UK launches phase 2 of Climate Finance Accelerator in Vietnam

The British Embassy in Hanoi has announced a new wave of capacity building support for low carbon projects that can benefit communities across Vietnam.

The UK Minister of State for Energy Security and Net Zero, Graham Stuart, introduced the second phase of the Climate Finance Accelerator (CFA) program at a launch event in Ho Chi Minh City earlier this month.

“After CFA Vietnam’s successful first phase, we are now looking for projects at the pre-feasibility stage and seeking investment of at least $5 million for phase two,” the British Embassy said Thursday.

The call for proposals is now open and interested projects can apply online.

Launched in Vietnam in 2022, the CFA is a technical assistance program funded by the UK government that responds directly to the urgency and scale of the climate crisis. It brings together project developers and financial experts who can develop and finance climate projects at scale, offering technical assistance and support with financial models and pitch materials, as well as advice about enhancing gender equality and social inclusion (GESI).

“The launch of the next phase of CFA Vietnam is a testament to the success and impact of the first phase. Our alumni projects met potential investors through the program and I’m delighted that conversations are continuing,” British Ambassador to Vietnam Iain Frew said.

“We are very grateful to the financial organizations who have supported the CFA so far and pleased that they are continuing to work with us for phase two.

“The UK is committed to supporting Vietnam to transition to a net zero, climate-resilient and nature-positive future,” he said.

Dinh Quynh Van, chairwoman and markets leader, PwC Vietnam said that PwC continued her company’s role as the in-country delivery partner for the CFA Vietnam, bringing together financial institutions and innovative, climate-friendly projects to support the nation’s climate ambitions.

The CFA is currently implemented in nine countries – Colombia, Egypt, Mexico, Nigeria, Pakistan, Peru, South Africa, Turkey, and Vietnam – and is working to develop a sustainable pipeline of bankable, low carbon projects in each country.

Phase one of CFA Vietnam included nine innovative low carbon projects seeking a total of over £500m investment (around $635 million) from sectors including renewable energy, energy efficiency, e-mobility, circular economy, and waste management.

A two-day workshop this May brought these projects together with interested financiers, including international and local banks, developmental finance institutions, climate funds, and private equity funds, to discuss potential funding opportunities.