Vietnam to raise US$368bil to develop climate resilient and low-carbon economy

HANOI, July 16 (Bernama): Vietnam needs to invest approximately US$368 billion from now until 2040 to build a climate resilient and low-carbon economy, according to the Vietnam Country Climate and Development Report (CCDR) released by the World Bank on July 13.

The Vietnam Country Climate and Development Report is one of the first in a series of reports on climate and development of the World Bank Group, Vietnam news agency reported.

The report recommends the amount can be funded by both the public and private sectors and a combination of domestic and international financial sources.

Carolyn Turk, Country Director of the World Bank in Vietnam, said that the country is increasingly seeing its development affected by climate change and now faces critical questions about how to respond.

The Vietnam Country Climate and Development Report is about how the country can maintain its economy growth in the time of climate change, and how it can balance its development goals with increasing climate risks, she said.

With a coastline of 3,260 kilometres that includes major cities and production sites, Vietnam is among the world’s very vulnerable countries and is highly exposed to sea-level rise, extreme weather and temperature rise.

Initial studies show that the country lost about US$10 billion in 2020, equivalent to 3.2 per cent of GDP due to the impact of climate change.

Without appropriate mitigation and adaptation measures, it is estimated that Vietnam will lose up to 15 per cent of GDP per year by 2050, resulting in one million people falling into poverty again by 2030, VNA reported.

"The country’s rapid economic growth, urbanisation, and industrialisation have been powered by coal-dependent energy creating significant greenhouse gas (GHG) emissions,” Turk said.

Vietnam is not a major contributor of greenhouse gas globally, with 0.8 per cent of the world’s emissions. But over the past two decades, the country has emerged as one of the fastest-growing per capita GHG emitters in the world.

Moreover, Vietnam’s GHG emissions are also associated with the toxic air pollution that plagues many of its cities, especially Hanoi, with implications for human health and labour productivity.

She said there is a path for Vietnam to address the climate risks while sustaining robust economic growth - a combination of adapting to climate change by taking decisive measures to protect people, assets, and sectors, and mitigating climate change by steering the economy away from carbon-intensive energy.

If well designed, the country would expand its GDP per capita by more than 5 per cent a year - the average rate needed to become high-income by 2045 while achieving its climate objectives.

According to the report, a series of urgent and impact interventions should be focused on, including a coordinated regional programme for the Mekong Delta, an integrated coastal resilience investment programme for urban centres and connecting infrastructure, a targeted air pollution reduction programme for Hanoi, accelerated clean energy transition, and a new social contract to protect vulnerable people.

Adaptation measures will entail significant investments to upgrade and retrofit public assets and infrastructure. Protective investments to manage rising sea levels will also require substantial financing.

To achieve net-zero, Vietnam will have to make substantial investments in its main emitting sectors, including energy, transport, agriculture, and industry.

Dynamic strategies will be required to curb emissions, especially in the energy sector, where renewables should be promoted, the report revealed. - Bernama

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Aseanplus News

Singapore PM Lee and Japan PM Kishida discuss cooperation on digitalisation and multilateral trade
Six killed and three missing as landslides hit mine in Indonesia's Kalimantan
Russian tourist in Thailand claims Russian mafia extorted US$3mil
Bank Indonesia intervention lifts rupiah from lowest position since 2020
Thai capital Bangkok's ‘congestion charge’ in pipeline as traffic study nears completion
Vietnam reports 1,585 new Covid-19 cases and one death on Tuesday (Sept 27)
Philippines logs 1,555 new Covid-19 cases and 30 deaths on Tuesday (Sept 27)
Vietnam evacuates hundreds of thousands as it braces for Noru, strongest super typhoon in Decades
Singapore's population ageing rapidly: 18.4% of citizens are 65 years and older
'Bossku' still a potent force despite character assassination on Najib, says Zahid

Others Also Read