ADB Provides Climate Financing Package for Electric Mobility in Viet Nam

The climate financing package will help develop Viet Nam's first fully-electric public transport bus fleet and first national electric vehicle (EV) charging network - Illustration photo
The climate financing package will help develop Viet Nam’s first fully-electric public transport bus fleet and first national electric vehicle (EV) charging network – Illustration photo

The package targets to support Viet Nam’s bid to reach net-zero greenhouse gas emissions by 2050 and facilitate the high-tech automobile manufacturing industry here.

The climate financing comprises 7-year tenor financings, including a US$20 million loan funded by ADB, parallel loans of US$87 million facilitated by ADB as mandated lead arranger, and concessional financing of up to US$28 million, reported the VGP.

The climate financing is certified by the Climate Bonds Initiative, a scientifically-based standard for labelling bonds, loans and other debt instruments which contribute to addressing climate change.

o far, ADB has partially offset the project’s risks by utilizing concessional financing through its managed trust funds comprising loans from the Australian Climate Finance Partnership funded by the Australian Government (ACFP), the Clean Technology Fund (CTF) and a grant from the Climate Innovation and Development Fund, which is funded by Goldman Sachs and Bloomberg Philanthropies.

Parallel loans were also mobilized by ADB from Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and responsAbility.

“This project delivers a high-impact, sustainable transport solution for Vietnam while helping it meet its climate goals and supporting the growth of climate finance in the region,” said ADB Private Sector Operations Department Director General Suzanne Gaboury.

“Asia and the Pacific are the frontlines of the global fight against climate change, and private sector projects like this one with innovative partners such as VinFast are crucial to help its countries decarbonize their economies.”

ADB Provides Climate Financing Package for Electric Mobility in Viet Nam
Vinfast Factory. Photo: Vinfast

Viet Nam’s transport sector accounts for 18% of the country’s annual greenhouse gas emissions, and its decarbonization, through options like e-mobility, will directly impact the country’s ambition to achieve net zero emissions by 2050.

Additionally, the project includes a technical assistance (TA) of $950,000 from the ACFP and the CTF, focused on raising consumer awareness about e-mobility’s economic, environmental, and social impacts to help advance its market penetration. The TA will also help promote the role of women studying for or working in fields related to science, technology, and mathematics.

“We are delighted to receive this extensive support and a long-term financing package from ADB and several esteemed international development finance Institutions. We see this as a vote of confidence in our efforts to become a global smart mobility company that offers environmentally friendly public transportation, and to advance Viet Nam’s transition to a low carbon economy,” said VinFast’s Global CEO Thuy Le

Established in 2017, VinFast is Viet Nam’s first domestic car company and e-vehicle manufacturer. VinFast is a subsidiary of Vingroup Joint Stock Company, Viet Nam’s largest private enterprise and the largest listed company in Viet Nam. VinFast develops e-cars for the domestic and international markets and is investing in a nationwide network of fast-charging units to support its e-vehicle expansion in Viet Nam, according to the ADB.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Tarah Nguyen

The post ADB Provides Climate Financing Package for Electric Mobility in Viet Nam appeared first on Vietexplorer.com.

View more from VietExplorer:

Book festival “Hanoi – City for Peace” opens
Vietnam Ethnic Groups’ Unity–Vietnam Cultural Heritage Week to open
Vietnam Writers’ Association honours outstanding members
Vietnamese and foreign love films to be screened in Hanoi
Deputy PM Vu Duc Dam urges development of cultural industry
Russian Film Week opens in Hanoi
Winners of southeast region photo contest announced
Ba Ria – Vung Tau to host 2019 Vietnam Film Festival
World famous bubble legend returns to Vietnam
Connecting art dreams
Famous Vietnamese painter’s work auctioned for US$35,000
Cultural week brings a glimpse of Hungarian culture to Can Tho
Exhibition introduces paintings of the Zodiacal Rat
Czech-Vietnamese encyclopaedia wins Dictionary of the Year award
Weaving village in the city
Nguyen Tran Khanh Van crowned Miss Universe Vietnam 2019
The Colours of Love
Performance of Israel & Vietnam Folk Harmony to be held in Hanoi
Vietnam Fashion Week Spring/Summer 2020 on show
Winners of 2019 Youth Photography Festival honoured

Nhận xét

Đăng nhận xét

Bài đăng phổ biến từ blog này

10,000 promotional tours for VITM Hanoi 2023

Hình ảnh
Vietnam International Travel Mart Hanoi 2023 (VITM Hanoi 2023) will offer 10,000 promotional tours and gifts to attract domestic and foreign visitors.  The VITM Hanoi 2023 is expected to welcome more than 60,000 visitors. Photo: VNA It is estimated that more than 60,000 visitors will attend the four-day event. As of late March, 600 exhibitors from 60 Vietnamese cities, provinces, and 15 countries and territories had registered to set up 450 booths at VITM. Vu The Binh, chairman of the Vietnam Tourism Association, said at the fair’s press conference on March 28 that the event, themed “Cultural Tourism,” aims to encourage travel companies to develop new products linked to cultural values and heritage, thereby contributing to the development of the cultural industry and bringing Vietnamese culture to the world. He said the fair would also increase travel links between domestic and foreign tourism enterprises through a series of activities, including a forum on “Devel...
Đọc thêm

Ho Chi Minh City to Host Inaugural River Festival

City dwellers and tourists will have the opportunity to participate in the festival at various locations, including the Saigon Cruise Port, the Bach Dang Wharf Park, the Nhieu Loc-Thi Nghe Canal area, the Binh Dong Wharf, and the Suoi Tien Cultural Tourist Area. During a press conference on the festival held on July 12 in Ho Chi Minh City, Nguyen Thi Anh Hoa, Director of the City Department of Tourism, announced that a wide range of activities will be held along the Saigon River to attract tourists through art performances and promotional programs. These efforts aim to stimulate consumer demand during the peak summer season. The festival will feature an art program at the Saigon Cruise Port on the evening of August 6 with the participation of 700 artists, serving as the highlight of the event. In addition, travel companies will showcase their products and services to domestic and international tourists through tourism fairs at the Nhieu Loc-Thi Nghe Canal area and the Binh Dong...
Đọc thêm

Moc Chau Travel Tips for October

Hình ảnh
Noteworthy tourist destinations The heart-shaped tea hill has just opened to welcome guests in Moc Chau. This tourist destination is not only green but also has a relatively beautiful viewing position with beautiful scenery. The tea hill is located at the foot of the slope of sub-zone 68, quite close to the road leading to the grassland 68 Moc Chau. When the rain stopped, the waterfalls began to flow gently. This combined with the golden rays of autumn sunlight will give visitors beautiful photos of the poetic landscape. Some famous waterfalls in Moc Chau include Nang Tien waterfall, Dai Yem waterfall, and Ta Nang waterfall. Photo: anningthudo The pedestrian street and Moc Chau night market have just been completed. They are part of the first phase of the overall development of tourist facilities at this place. The new night market has been opened to welcome guests from August 28, 2022. This market is very beautiful, luxurious, and spacious. Currently, Van Ho district...
Đọc thêm