CFA Vietnam Announces 11 Projects in the Race to Tackle Climate Change in Vietnam

DNHN - Contributing to the efforts to respond to climate change in Vietnam, on 23 January 2024, the Vietnam Climate Finance Accelerator (CFA) Program announced 11 projects selected to join the program's second phase.

Supporting the efforts to respond to climate change in Vietnam, on 23 January 2024, the Vietnam Climate Finance Accelerator (CFA) Program announced 11 projects selected to join the program's second phase.

Here is the list of selected projects:

Apeh Viet Dan - A project on responsible and environmentally friendly shrimp farming.

Babio - Researching, producing, and providing environmentally friendly biodegradable self-destructing products.

Cenergy - Producing a domestic redox flow battery line and providing reliable energy storage solutions.

CME Biomass - A comprehensive ecosystem including afforestation, production, and biomass electricity.

Dai Viet International Pharmaceutical Technology Project - Developing a Spirulina platensis algae farming model on an industrial scale, converting carbon dioxide emissions into a high-value nutritional source.

Emmay Joint Stock Company and partners - Creating sustainable protein sources from mushrooms and plants.

Grac - Providing digital solutions for waste management and recycling in Vietnam efficiently and sustainably.

Lagom Vietnam and UPP! UpCycling Plastic Joint Venture - Recycling low-value and hard-to-recycle plastic waste.

Selex smart electric vehicle project.

TGS Tra Vinh Plant's 2.5MW green hydrogen/ammonia production pilot project.

Vietnam Food (VNF) - Applying zero-waste biotechnology to process shrimp by-products into valuable applicable products.

The UK Government-funded Climate Finance Accelerator (CFA) Vietnam has selected 11 projects to enter its second phase, building capacity in the low-carbon sector and creating opportunities to attract investment from both domestic and international investors.

The CFA plays a key role in delivering the commitments made by Prime Minister Pham Minh Chinh at COP26 in Glasgow in 2021 and supports the implementation of the Vietnam Just Energy Transition Partnership (V-JETP) agreed in December 2022.

The selected projects cover a diverse range of sectors, including clean energy, energy transition, electric vehicles, agriculture, forestry and other land use (AFOLU), circular economy, and waste management. Notably, these sectors have clear policy and regulatory frameworks, minimising the risk of delays in project implementation.

With a strong focus on climate mitigation and carbon emission reduction, the CFA will provide support to enhance the capacity and investment readiness of the projects, covering both general and project-specific capacity needs.

CFA experts will work with the projects to provide technical advice, financial modelling, investment teasers, as well as support on gender equality and social inclusion (GESI) considerations.

Iain Frew, UK Ambassador in Vietnam, highlighted that the diversity of projects entering CFA’s second phase demonstrates the innovation and drive of Vietnamese businesses in addressing environmental challenges.

Following the advisory and capacity-building phase, the projects will have the opportunity to pitch to investors and financial institutions at a dedicated Investor Forum in May 2024. This forum will provide an opportunity to further refine and finalise the financial structure through detailed discussions with interested financial institutions.

The event will also help the projects build networks and inform policymakers about the challenges and opportunities in climate finance.

Dinh Thi Quynh Van, PwC Vietnam Chairman, emphasised that the current context of Net Zero commitments and legal reforms is favourable for low-carbon projects in Vietnam, leading to increased investor interest.

Quy Anh