GCF funds US$86.3 mln for Vietnam's energy efficiency projects

On behalf of Green Climate Fund (GCF), World Bank in Vietnam has just signed an agreement to provide non-refundable aid for the State Bank of Vietnam to develop the financial and commercial markets on energy efficiency investment projects for the industrial sector. 
(Illustrative photo:SGGP)
(Illustrative photo:SGGP)

Accordingly, the Green Climate Fund granted Vietnam a non-refundable aid worth US$11.3 million and US$75 million of guarantee. Of which, US$8.3 million will be used by the private sector to identify and execute energy efficiency projects and the rest ones will be spent to establish a risk-sharing mechanism to provide partial credit guarantees, to support local banks which might face defaults on loans for energy efficiency projects.

On the other hands, the fund will mobilize US$250 million from commercial financing to allow companies to borrow according to more competitive terms and low collateral requirements.

With the total financing of US$86.3 million, GCF will contribute to helping Vietnam to reach set energy efficiency targets under the green growth and a low-carbon emission strategy

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