Japan, US, Australia to assist Vietnam in decarbonisation

Tokyo - Government-backed financial institutions from Japan, the US, and Australia have pledged to support Vietnam's efforts to cut carbon emissions, according to the chairman of the Japan Bank for International Cooperation (JBIC).

JBIC Chairman Tadashi Maeda revealed the plan at an Indo-Pacific business forum in Tokyo on January 12, NHK reported.

JBIC, together with the US International Development Finance Corporation, and Export Finance Australia, will launch a new framework for support.

In consultation with the Vietnamese Government, they will help the Southeast Asian nation switch to thermal plants fueled by liquefied natural gas and expand the use of renewable energy.

They also aim to create business opportunities by introducing technologies for decarbonisation.

Vietnam has set a goal of achieving net-zero emissions by 2050. However, it faces the difficult challenge of maintaining economic growth while reducing its reliance on coal for power generation, according to NHK.

With 2030 not that far away, if nations and companies are to accelerate towards their net-zero targets, voluntary carbon markets have an essential part to play.

The government’s landmark announcement in 2021 that Vietnam will achieve net-zero carbon emissions by 2050 and phase out coal power by the 2040s was both bold and visionary. It marks a significant milestone in the country’s development trajectory.

Vietnam’s call for international assistance for realising its ambitious climate and energy goals has received a major response with major funding, which will contribute to helping the country achieve its net-zero emissions dream by mid-century.