Just Energy Transition Partnership (JETP) in Vietnam.

This memorandum signifies a mutual commitment to put in place a multi-project credit facility worth €500 million, soon to be finalised. Once established, the facility will allow projects supporting decarbonisation and energy transition to be financed under a framework loan.

Teresa Czerwińska, vice president of EIB, explained, “The EIB's €500 million commitment goes beyond finance, driving a transition to sustainable energy and a resilient economy in Vietnam. Through initiatives like Global Gateway we, together with the European Commission, are turning global challenges into opportunities for sustainable development and innovation.”

Ursula von der Leyen, president of the European Commission said, “We are taking an important step to support Vietnam’s ambitious net-zero goal for 2050. The European Commission, the EIB and Vietnam are partnering to support the renewable energy transition and energy security. With this €500 million of funding, Global Gateway is making a difference for the people of Vietnam."

The agreement demonstrates EIB Global’s commitment to promoting investment in climate mitigation and resilience, part of the EU’s Global Gateway initiative. Accordingly, through Global Gateway, the EU is committed to helping Vietnam achieve a just energy transition and reach its national and international climate goals through an effective JETP.

The implementation of Global Gateway in Vietnam will also focus on the areas of green, circular economy and sustainability, as well as education and skills. This includes projects on forest value chains, skills development, and technical and vocational education and training, among others.

EIB Global is the EIB Group’s new specialised arm devoted to increasing the impact of international partnerships and development finance outside the European Union.

Energy transition will not come without challenges To avoid catastrophic climate change and establish a trajectory that is compatible with the Paris Agreement, transformative changes to energy systems are urgently needed.

Fair energy transition awaits financing With public financing insufficient, Vietnam requires more affordable capital than commercial loans for a fair energy transition.

Just energy transition plan approaches next stage Vietnam’s plan to hit its energy transition targets is taking shape, and aims to make it favourable for the country to mobilise international finance.