West unveils innovative climate partnership with Vietnam

Vietnam and the collective ‘West’ have signed a major agreement to finance the decarbonisation of the Asian country’s economy.

The US, European Union, the UK, France, Germany, Italy, Canada, Japan, Norway and Denmark signed the deal that will mobilise an initial $15.5bn of public and private finance over the next three to five years to support Vietnam’s green transition.

Future projects include energy efficiency, electric vehicle infrastructure, as well as renewable power, transmission and more.

The agreement is being conducted under a Just Energy Transition Partnership (JETP), which is built upon last year’s G7 Partnership for Global Infrastructure and Investment (PGII) programme.

Vietnam is set to adopt a JETP Resource Mobilisation Plan (JETP - RMP) that will set the framework for the investment, which the EU says will utilise a “combination of appropriate financial instruments”.

According to the UK statement, PGII is currently negotiating with “several” other countries with similar agreements.

“The JETP model is a game changer in the fight against climate change - using international aid to unlock billions of dollars of private finance,” said UK prime minister Rishi Sunak.

President of the United States, Joe Biden said the "historic commitment will catalyze investment and economic growth and create tremendous opportunity for the Vietnamese people, while advancing the fight against the global climate crisis."