UK continues to support Vietnam’s energy transition

The British Embassy in Vietnam has officially launched a program to support access to investment capital for low-carbon projects.

The Climate Finance Accelerator (CFA) is a technical assistance program funded by the UK Government to respond directly to the climate emergency and the widespread effects of climate change.

According to the CFA program, though capital flows for the climate finance sector are still available in the market, ensuring funds go to projects remains a challenge.

The program allows project developers to link with financial institutions capable of developing and financing large-scale climate projects.

With this approach, the CFA contributes to Vietnam’s overall efforts in realizing its Nationally Determined Contribution (NDC) in the Paris Agreement, reducing greenhouse gases.

The initiative is a continuation of the UK’s efforts as host country of COP26, with the establishment of the Just Energy Transition Partnership (JETP) with Vietnam recently announced.

The objective of the initiative is to mobilize financial resources and technical assistance to accelerate Vietnam’s clean energy transition.

H.E. Iain Frew, British Ambassador to Vietnam, said the process of implementing the CFA program in eight countries around the world has seen great success. “It is a great sign that low-carbon projects in Vietnam will receive technical assistance to facilitate fundraising,” the Ambassador added. “The program is testament to the UK’s commitment to supporting Vietnam’s green transition within the JETP framework.”

The CFA program in Vietnam will select 8-12 projects that need to raise capital of $5 million or more to receive training in technical, financial, and mitigation potential and gender and social inclusion aspects. The objective is to help them obtain financing with different national and international investors. Delivery of the CFA in Vietnam is led by PwC (Vietnam).