Vietnam Approaches a $15 Billion Climate Pact to Reduce Dependence on Coal

According to those involved with the discussions, a memorandum of understanding to complete a treaty might be inked as soon as at the EU-ASEAN meeting in Brussels.

The distribution of loans and grants, as well as Vietnam's sluggish compliance with prior agreements' goals, are still being discussed in some detail. One of the persons revealed that Pham Minh Chinh, the prime minister, had still not approved the agreement.

Despite efforts made globally to discourage its use to combat climate change, coal usage has grown globally for a number of reasons, including pandemic recovery and Europe's energy crisis.

The package from Vietnam would be the third in a line of huge agreements to speed up the switch to cleaner energy in middle-income nations that are still heavily dependent on coal. 

At the United Nations climate summit last year, South Africa announced the first deal, worth $8.5 billion. The Group of 20 meeting in Bali last month saw the announcement of Indonesia's $20 billion agreement.

The majority of Vietnam's energy comes from coal, although the country's 3,219 km (2,000 km) of coastline is said to be perfect for producing wind power. 

In order to help the nation achieve its goal of being carbon neutral by the middle of the century, the alliance will also provide technical support on how to simplify legislation governing renewable energy.

Source: Bloomberg