The Ministry of Planning and Investment organized a workshop on July 23, 2024 with the topic "Opportunities to access GCF capital". Attendees of the workshop were representatives from government agencies, major international financial institutions and VDB. The workshop focused on strategies for using GCF funds and developing a Country Program to identify eligible projects. Mr. Nguyen Hoang Trung presented VDB's orientation in attracting and taking advantage of foreign capital in general and GCF capital in particular, for the 2024-2027 period. He emphasized that GCF capital with highly preferential conditions will be focused on investing in green projects aimed at Vietnam's climate change mitigation and adaptation goals.
Following the workshop, the GCF delegation engaged in several direct working sessions with VDB to discuss GCF-related matters. Specifically, discussions centered on:
(i) Regarding the projects submitted to the GCF by VDB as the National Implementing Entity:
The "Net Zero Climate Change Resiliency for Children" (NZCRC) project, spearheaded by the United Nations Children's Fund (UNICEF), and the "Modernization of Cau Son and Cam Son irrigation systems" project, initiated by the Ministry of Agriculture and Rural Development. Both projects have registered for GCF funding, seeking a $50 million allocation each through grants and concessional loans. VDB has underscored the high priority accorded to these projects, particularly NZCRC, given its crucial role in climate change mitigation, with a specific focus on Vietnamese children. Ms. Diane McFadzien shared updates on the appraisal process for both projects, indicating anticipated progress in the near future.
(ii) Regarding the mobilization of GCF capital for the 2024-2027 period, Mr. Nguyen Hoang Trung presented the VDB's capital requirements for climate change mitigation, aligned with GCF's six investment policy standards and Vietnamese government priorities. The presentation outlined four proposed financing facilities: (1) financing facility for clean energy and energy transition, (2) financing facility for clean agriculture using high-technology, (3) financing facility for water supply, and (4) financing facility green credit. It is expected that the total of the above 4 facilities is worth 200 million USD mobilized from GCF's non-refundable grant and preferential loans. The proposal received significant interest and commendation from the GCF delegation. Ms. Diane McFadzien affirmed the proposal's alignment with GCF goals and policies, and announced that GCF has provided grants to build projects that meet strict technical requirements of the Fund.
(iii) In addition, VDB provided updates to the GCF delegation on the progress of fulfilling the effective conditions of the Accreditation Framework Agreement (AMA) and the implementation status of two Readiness support grants totaling $1.2 million. The latter includes a $1 million grant for “Strengthening capacity to accelerate green finance and development of country-driven project formulation in Viet Nam”, led by the Ministry of Planning and Investment, with VDB acting as both co-beneficiary and delivery partner.
(iv) GCF introduced new policies and non-refundable grants to enhance the capacity of Accredited Entities. As an accredited entity, VDB is eligible to directly apply to GCF for up to $3 million in capacity-building support from the GCF for the 2024-2027 period.
The working sessions between the GCF delegation and VDB were productive and collaborative exchanges characterized by open dialogue and in-depth discussions. Both parties explored opportunities, shared perspectives, and identified challenges related to mobilizing GCF capital for climate change mitigation projects aiming to reduce net zero emissions by 2050 according to the Prime Minister's commitment at the 26th Uinted Nations Climate Change Conference (COP 26). /.