Vietnam to benefit from new ADB fund for low-carbon technologies

Nhan Dan/VNA – Vietnam is among the first eight countries eligible for assistance from a new trust fund sponsored by Japan and the Asian Development Bank (ADB) to support the adoption of advanced low-carbon technologies in developing countries.

Image of illustration
Image of illustration

The ADB on June 25 announced the establishment of the trust fund, which receives a grant of JPY1.8 billion (about US$17.65 million) from the Government of Japan.

In a press release, the ADB said Japan’s Minister of the Environment, Nobuteru Ishihara and ADB President, Takehiko Nakao have signed a Letter of Intent for Co-operation on Environmental Issues, which will include co-operation for effective implementation of the Japan Fund for the Joint Crediting Mechanism (JFJCM).

It quoted Nakao, saying at the signing ceremony on June 25 that the establishment of the JFJCM was a timely step to help meet the demands of the Asia and Pacific region for sustainable low-carbon infrastructure.

The fund will provide finance to reduce the cost of advanced low-carbon technologies, such as those related to ‘waste to energy’ schemes and smart grids, which often have initial high investment costs and long cost-recovery periods.

With the establishment of the JFJCM, ADB is the first multilateral development bank to have a trust fund for supporting greenhouse gas reduction projects under the Joint Crediting Mechanism (JCM).

The eligible countries of the JFJCM are developing member countries of ADB that have signed memoranda of understanding for the JCM with the Government of Japan.

To date, eight developing member countries are eligible - Bangladesh, Cambodia, Indonesia, Lao People’s Democratic Republic, Maldives, Mongolia, Palau, and Vietnam. The list of eligible DMC is expected to expand.