The European Union (EU) has released EUR22 million ($23.6 million) of budget support to the Vietnamese government in the framework of the EU-Vietnam Sustainable Energy Transition Program (SETP).
This brings the total disbursement by the EU under this program to EUR48 million ($51.5 million) in grant support to the national budget under agreed performance conditions, the EU said in an announcement on Friday.
Under its Global Gateway Strategy and European Green Deal agenda, the EU is leading global efforts to fight climate change and to achieve net-zero emissions. The block is committed to support Vietnam in achieving a just energy transition and fulfilling its national and international climate ambitions through a meaningful implementation of the Just Energy Transition Partnership (JETP).
The implementation of Global Gateway in Vietnam will also focus on the areas of green, circular economy and sustainability, as well as education and skills development.
The EU-funded SETP budget support program of EUR142 million ($152.5 million) in grants contributes to the JETP, aiming to accelerate Vietnam’s sustainable energy transition process. It affirms the EU's close cooperation and long-term commitment to contributing to the country's clean energy transition, as well as its overall objective to achieve net zero emissions by 2050.
In late October, the European Investment Bank (EIB) signed an agreement to finance Vietnam's implementation of the $15.5-billion JETP in the country. The European Commission (EC) said the signed memorandum of understanding (MoU) between the two sides would put in place a multi-projects credit facility worth €500 million ($528.8 million).
Once this credit facility is finalized and inked in the near term, it will establish a framework loan that will finance projects supporting decarbonization and energy transition.
Vietnam and the International Partners Group (IPG) signed the JETP in December 2022. The latter comprised of the EU, the UK, France, Germany, the U.S., Italy, Canada, Japan, Norway and Denmark.
The JETP will support Vietnam to deliver on its ambitious Net Zero 2050 goal, accelerate the peaking of its greenhouse gas emissions and transition away from fossil fuels to clean energy. The JETP will mobilize an initial $15.5 billion of public and private finance over the next three to five years to support Vietnam's green transition.