Viet Nam has declared its pledge of achieving net-zero emissions by 2050 and signed a Just Energy Transition Partnership (JETP) with the G7 countries, Norway, and Denmark, committing to accelerate its climate mitigation efforts in exchange for substantial international financial support. This calls for comprehensive market and regulatory reform to facilitate and accelerate relevant investment to achieve a rapid and radical green transformation.
In support of these endeavors, a consortium of six partners is intending to join forces to implement the ‘Shifting Investment Flows Towards Green Transformation (SHIFT)’ project in Viet Nam, enhancing know-how and capacities of relevant public and private stakeholders in the areas of green finance and energy transition. The consortium consists of Agora Energiewende, the Banking Academy of Viet Nam (BAV), the International Finance Cooperation (IFC), SNV Netherlands Development Organisation Viet Nam, the United Nations Development Programme (UNDP) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) as the consortium lead.
SHIFT will focus until mid-2028 on the implementation of green policy and investment frameworks for enhanced climate action in Viet Nam, especially in the energy, mainstreaming gender equality. The project will address both supply and demand aspects of green investment, creating a positive feedback loop that will drive the transition towards a green, low-carbon and climate friendly economy.The project has four areas of activities:
- Encouraging policies for green investment from both the public and private sectors, such as the development of related financial instruments;
- Strengthening current regulation and legal frameworks to foster energy transition, including to de-risk investments;
- Promoting the capacity of financial institutions to finance green initiatives, like the provision of technical knowledge, tools and internationally accepted good practices;
- Attracting private sector interest, particularly women-led enterprises, or those with a proven approach to promote gender equality and enhancing their capacity to stimulate green investments. Designing and implementing replicable pilot investment projects in renewable energy, energy efficiency, or other energy transition technologies to significantly reduce GHG emissions. Accelerating and enabling the scale-up and replication of piloted as well as other energy transition technologies by strengthening the capacity of public and private stakeholders and integrating energy transition technologies in enterprises’ business strategies and investment portfolios. Utilising results and lessons learned to inform policy development and revision.
The project is funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) as part of the International Climate Initiative (IKI). SHIFT aims at fostering the cooperation and collaboration among the project’s lead political partner (Ministry of Planning and Investment (MPI)), the main financial market regulators, i.e. the Ministry of Finance (MoF), the State Bank of Viet Nam (SBV), as well as the main energy sector policy maker, the Ministry of Industry and Trade (MoIT).