Ho Chi Minh City (HCMC) Government held “The Green Growth Development Investment Promotion Conference” and presented 28 green projects with an estimated total investment of VND 16 trillion (about USD 66 billion). There are over 200 people including global enterprises, international organizations, diplomatic and consular representatives participated the event.
The HCMC-World Bank Joint Working Group (HWG) outlined “The Low-carbon Urban Project in HCMC” at the conference. The total investment is approximately USD 250 million, with USD 170 million in low-interest loans provided by the World Bank, USD 50 million in non-refundable aid from the Dutch government, and the remaining USD 30 million as matching funding from the HCMC Government.
The projects include upgrading LED streetlights, installing rooftop solar system, increasing the coverage of energy-efficient installations, and Electric Vehicle (EV) replacement during the 2025~2030 period.
The HWG estimates that the project could save HCMC USD 41 million annually in electricity bills, and the private sector could save USD 84.2 million. And it also generates carbon credit revenues. If calculated at a carbon credit price of USD 20 per TOE (ton of carbon dioxide equivalent), it is projected to generate USD 67 million over the next 10 years.
Representatives from Samsung HCMC Complex (SEHC), a subsidiary of Samsung Electronics, expressed their interest in rooftop solar power investment at the conference. SEHC had already installed a solar panel system for its factory at the Saigon Hi-Tech Park (SHTP) in HCMC.
Phan Ngoc Anh, Director of Alena Energy, a solar power developer in Vietnam, mentioned that they aim to develop battery charging stations with sizes just the same as small beverage vending machines. According to him, replacing 10,000 motorcycles with EVs could result in an annual reduction of 6,250 tons of CO2. The data from the transition to clean energy through rooftop solar and EVs can be registered for Renewable Energy Certificates (REC) or carbon credit offsets.
In addition, HCMC is actively building carbon credit market. Phan Van Mai, Chairman of the People's Committee of HCMC, said that they are collaborating with the World Bank to boost the carbon credit market. The draft of the market operation framework is expected to be completed before the visit of the World Bank President to Vietnam in March of this year.
Carolyn Turk, the Country Director of the World Bank in Vietnam, stated, “the carbon credit market is a valuable asset”, and hopes HCMC can sell it in the voluntary carbon market, and they will strive to assist in its realization. The World Bank has designated the HCMC Financial Investment Company (HFIC) responsible for the HCMC carbon credit market.
Phan Van Mai mentioned that HCMC will expedite the completion of “The Green Growth Strategy framework to 20230, with a vision to 2050”, and comprehensively update goals and tasks. He added, “transforming vehicles to reduce emissions, developing green buildings, rooftop solar energy, energy transition, and carbon credit will be top priority.”
