On behalf of the Green Climate Fund (GCF), the World Bank has signed a grant worth USD 11.3 million issued to the State Bank of Vietnam (SBV) to to support energy efficiency investments in Vietnam. A USD 75 million guarantee is also included in the GCF’s overall funding assistance.
Accordingly, the private sector will use USD 8.3 million to identify and implement several energy programs, while the remaining funds will be assigned to create a risk-sharing scheme to offer partial credit guarantees to assist local banks that might face loan defaults for energy efficiency projects. A total of USD 250 million of commercial funding will be raised for the project.
According to the World Bank’s Low Carbon Study, Vietnam could save up to 11GW of new generation capacity by 2030 if comprehensive demand-side energy efficiency investments are finalized.