COP30: Viet Nam strengthens cooperation with UNIDO on industrial emission reduction

On the morning of November 13 (Brazil time), the Vietnamese Delegation met with the United Nations Industrial Development Organization (UNIDO) on the sidelines of COP30. The two sides discussed cooperation opportunities and programs supported by international funds, including the Green Climate Fund (GCF).

Ms. Rana Ghoneim, Director of Energy and Climate Action at UNIDO, stated that UNIDO is implementing the Global Environment Facility (GEF)-8 replenishment cycle. This includes the Global Decarbonization Investment Accelerator (GDIA) program, which aims to help nations prepare for industrial transformation toward a net-zero trajectory, particularly in hard-to-abate sectors.

GDIA is designed to support developing and emerging economies in accelerating industrial decarbonization in hard-to-abate sectors, starting with cement. Specific solutions involve strengthening policy frameworks, establishing standardized methodologies for emission reduction, and financing investment projects through public-private partnerships.

Through these efforts, GDIA will bridge the gap between international climate finance mechanisms and national industrial transformation needs, ensuring alignment with the 1.5°C goal of the Paris Agreement on climate change.

Additionally, UNIDO is rolling out the GCF Readiness Programme for industrial decarbonization. This initiative aims to build large-scale proposals to assist developing countries in preparing for industrial decarbonization. This is not just a financing mechanism but a catalyst for aligning national industrial strategies to contribute to the global Net-zero objective. Ms. Ghoneim affirmed that UNIDO has extensive global experience collaborating with countries on reducing industrial GHG emissions, particularly in cement production.

Viet Nam’s Commitment to NDC 3.0

On Viet Nam’s side, prior to COP30, the Ministry of Agriculture and Environment collaborated with the United Nations Development Programme (UNDP) and the German Agency for International Cooperation (GIZ) to host a technical consultation meeting on the draft development of the Nationally Determined Contribution (NDC 3.0) for the 2026-2035 period. The meeting assessed Vietnam’s NDC implementation progress and proposed new, more ambitious emission reduction targets for major emitting sectors, including industrial processes.

Mr. Le Ngoc Tuan, Head of the Vietnamese Delegation at COP30 and Deputy Director General of the Department of Climate Change, shared that, according to Vietnam’s draft NDC 3.0, emission reduction in cement production is identified as a crucial measure for cutting greenhouse gases. As early as 2025, Viet Nam plans to pilot the allocation of emission quotas for facilities producing cement, steel, and thermal power.

Mr. Tuan commended UNIDO’s support for Viet Nam’s NDC implementation in the past and expressed a desire for continued collaboration on developing concrete projects to realize the goals of the new NDC phase.

GCF focuses investment on energy transition projects

The Green Climate Fund (GCF) was established in 2010 at COP16 (Cancun, Mexico) to mobilize financial resources for low-emission development and climate change adaptation. A GCF goal is to support developing countries in formulating and realizing stronger climate commitments within their NDCs.

Regarding GHG mitigation, the GCF prioritizes investment in renewable energy, clean energy, buildings, industry, sustainable transport, forest management, and Reducing Emissions from Deforestation and Forest Degradation (REDD+). For adaptation, GCF prioritizes water resource management, sustainable agriculture, climate-resilient infrastructure, ecosystem conservation, and support for vulnerable communities.

To date, the GCF has received commitment pledges of 10.3 billion USD in its first mobilization, 9.9 billion USD for the 2020-2023 period, and 12.8 billion  USD for the 2024-2027 period.

To date, GCF has financed 18 billion USD across 314 projects in 133 developing countries. In Vietnam specifically, the GCF has supported five readiness and preparatory projects totaling 4.7 million USD and financed six other projects with a total capital of 210.6 million USD. Currently, around 19 GCF-accredited entities operate in Viet Nam, including two domestic organizations: the Viet Nam Development Bank (VDB) and the Bank for Investment and Development of Viet Nam (BIDV).

The GCF is showing particular interest in energy projects in Viet Nam, given the potential for regional scalability. Research indicates that ASEAN nations require approximately 80 billion USD to fund the energy transition and boost green exports to the European market. Viet Nam, with its manufacturing and export advantages, can leverage catalytic capital from the GCF and other complementary resources to accelerate this transition. The GCF expressed hope that Viet Nam will become a pioneer nation and a strategic partner for the Fund in the region.