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 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.”
 |
| 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.
The post ADB Provides Climate Financing Package for Electric Mobility in Viet Nam appeared first on Vietexplorer.com.
View more from VietExplorer:
Hanoi conducts rapid mass Covid-19 test for people returning from Da NangCheckpoints rolled out across Da Nang to halt spread of COVID-19
Phu Yen, Quang Nam temporarily shut down tourist destinations from July 29
Phia Thap incense village in Cao Bang
All-out efforts made to bring stranded Vietnamese people home
Hue Festival 2020 pushed back to next year amid COVID-19 fears
Local boyband Chillies represent country in music project for COVID-19 fight
First death related to COVID-19 in Vietnam
Vietnamese star defender leaves Dutch club for V.League 1 side as loan ends
Hoi An life seen through café windows
Unique traditional craft of soya sauce making in Ban Village
Residents of blockaded areas of Da Nang wait for COVID-19 tests despite rain
Thousands of Asian openbills forage for food in central Vietnam
FIFA bans 11 Vietnamese youth players for betting
Vietnam to post world’s fifth-highest economic growth: WB
Travel hit by COVID-19 again
Quang Nam takes measures to curb epidemic
Indulge in water sports at forthcoming Da Nang Fantasticity Festival 2020
Businesses in Hanoi’s Old Quarter shutdown amid COVID-19 fears
Kon Tum, where the wild leaves are
Comments
Post a Comment