EUR 142 million Financing Agreement on Sustainable Energy Transition Program between Viet Nam and the European Union

(Source: EEAS)

On May 10, 2022 in Hanoi, the First Session and the Inauguration of the Steering Committee of “EU – Viet Nam Sustainable Energy Transition Programme” (SETP) with the participation of the EU Ambassador Giorgio Aliberti and the Vice Minister of Industry and Trade of Viet Nam Mr. Dang Hoang An officially kicked off the Program activities.

Speaking at the Session, the Vice Minister Dang Hoang An emphasized “In 2021 at the United Nations Climate Change Summit COP26 held in Glasgow (United Kingdom), the Prime Minister of Viet Nam has announced the target to achieve net zero emissions by 2050. Currently, the Government of Viet Nam has established a Steering Committee headed by the Prime Minister to implement the targets declared at COP26, in which energy transition is the key task thanks to the significant weight of the energy sector which accounts for 70% of greenhouse gas emissions”.

Ambassador Giorgio Aliberti also affirmed that “the European Union remains fully committed to the Paris Agreement and is at the forefront of the fight against global climate change. Given the Vietnamese Government’s ambitious commitments on climate change at COP26 to achieve net zero carbon emissions by 2050 and calling for international support, the EU has provided a grant which is new and very substantial of EUR 142 million to promote renewable energy and energy efficiency. Cooperation with Viet Nam on sustainable energy remains high on the EU agenda thanks to the need to together fight climate change and the EU’s solid experience in the energy transition”.

Following the success of the EU-Viet Nam Energy Sector Policy Support Program (ESPSP), a 108 million Euros of non-refundable grant by the European Union (EU) for Viet Nam in the period 2018-2021, on December 31, 2021, the Financing Agreement of Viet Nam – EU Sustainable Energy Transition Program (SETP) was signed by the Minister of Industry and Trade Nguyen Hong Dien, as authorized by the Prime Minister.

The SETP program, with a grant aid of 142 million Euros of Official Development Assistance (ODA), affirms the EU’s close cooperation and long-term commitment to Viet Nam’s goal of sustainable energy transition towards zero emissions in 2050. The SETP will contribute to support Viet Nam in implementing the tasks under: (i) the National Energy Efficiency Program for the period of 2019-2030 (VNEEP3); (ii) Renewable Energy Development Strategy (REDS); (iii) Viet Nam Energy Information System (VEIS).

This Agreement also aims at comprehensive and sustainable cooperation between Viet Nam and the EU. The EU committed to share experiences and assist in solving challenges that Viet Nam faces in the energy transition. SETP is the ultimate support in the focus area of sustainable energy within the Multi-annual Indicative Program (MIP) for Viet Nam for the period 2014-2020.

The Financing Agreement for the SETP program was signed at the time the European Union approved the Viet Nam – EU Multi-annual Indicative Program, period 2021-2027, with an expected financial amount of 210 million Euros as grant aid for the period 2021-2024, in which low-carbon development is a priority area. The European Union and Viet Nam share the same desire to continue cooperation and promote the full potential of the two sides to the success of the Program.

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