Workers from Vietnam Electricity (EVN) instruct a business owner in Hà Nội's Thanh Oai District on how to use power economically and efficiently. — VNA/VNS Photo HÀ NỘI — The World Bank, acting on behalf of the Green Climate Fund (GCF), has signed a grant worth US$11.3 million with the State Bank of Việt Nam to support the development of a commercial financing market for industrial energy efficiency investments. The total financing from the GCF also includes a $75 million guarantee. Out of the grant, $8.3 million will be used to build capacities for the private sector to identify, appraise and execute energy efficiency projects. It will also provide technical assistance to the Ministry of Industry and Trade and authorities to strengthen policy frameworks and regulations and create an enabling environment to accelerate the energy efficiency market in Việt Nam. The remaining grant funds and the guarantee will be used to establish a risk-sharing facility to provide partial credit guarantees to support local banks who may risk potential defaults on loans for energy efficiency projects. By reducing lending risks, the facility is expected to mobilise about $250 million of commercial financing to be provided to industrial enterprises and energy service companies at competitive terms and with low collateral requirements. Carolyn Turk, Country Director for the World Bank in Việt Nam, said: “Scaling up energy efficiency is the single best and lowest cost option to achieve multiple goals at once: meeting energy demand, preventing pollution and reducing greenhouses emission while also increasing industry competitiveness.” “Against the context of limited public financing for energy, the risk-sharing facility is an innovative financial instrument to crowd in private sector investment financing for a greater uptake of industry-wide energy efficiency measures,” she added. The grant and guarantee are executed under the 'Việt Nam Scaling up Energy Efficiency …
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Nguyen Thi Nga – Top Vietnamese influencer
Deputy Prime Minister Truong Hoa Binh granted Madame Nga a certificate for her valuable contributions to the ASEAN business community BRG Group, under the apt leadership of chairwoman Nguyen Thi Nga, has gone out of its way to share the burdens of the communities in Vietnam and incite businesses across the ASEAN to greater action for the common good. Last year’s difficulties forced a halt to most large-scale community events. But going against the grain, the ASEAN Business Awards (ABA) were still organised to honour the bloc’s best performers, continuing an annual tradition going back to 2007. Nga, an organiser of ABA 2020, shared that the year was a hard one for both ASEAN and Vietnamese businesses but it was also a year for kind-hearted actions and activities that need to be recognised and honoured. “That is the reason why we could not allow the ceremony to be cancelled – to highlight businesses which have not only been working to maintain development but also to make significant contributions to the prevention of the pandemic,” she said. “The prime minister expressed his full support for us to organise the annual event. His belief was great motivation for us to go ahead with this prestigious and meaningful ceremony for the business community during the hard time of the pandemic,” Nga shared with VIR. As a result, 58 corporations from across ASEAN were honoured in 10 categories at ABA 2020 last November in Hanoi, sharing the stories of each entrepreneur and business to inspire the public and the entrepreneurial community to greater action. “In 2020, many ASEAN businesses and entrepreneurs have been on the frontlines of COVID-19 action. The business community has helped mitigate the damage on the regional economy while ensuring jobs for employees and maintaining business growth,” Nga said. “At the same time, they have contributed great and valuable resources to epidemic prevention and control in their respective countries. This dedication deserves to …
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Vietnam provided with US$86.3 million to boost energy efficiency investments
The total support from GCF also includes a US$75 million guarantee. US$8.3 million from the grant will be used to build capacity in the private sector to identify, appraise and execute energy efficiency projects. It will also provide technical assistance to the Ministry of Industry and Trade and the relevant authorities to further strengthen policy frameworks and regulations and create a helpful environment aimed at accelerating the energy efficiency market in Vietnam. The remaining grant funds and guarantee will be used to establish a risk-share facility to provide partial credit guarantees to local banks who may risk potential default on loans for energy efficienct projects. By reducing lending risks, the facility is expected to mobilize around US$250 million of commercial financing, to be provided to industrial enterprises and energy service companies at competitive terms and with low collateral requirements. Scaling up energy efficiency is the single best and lowest cost option to achieve multiple goals at once: meeting energy demand, preventing pollution and reducing greenhouse gas emissions while also increasing industry competitiveness, Carolyn Turk, Country Director for Vietnam said. In a context of limited public financing for energy, the risk-share facility is an innovative financial instrument in private sector investment financing for a greater uptake of industry-wide energy efficiency measures, she added. The grant and guarantee are to be executed under the Vietnam Scaling up Energy Efficiency Project which aims to support Vietnam in achieving the energy efficiency targets set out in the Green Growth Strategy as well as emission reduction objectives pledged under the National Determined Contributions. The World Bank’s Low Carbon Study estimates that Vietnam could save up to 11 GW of new generation capacity by 2030 if comprehensive demand-side energy efficiency investment takes place. The energy efficiency investment need for key industries …
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