The International Partners Group (IPG), including the European Union, the UK, France, Germany, the US, Italy, Canada, Japan, Norway and Denmark today [December 14 in Brussels] agreed to finance Vietnam an initial US$15.5 billion in the next three to five years.

The partnership will enable Vietnam to transition away from fossil fuels.

The group, through Just Energy Transition Partnership (JETP), will mobilize the amount of public and private finance to support Vietnam’s green transition toward its net zero 2050 goal by accelerating the use of clean energy and transiting away from fossil fuels.

Accordingly, initial contributions to the Vietnam JETP include $7.75 billion in pledges from the IPG together with the Asian Development Bank and the International Finance Corporation (IFC). The Glasgow Financial Alliance for Net Zero (GFANZ), which is coordinating the effort, has pledged to try to mobilize and enable a matching $7.75 billion in private investment.

Vietnam will draft and adopt the Vietnam JETP Resource Mobilization Plan over the next 12 months with the assistance of partner nations, enabling the implementation of the JETP funding and strategy.

The partnership will assist Vietnam in pursuing a variety of challenging new goals, which include: Reducing peak annual power sector emissions by up to 30%, from 240 megatons to 170 megatons, and bringing forward the peaking date by five years to 2030; Limiting Vietnam’s coal capacity to 30.2 gigawatts down from a current planning figure of 37 gigawatts; and accelerating the adoption of renewables to increase the renewable energy ratio to 47% of electricity generation by 2030, up from 36% currently.