USAID funds $11 million to help Ho Chi Minh City achieve net-zero emissions goal

On May 17, the United States Mission to Vietnam, through the US Agency for International Development (USAID), and Ho Chi Minh City Department of Industry and Trade (DoIT) celebrated their joint success in a five-year partnership advancing renewable energy and energy efficiency in the city.

“Our partnership with Ho Chi Minh City through USAID’s Vietnam Urban Energy Security project has helped to advance the city’s clean energy transition,” said USAID/Vietnam Mission director Aler Grubbs. “We applaud Ho Chi Minh City for its visionary clean energy plans, which serve as a model for how cities across Vietnam can improve energy security, increase environmental resilience, and advance net-zero emissions goals.”

The development of the city’s Net Zero Emission Strategy and its implementation roadmap, is accompanied by a strategy to expand clean and new energy sources. These strategies will be vital to guide the city’s renewable energy and energy efficiency efforts in the years to come.

The city has also organised the first energy efficiency awards to recognise enterprises for their energy efficiency performance and achievements.

The project has helped mobilise $4.2 million for clean energy developers and startups working on projects involving green hydrogen, battery energy storage systems, electric motorbikes, and electric transportation systems.

In addition, more than 500 staff from key financial institutions have received training on advanced financial instruments like green bonds and clean energy investments to facilitate lending for clean energy projects. The project has also trained nearly 200 government officials, energy managers, and technical managers to promote the adoption of energy efficiency policies and measures.

Another achievement is the establishment of the Innovation Challenge Fund, which has provided grants to seven innovative solutions to address urban energy and environmental issues in the city, enabling innovators to bring their cutting-edge ideas to life.

Feasible solutions to promote green transformation and related business opportunities were offered at a major forum last week.

Vietnam is among five Asia-Pacific economies that have exceeded the decarbonisation rate targets outlined by their Nationally Determined Contributions (NDCs), according to PwC's Net Zero Economy Index 2023.

The path towards net zero was discussed at a workshop themed “Towards Net-Zero: Canada-Vietnam Experience Sharing”, held in Ho Chi Minh City on March 28.