Denmark strengthens its support for Vietnam’s Green Growth through a new programme handling energy efficiency in Small and Medium Enterprises and in large buildings.
There is huge potential in improving energy efficiency in brick kilns, Bac Ninh province. (Photo: Nguyen Xuan Quang)
As a result of a long-term dialogue on low carbon transition within the energy sector in Vietnam, specifically targeting energy efficiency initiatives between the Governments of Vietnam and Denmark, a new project entitled “Low carbon transition in energy efficiency sector in Viet Nam” has been signed by Danish Ministry of Climate, Energy and Buildings (MCEB) and Vietnamese Ministry of Industry and Trade (MOIT) in November 2012, funded by the Global Framework under the Climate Envelope 2012.
The project takes place from January 2013 to December 2015 including an inception phase of 6 months, covering a total budget of DKK 65 million. In alignment with the present cooperation within energy efficiency under the Danida climate change adaptation and mitigation programme (2008-2015), this project provides targeted budget support to the Vietnam Energy Efficiency Programme (VNEEP, 2006-2015).
The project consists of two components: The first supports the Ministry of Industry and Trade in promoting energy efficiency in the Small and Medium Enterprises (SME) with a focus on the brick, ceramic and food processing sectors while the second provides support to the Ministry of Construction (MOC) in implementing the building codes for energy efficiency.
The development objective of the project is: “Improved energy efficiency in small and medium enterprises and buildings in Viet Nam contributes to sustainable development and a transition to a low carbon economy”. This objective is consistent with both the VNEEP phase 2 objectives and current Danida support to VNEEP.
The immediate objectives and activities are identified as:
Component 1 – Energy efficiency in SMEs: “Small and medium enterprises in at least 3 sectors adopt energy efficiency measures that will contribute to the VNEEP energy saving targets of between 5-10%. This objective will be achieved through support to project #2.3 under the VNEEP 2011-15, complemented by the initiation of lasting partnerships between Vietnamese and Danish industries. Under this component, a budget of DKK 35 million is reserved to support bankable energy efficiency investment projects of SMEs.
Component 2 – Energy efficiency in buildings: “Improved capacity for implementing energy efficiency in large buildings improves and contributes to the VNEEP energy saving targets of between 5-8%.” This objective will be achieved through support to project #3.1/3.2 under the VNEEP 2011-15, complemented by the initiation of a partnership between the MOC (Viet Nam) and MCEB (Denmark).
The Energy Efficiency and Conservation Office (EECO) under the MOIT is the focal point in managing the project.