Deputy Prime Minister Tran Hong Ha receives French Development Agency CEO Rémy Rioux. (Photo: VNA)

Deputy PM Ha expressed his wish for AFD’s technical assistance to improve the legal environment for the transition to green economy, green investment and green finance. This includes developing a budget for climate change adaptation, building a carbon credit market, diversifying energy sources, achieving a sustainable energy balance, and fulfilling commitments to addressing climate change, such as afforestation and greenhouse gas emission reduction.

By joining the Just Energy Transition Partnership (JETP) agreement with G7 and other developed countries, Vietnam demonstrates its high commitment and responsibility towards global issues, particularly in climate change response, he said.

Apart from helping Vietnam access modern technology for the development of green and renewable energy, he highlighted the need to build a global financial mechanism to pool investment in practical and core research on a smart grid system, transportation and export of renewable energy, and the production of green fuels.

The host wished that in the near future, the support models and projects of AFD, which boasts 30-years of experience in working in Vietnam, would be cross-regional and cross-sectoral. AFD would partner with scientists and businesses to study and commercialise renewable energy technology, produce green fuels and develop a smart grid system.

According to the Deputy Prime Minister, Vietnam could become an example of a developing country that successfully carries out JETP with support in resources and its financial mechanism.

Deputy PM Tran Hong Ha receives French Development Agency CEO Rémy Rioux: CEO Rioux, for his part, said AFD has funded 84 projects with a total commitment of over 2 billion EUR to help Vietnam adapt to climate change. (Photo: VNA)

CEO Rioux, for his part, said AFD has funded 84 projects with a total commitment of over 2 billion EUR to help Vietnam adapt to climate change. During 2006-2022 alone, it disbursed about 1.1 billion EUR for 30 development projects.

About funding for public projects within the JETP framework, he said AFP vows to add the social impact of the energy transition process, as well as support the analysis of the Vietnamese Government's options when participating in this agreement.

AFD also wants to cooperate with the State Bank of Vietnam (SBV) and State-owned commercial banks to increase support for the private sector, especially in the financial system, he said.

According to him, the Agency recently asked the SBV to build a comprehensive programme to support the transition of the financial system, similar to what has been implemented in Indonesia and India to attract private investment for renewable energy development.