{"id":47791,"date":"2022-12-14T17:01:49","date_gmt":"2022-12-14T17:01:49","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=47791"},"modified":"2022-12-14T17:01:49","modified_gmt":"2022-12-14T17:01:49","slug":"rich-nations-mobilise-15-5bn-for-vietnams-coal-to-clean-transition","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2022\/12\/14\/rich-nations-mobilise-15-5bn-for-vietnams-coal-to-clean-transition\/","title":{"rendered":"Rich nations mobilise $15.5bn for Vietnam’s coal-to-clean transition"},"content":{"rendered":"

Wealthy countries and banks will provide $15.5 billion to help Vietnam transition away from coal, the UK foreign ministry announced<\/a> on Wednesday.<\/strong><\/p>\n

Half of the money is to come from governments, the Asian Development Bank and the International Finance Corporation. The rest will come from private investment co-ordinated by the Glasgow Financial Alliance for Net Zero.<\/p>\n

An initial amount of $15.5 billion in public and private finance will be disbursed over the next three to five years, according to the press release.<\/p>\n

The deal will help Vietnam to peak its greenhouse gas emissions by 2030, bringing forward a previous 2035 projection, limit its peak coal capacity to 30.2 gigawatts (GW) instead of an initially planned 37 GW, and source 47% of its power from renewable energy by 2030, the statement said.<\/p>\n

The contributors claim delivering on these targets will save around 500m tonnes of carbon dioxide by 2035. That’s about the same as the nation of Turkiye emits<\/a> every year.<\/p>\n

UK coal mine<\/strong> approval sparks global fury and hypocrisy claims<\/a><\/p><\/blockquote>\n

“Today, Vietnam has demonstrated leadership in charting an ambitious clean energy transition that will deliver long-term energy security,” U.S. President Joe Biden said in a statement.<\/p>\n

Ember’s Asia electricity analyst, Achmed Shahram Edianto, said: “This new $15.5 billion deal for Vietnam is expected to reroute the country\u2019s energy transition pathway, to significantly increase the share of renewable energy and attach a higher priority to reduce coal in their future electricity system.\u201d<\/p>\n

The deal is backed by the G7 group of big wealthy nations plus Denmark and Norway.<\/p>\n

Mostly loans<\/h3>\n

A minor part of the funding will be grants, while most of the public investment will be loans, a Reuters source said.<\/p>\n

Andri Prasetiyo, from Trend Asia said: “The initial $15 billion funding needs to offer a sufficient portion of grants or at least a more soft loan portion. I am concerned that if Vietnam\u2019s JETP arises only as a new form of loan, it could fail to support the crucial aspects of a just transition, which is strongly tied to a sense of responsibility and assistance from developed countries to developing countries.\u201d<\/p>\n

Governments split<\/strong> on ditching nature-harming subsidies in Montreal<\/a><\/p><\/blockquote>\n

Contributors have not released a breakdown of which governments are giving what amount to Vietnam. They were similarly opaque about the breakdown for Indonesia but Climate Home obtained<\/a> the details for the South Africa deal.<\/p>\n

Vietnam, among the world’s top 20 coal users, was initially slated to sign the “Just Energy Transition Partnership” with G7 nations at the global Cop27 climate summit in November, but high-level talks stalled before the meeting.<\/p>\n

To persuade Vietnam to back the offer, Western negotiators led by the European Union and Britain have repeatedly increased the amount of funding offered to Hanoi.<\/p>\n

Another point of contention was Vietnam’s imprisonment of anti-coal activists on tax evasion charges. The US has\u00a0condemned<\/a>\u00a0the imprisonment of\u00a0Khanh<\/span>\u00a0and fellow activists\u00a0Mai Phan Loi,\u00a0Bach Hung Duong and Dang Dinh Bach.<\/p>\n

AIIB finds gas plant<\/strong> in Bangladesh compatible with Paris goals<\/a><\/p><\/blockquote>\n

The deal is the third of this type reached by G7 nations, as pressure mounts on them to help poorer countries cope with climate change and transition to cleaner energy.<\/p>\n

The group signed similar deals last year with South Africa<\/a> and last month with Indonesia<\/a>. In all three negotiations, the share of grants versus loans was a battle line.<\/p>\n

The G7’s deal with Indonesia promised $10 billion in public funds to shut down coal plants there and bring forward the sector’s peak emissions by seven years to 2030. South Africa was promised $8.5 billion.<\/p>\n

Vietnam’s Environment Ministry did not immediately respond to a request for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"The deal will help Vietnam to peak its greenhouse gas emissions five years earlier than planned and scale up renewable energy generation","protected":false},"author":56,"featured_media":35862,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[208],"tags":[764],"coauthors":[4545,4320],"class_list":["post-47791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-finance","tag-vietnam","type-news"],"acf":[],"yoast_head":"\nRich nations mobilise $15.5bn for Vietnam's coal-to-clean transition<\/title>\n<meta name=\"description\" content=\"The deal will help Vietnam to peak its greenhouse gas emissions five years earlier than planned and scale up renewable energy generation\" \/>\n<meta name=\"robots\" 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