US$39 million needed for green transportation initiative in Can Gio District

HCMC is piloting a green transportation initiative in Can Gio District, focusing on transitioning to electric vehicles and expanding public transportation to reduce emissions.

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Chairwoman Nguyen Thi Le of the HCMC People’s Council is chairing the conference


The HCMC People’s Council yesterday cooperated with the HCMC Institute for Development Studies (HIDS) and HCMC University of Transport (UTH) to hold a conference themed “Policies and Solutions for Green Transportation Development in HCMC”.

Deputy Director Vo Khanh Hung of the HCMC Department of Transport presented the city's plan to control emissions and pilot green transportation initiatives in Can Gio District.

Phan Thuy Kieu, a researcher at the HIDS, highlighted in her presentation that motorcycles were the primary source of air pollution in Can Gio. With motorcycles accounting for over 70 percent of all vehicles, they contributed approximately 7,453 tonnes of carbon emissions annually.

To address this issue, the proposed solutions centered on motorcycles, including promoting the shift to electric motorcycles, expanding public transportation, and providing parking facilities for personal motorcycles at transportation hubs. Additionally, the plan suggested restricting petrol-consuming motorcycle traffic on certain roads or lanes.

The research team has proposed programs and projects that need to be implemented, namely distributing incentives to support people and households to switch to electric motorbikes; developing green public transport, and constructing infrastructure to promote the use of public transport.

The implementation roadmap is divided into 3 phases:

  • 2024-2025: Provide 100 percent funding for low-income households and 80 percent funding for near-poor households to switch to electric vehicles.
  • 2026-2027: Encourage at least one household member to switch to an electric vehicle.
  • 2028-2030: Encourage individuals and households to switch to electric vehicles through incentives like reduced registration fees and fixed interest rates on loans.

The total estimated cost of the transition to clean energy vehicles is over VND974 billion (US$39 million), with the government contributing approximately VND384 billion ($15.4 million) and the remaining funds sourced from businesses and the community.

Chairwoman Nguyen Thi Le of the HCMC People’s Council emphasized the importance of the insights and solutions presented. She stated that these findings would serve as a foundation for implementing the objectives outlined in the National Assembly’s Resolution No.98/2023/QH15, which focuses on piloting specific mechanisms and policies to develop HCMC.

The conference provided a solid basis for HCMC to develop comprehensive programs and plans to transition from fossil-fuel-powered vehicles to clean energy vehicles, aligning with the city's goals of sustainable development and a green economy. The Department of Transport has been tasked with implementing the pilot emissions control project in Can Gio District.

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