Global Gateway: Team Europe and Viet Nam sign over €500 million in agreements underpinning the Just Energy Transition Partnership
Viet Nam and the European Investment Bank signed a memorandum of understanding to support the implementation of the Just Energy Transition Partnership (JETP) in Viet Nam, signifying a mutual commitment to put in place a multi-projects credit facility worth €500 million. Once this credit facility is finalised and inked in the near term, it will establish a framework loan that will finance projects supporting decarbonisation and energy transition.
In addition, the EU will make available €16.6 million in technical assistance for Agence Française de Développement (AFD) to support Electricity Viet Nam (EVN) in the preparation and implementation of projects linked to JETP. The technical assistance facility will accompany a total of €1 billion sovereign and non-sovereign loans provided by Team Europe (AFD, KfW and EIB).
On the policy side, the EU is supporting the reforms in the energy sector, including to establish the legislative and technical conditions – on renewable energy, energy efficiency, transmission lines/grid – for the JETP to deliver sustainably, through the Sustainable Energy Transition budget support Programme (SETP), to the tune of €142 million.
Speaking in Brussels, President of the European Commission Ursula von der Leyen said: “Today, we are taking an important step to support Viet Nam’s ambitious Net Zero goal for 2050. The European Commission, the EIB and Viet Nam are partnering to support the renewable energy transition and energy security. With this €500 million funding, Global Gateway is making a difference for the people of Viet Nam.”
Background
Through Global Gateway, the EU is committed to supporting Viet Nam in achieving a just energy transition and fulfilling its national and international climate ambitions through a meaningful implementation of the Just Energy Transition Partnership (JETP). The implementation of Global Gateway in Viet Nam will also focus in the areas of green, circular economy and sustainability, as well as education and skills. Projects will include support to forest value chains, TVET, and skills development, amongst others.
The Global Gateway Forum brings together for the first time an assembly of government representatives from the European Union and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in transformative infrastructure – hard and soft- to deliver on SDGs and sustainable growth and resilience worldwide.
Global Gateway is the EU’s positive offer to reduce the worldwide investment gap and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.
The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, it aims to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
More Information
Political Declaration on establishing the Just Energy Transition Partnership with Viet Nam
International Agreement to support Viet Nam’s ambitious climate and energy goals
Quote(s)
Today, we are taking an important step to support Vietnam’s ambitious Net Zero goal for 2050. The European Commission, the EIB and Viet Nam are partnering to support the renewable energy transition and energy security. With this €500 million funding, Global Gateway is making a difference for the people of Viet Nam.
Climate change threatens everybody. It can be tackled only through multilateral cooperation – to which the EU’s Global Gateway contributes. The EU is working with Viet Nam to support its just energy transition, which can be a source of new sustainable growth.
The EIB’s €500 million commitment goes beyond finance, driving a transition to sustainable energy and a resilient economy in Viet Nam. Through initiatives like Global Gateway, together with the European Commission we’re turning global challenges into opportunities for sustainable development and innovation.
France fully supports Team Europe to make Global Gateway a success for all our partners. At the occasion of the Forum, France is delighted to further support Viet Nam through another Just Energy Transition Partnership (JETP): this partnership, designed along Viet Nam’s national priorities as per the country-ownership principle of the Paris Pact for People and the Planet, is a prime example of how to succeed in energy transition. On top these investments along with EIB and KfW, France will provide – through AFD – technical support to sustain this partnership.
