G7 Countries Along With Denmark And Norway To Provide USD 15.5 Billion To Vietnam To Reduce Emissions

Officials announced that a group of nine industrialized nations approved a deal to give Vietnam USD 15.5 billion to reduce its greenhouse gas emissions. The money will be used to shift from coal to renewable energy. 

Together with Norway and Denmark the Group of Seven major economies stated in a statement that Vietnam’s goal is to reduce its greenhouse gas emissions to “net zero” by 2050. This goal, experts say, must be achieved globally to limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit).

The Just Energy Transition Partnership with Vietnam is one of a number of agreements being negotiated by rich and developing nations. Last year, South Africa signed the first such agreement. In Indonesia, a similar deal was made last month.

Rishi Sunak, British Prime Minister, stated that Vietnam is a vibrant, emerging economy in the heart of Southeast Asia. “The country can reduce its carbon emissions and create new jobs and growth with the investment we make today.”

G-7 includes the United Kingdom, Canada, France, Italy, Japan, Germany as well as the United States.

The deal, according to Joe Biden, will help Vietnam “deliver long-term energy security,” provide opportunities for its population, and “fight against the global climate crises.”

Over the next three to five years, the USD 15.5 billion in funding will be sourced from both public and private sources, most of it in loans.

Vietnam can use the money to increase its electricity grid and to produce more renewable energy. Also, the country will increase its 2030 target for electricity generated from renewable sources from 36% to 47%.

These ambitious targets will result in approximately 500 megatons of emissions reductions by 2035.