Vietnam expects US support in climate finance

Vietnam wants US support in negotiating with development partners for climate finance that will fuel the Southeast Asian country's low-carbon path until 2050.

Prime Minister Pham Minh Chinh and US Special Presidential Envoy for Climate John Kerry in Hanoi on September 5. Photos: VGP, Thach Thao

Hanoi hopes that Washington continues to support Vietnam’s energy partnership with the development partners to have a potential source of additional support for its energy transition, which is critical to the implementation of net-zero commitments it made last year at the 2021 United Nations Climate Change Conference (COP26).

Climate finance is one of the two main issues together with technology that Vietnam seeks from the US during the meeting between Prime Minister Pham Minh Chinh and US Special Presidential Envoy for Climate John Kerry in Hanoi on September 5.

In terms of financing, Vietnam anticipates that its development partners will offer loans with affordable interest rates to support the growth of the renewable energy industry, the construction of a power transmission facility, the provision of carbon capture technology, and the development of a system for the fair sale of renewable energy in accordance with the income of the Vietnamese people.

In terms of technology, the prime minister asked that development partners support the transfer of renewable energy technology, assist Vietnam in developing a manufacturing sector for renewable energy equipment, and create an accurate map of solar and wind power, including onshore and offshore in each region.

On this occasion, Chinh hoped that Kerry would continue to promote the resilience of vulnerable populations in the Mekong Delta.

For his part, Kerry said the US consistently attaches importance to the Comprehensive Partnership with Vietnam, supporting Vietnam to play an active and substantive role in the region and in responding to international issues, including climate change.

Kerry affirmed that Washington will maintain its assistance to Vietnam’s climate response, with a focus on developing green energy, sustainable infrastructure, and smart management of water and natural resources.

During the meeting, the Vietnamese PM said Vietnam is making comprehensive and drastic efforts in promoting green growth and responding to climate change to implement its commitments at COP26.

Accordingly, it considers achieving net-zero goals and switching from fossil energy to clean and renewable energy as an inevitable development trend in the world as well as for Vietnam. The PM affirmed that dealing with climate change requires a global solution in which people must be put at the center; emphasizing the need for the energy transition to ensure the principle of equality.

US Special Presidential Envoy for Climate John Kerry and Ben Tre officials.

Climate change is one of the key pillars of US-Vietnam relations. The two sides agreed on the importance of combatting the climate crisis, increasing resilience, and collaborating towards a clean energy future.

Through the US Agency for International Development (USAID), Washinton is working on four main projects, including “Leveraging the Private Sector in Climate Action” which boosts Vietnam’s competitiveness, expands market opportunities for US companies, and strengthens Vietnam’s environmental policy; “Expanding Clean Energy and Electric Vehicles” that aims to accelerate Vietnam’s transition to a clean, secure, and market-driven energy system; “Protecting the Mekong Delta region” aims to protect key coastal habitats in the Mekong Delta region for sustainable fisheries, climate change adaptation and biodiversity conservation; and “Accelerating Climate-Smart Agriculture” that can address shared climate challenges and create innovative solutions to improve food security and drive economic growth around the world.

John Kerry, who is the first US Special Presidential Envoy for Climate, took lots of efforts to develop cooperation in this field by hosting Prime Minister Chinh in the US in May 2022 and visiting Vietnam in February 2022.

During this trip to Vietnam, Kerry traveled to Ho Chi Minh City and the Mekong province of Ben Tre on September 2-4, and to Hanoi on September 4-6 to meet with government officials, civil society representatives, and business leaders to build consensus on key actions to address the climate crisis and accelerate the transition to a clean energy economy.

US Special Presidential Envoy for Climate John Kerry and Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen.

Regarding the US-Vietnam cooperation in climate response, Holly Lindquist Thomas, an Environment, Science, Technology, and Health Officer from the US Embassy in Hanoi, stressed the necessity of action across all categories: government, companies, non-governmental organizations, students, and all visuals in addressing climate challenges. In recent years, the US Government has invested millions of dollars in local communities through regional environmental programs such as the Mekong-US partnership through initiatives that will prepare young leaders to tackle serious issues of climate change and sustainability, she shared with The Hanoi Times.