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Australia sponsors USD 50 million to develop green transport in Vietnam

Through expert financing from Export Finance Australia (EFA) and the Australian Climate Finance Partnership (ACFPC), Australia will support the production of public electric buses and helped establish Vietnam's first national EV charging network.

According to Australian Ambassador to Vietnam Goledzinowski, “This investment shows that Australian Government agencies are working effectively with agencies in the Vietnamese system to bring strategic benefits to both Vietnam and Australia. The Australian Government is ready to support Vietnam in all its energy needs for Vietnam to succeed in its transition towards net zero emissions.”.

source: Australian embassy
source: Australian embassy

This $50 million investment marks EFA's second deal in the renewable energy sector in Vietnam. Previously, EFA provided US$32 million to 3 wind power farms in Vietnam to meet the investment needs for the infrastructure of these facilities.

Previously, on 24th October 2022, the Asian Development Bank (ADB) said it had raised a funding package worth $135 million for VinFast to produce the first fleet of all-electric public transport buses of Vietnam and the first nationwide electric vehicle charging network. The 7-year financing package includes $20 million in ADB-financed loans, $87 million in parallel loans catalysed by ADB as authorized arranger, and a incentives worth $28 million.

Along with that, Australia is also participating in investments with the Asian Development Bank and other financial institutions. Part of Australia's support is being provided through the ACFP, which provides concessional financing to help pave the way for large private sector investments in the climate sector.

In fact, transport activities account for 18% of annual greenhouse gas emissions in Vietnam. The process of reducing carbon emissions, through solutions such as traveling by electric vehicles, will directly impact Vietnam's expectation of achieving net zero carbon emissions by 2050. Most of Vietnam's major cities have been facing air pollution, with Vietnam's annual average PM2.5 concentration about 24.7 ug/m3, 5 times higher than recommended by the World Health Organization (WHO)

Decision No. 876/QD-TTg clearly states that green energy transformation is the most basic and important task in the process of implementing green growth goals as well as implementing Vietnam's commitments at the COP26. At the same time, it is also an opportunity for the Transport industry to have a synchronous development towards modernization and sustainability, catching up with the world's advanced development trends and levels.

Source: the Internet



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