Luxembourg, Viet Nam partner on urban climate change response

During the COP30 Conference in Belém, Brazil, from November 18-19, the head of the Vietnamese delegation, Deputy Minister of Agriculture and Environment Le Cong Thanh, along with representatives from the Ministry of Finance, the International Cooperation Department, and the Department of Climate Change, held a bilateral meeting with Mr. Serge Wilmes, Luxembourg’s Minister of the Environment, Climate and Biodiversity.

The discussion allowed both sides to explore in depth the potential for cooperation and to define priority areas for the near future, especially as Viet Nam and Luxembourg pursue net-zero targets and sustainable development anchored in green solutions.

At the meeting, Minister Serge Wilmes said that, building on the direction set at the 1992 Earth Summit, Luxembourg is developing a new climate finance strategy, increasing its contribution from USD 220 million to USD 320 million. The aim is to empower communities and accelerate the on-the-ground implementation of climate actions through practical, locally adapted solutions. Luxembourg has selected Viet Nam as one of its core cooperation partners under this framework.

Deputy Minister Le Cong Thanh expressed high appreciation for Luxembourg’s strong commitments in climate finance, biodiversity conservation, and climate adaptation, areas that Viet Nam prioritizes and is actively advancing.

He noted that Hue City had recently suffered severe flooding, and projects supported by Luxembourg in the area have shown clear effectiveness. With its distinct characteristics as a green city surrounded by a vast lagoon system, Hue urgently needs models for sustainable, climate-resilient urban development. Viet Nam hopes to draw on Luxembourg’s experience in green urban planning, conserving nature within cities, and developing balanced urban models that integrate built environments with green space. Approaches to urban forest management, expanding green areas, and reducing emissions in cities are also expected to be applicable to major urban centres such as Hanoi and Ho Chi Minh City.

On this basis, the Vietnamese side proposed expanding the cooperation framework to cover a wide range of fields: climate change response, ecosystem-based adaptation, biodiversity conservation, carbon market development, green finance, and the circular economy.

Minister Serge Wilmes affirmed his full support for this direction, emphasizing Luxembourg’s commitment to investing in climate change response and related fields.

The Luxembourg side indicated that Viet Nam would be a focal country for cooperation over the next five years. For Hue City in particular, Luxembourg is ready to support financial planning and urban greening efforts. The two sides are also collaborating on green growth initiatives through the Global Green Growth Institute (GGGI). In Ho Chi Minh City, Luxembourg continues to assess areas where additional support could be provided.

Luxembourg acknowledged Viet Nam’s efforts in responding to the recent floods, having witnessed the urgency with which the military and local residents in Hue City worked to stabilize lives. This, they noted, embodies the spirit of the “Mutirão COP30” message, which calls for collective global action to address climate challenges.

Deputy Minister Le Cong Thanh added that Viet Nam is currently developing new urban areas and formulating criteria to ensure harmony between urban development and natural space. One major project is the new urban area planned for the Can Gio region of Ho Chi Minh City. Viet Nam is also finalizing standards and indicators to attract green finance flows.

The comprehensive green finance cooperation agreement signed between the two countries’ Ministries of Finance in May 2023 has laid an essential foundation for sharing experience, strengthening capacity, and promoting green investments in renewable energy, environmental protection, and sustainable development. Viet Nam hopes Luxembourg will continue supporting the mobilization of green and nature capital, the development of financial instruments such as green bonds and forest conservation funds, and the provision of technical assistance for carbon market development and the Measurement, Reporting, and Verification (MRV) system aligned with European standards. Viet Nam also proposed that Luxembourg connect its investor community with priority projects on green transition and biodiversity conservation.

The Luxembourg side shared that it participates, along with Germany, Japan, and several other countries, in a financial mechanism that provides pre-arranged capital as a form of “insurance” for communities vulnerable to climate risks. This model could be suitable for deployment in Viet Nam.

Concluding the meeting, Minister Serge Wilmes reaffirmed Luxembourg’s commitment to supporting Viet Nam. The two sides agreed that, following COP30, technical focal points would begin detailed work to develop a cooperation framework or Memorandum of Understanding (MoU) on environment and climate; identify priority conservation and nature finance projects; and advance initiatives related to the carbon market and climate change adaptation.