11 innovative climate projects selected to join Cimate Finance Accelerator Vietnam

Eleven exciting project that help to tackle climate change in Vietnam have been selected as the second cohort of Climate Finance Accelerator (CFA) Vietnam, according to the British Embassy.

The projects cover clean energy and energy transition, e-mobility, AFOLU (agriculture, forestry and other land uses), circular economy, and waste management, and have the potential to benefit communities across the country. These projects are seeking a total of $436 million in funding.

The projects were selected in sectors where regulatory and policy frameworks are already well established in Vietnam, therefore reducing the chances of project delays. The climate mitigation and carbon reduction potential of the projects were important parts of the selection process, and also particularly strong aspects of several projects.

Each project will receive one-to-one and group support tailored to increase their chances of attracting investment from Vietnamese and international investors. The technical and financial expertise shared with the projects will include advice on financial models, how to prepare pitch materials, and how to enhance gender equality and social inclusion (GESI).

The CFA is part of the UK Government’s efforts to help Vietnam meet the commitments made by Vietnam’s Prime Minister Pham Minh Chinh at COP26 in Glasgow in 2021 and offer support to implement the Vietnam Just Energy Transition Partnership (V-JETP) that was agreed in December 2022.

British Ambassador to Vietnam, Iain Frew, said that the variety of projects selected to be part of the second phase of CFA Vietnam highlights the many exciting and innovative ways that Vietnamese businesses are delivering for the planet.

“I’m incredibly pleased that the projects from the first phase of the program have seen such positive follow-up from investors and I’m sure that these new projects will experience the same benefits and positive outcomes from being part of the CFA program,” Frew said.

Following the capacity building and mentoring sessions, the projects will meet with investors and financial institutions at a workshop in May 2024. This will allow project developers to further refine their financial structuring through personalized discussions with interested financial institutions. The event will also provide an opportunity for participants to network and for policymakers to understand the challenges faced by other stakeholders in the climate finance space.

PwC chairwoman Dinh Thi Quynh Van said: “We would like to congratulate the 11 selected projects for the great work they are doing to help foster innovation and tackle climate challenges! PwC Vietnam is honoured to continue its role as the in-country delivery partner for CFA Vietnam, an initiative that aligns with our commitment to ESG business practices and agenda.

“The current landscape is favourable for low-carbon projects, coinciding with Vietnam's Net Zero commitments and ongoing regulatory improvements across sectors. We are excited to observe the growing interest from investors in low-carbon projects in Vietnam and look forward to seeing more successful engagements made between the projects and potential investors.”

The below projects belong to the second cohort of the CFA Vietnam program.

Apeh Viet Dan - eco-friendly, responsible shrimp farming – using 80% less water, no antibiotics, and protecting the oceans. This is achieved by “recycling” production water, using innovative technologies (hardware and software) to modernize farming practices, and adequately treating wastewater.

Babio - research, production, and supply of environmentally-friendly biodegradable products made from green materials such as starch and cellulose to replace traditional plastics.

Cenergy - domestically manufacturing redox flow batteries and providing reliable energy storage solutions to industrial customers.

CME Biomass - With a holistic afforestation - production – biomass power plant ecosystem, CME Biomass aspires to transform traditional slash-and-burn wood production with low economic efficiency to concentrated production, applying advanced science and technology to improve productivity and value.

Dai Viet International Pharmaceutical Technology - developing a model for cultivating spirulina platensis on an industrial scale, transforming carbon emissions into a high-value nutrient source for humans and livestock. It directly absorbs and reduces a significant amount of carbon dioxide in the atmosphere, thereby indirectly mitigating greenhouse gas emissions throughout the livestock value chain.

Emmay and Colleagues - creating a sustainable and healthier source of protein from fungi and plants. Combines precision fermentation technology with fungi and plants to create millions of tons of protein which is made into products including fungi/plant-based foods, drinks, confectioneries, snacks and sauces.

Grac - providing digital solutions in waste management and recycling in Vietnam in a more efficient and sustainable way.

Lagom Vietnam in partnership with UPP! UpCycling Plastic - upcycling low-value and difficult to recycle plastic waste at a large scale and low cost into building materials for the local market; creating planks, poles, and roadside curbs that are cheaper and more durable than products made from wood or cement.

Selex Smart Electric Vehicles - an e-mobility ecosystem for urban transport using electric two-wheelers comprising electric scooters, highly compatible battery pack; automatic battery swapping station; Internet of Things management platform.

TGS Tra Vinh Green Hydrogen/Ammonia Starter Project 2.5 MW - producing and selling green hydrogen/ammonia, a clean and sustainable energy, to the industrial, transportation, and energy sectors.

Vietnam Food (VNF) - applying biotechnology with a zero-waste mindset to upcycle shrimp by-products into valuable applications with a strong focus on agriculture by maximizing nutrient recovery and minimizing resource usage.

The Climate Finance Accelerator (CFA) is a £11.8 million ($15 million) technical assistance programme funded by International Climate Finance (ICF) through the UK Government's Department for Energy Security and Net Zero (DESNZ). The CFA is implemented in 10 countries (Vietnam, Colombia, Egypt, Mexico, Nigeria, Pakistan, Peru, South Africa, Türkiye, and Uganda) and is working to develop a sustainable pipeline of bankable, low carbon projects in each country.

The CFA is part of the UK's efforts to support climate action on a global scale, facilitating access to finance and helping governments achieve climate targets under the Paris Agreement. The UK government has announced up to £40 million ($50.88 million) to extend the CFA programme from late 2024 until 2029. This will support up to 750 low carbon projects in up to 16 countries across Asia, Latin America, and Africa. CFA Vietnam is implemented by PwC Vietnam.