WB approves credit to support Vietnam’s response to climate change

The World Bank in Vietnam announced on June 6 that the Bank’s Board of Executive Directors have approved US$84.4 million of credit from the International Development Association (IDA) to support Vietnam’s multi-sectoral policy reforms so as to promote climate-resilient landscapes and green transport and energy systems.

Hanoi streets flooded after a heavy rain (Source: VNA)
Hanoi streets flooded after a heavy rain (Source: VNA)

The Climate Change and Green Growth Development Policy Financing aims to consolidate and expand on the achievements of the government’s Support Programme to Respond to Climate Change 2016-2020 (SP-RCC).

This includes supporting policies that should lead to increased protection of water sources, application of water-saving practices over larger areas of farmland, additional reductions in vehicle emissions, and further scaling up of renewable energy.

Ousmane Dione, WB Country Director for Vietnam, said that the new developmental financing will focus on areas which present the greatest opportunities for transformational interventions to address climate change challenges.

It reflects the bank’s strong commitment to help Vietnam maintain momentum under SP-RCC while building a bridge to a new, post-2020 phase of climate action, he stated.

The programme will support the government’s climate mitigation actions by strengthening the resilient management of landscapes and natural resources and increasing the effective management of related public investments.

These policy reforms include the establishment of more stringent vehicle emissions standards, the adoption of a new national energy efficiency programme and enhanced incentive mechanisms to increase the nation’s wind generation capacity.

The programme will also support the country’s COVID-19 response through highly concessional budget support and by supporting policy reforms that will contribute to the national pandemic response.

This includes improving forest management, which helps reduce the risk of emerging zoonotic disease, and increasing investment in natural resources management and climate adaptation, which complements an economic stimulus package aimed at supporting rural incomes and community resilience.