Archive for category: Production and Sustainable Consumption News

The World Bank’s IFC is providing $2 billion for sustainable energy project globally

To underline the dramatic increases in power consumption among developing countries, Vietnam posted a four-fold increase in just a decade to 2008 according to World Bank data and now faces significant power shortage issues. Construction is among the most energy-intensive industries, accounting for 36 per cent of the nation’s total annual energy consumption. Therefore, the sector’s improved energy efficiency is vital to helping energy saving in Vietnam. International Finance Corporation (IFC), a member of the World Bank Group, is helping the country tap this huge potential by developing energy efficient, green buildings. To achieve this, it is supporting the Ministry of Construction to enhance the implementation of the Energy Efficiency Code for Buildings, which has been revised to become more technically and economically feasible to implement. The Code is expected to save 15 per cent of energy consumption on every floor square metre.

“Financing energy efficiency and green buildings is not only vital for a sustainable future, but also a smart business approach,” said IFC’s Asia head of Climate Finance William Trant Beloe.

“This is a sustainable development trend and banks that develop this financial product will have an opportunity to access a new market with less risk, while promoting themselves as banks with high levels of social responsibility with green financing programs,” he told a “Energy Efficient Buildings and Green Buildings Financing” workshop, co-organised by IFC and the Vietnam Banking Association in Hanoi, on December 9, 2014.

IFC’s Sustainable Energy Financing (SEF) programme has provided $2 billion in funding for sustainable energy projects globally through financial institutions In Vietnam, Techcombank and Vietinbank have committed $63 million for energy efficiency projects. These projects together have saved 259,512 megawatt hours and avoided GHG emissions by 130,377 tonnes of CO2 annually. It is expected to have other banks to join the programme.

IFC has also developed the EDGE Resources Efficiency Building Certification system, a tool to enable developers to save energy, water and resources in construction materials production, thus reducing GHG emissions. This tool is designed for emerging markets to develop different technical solutions for higher energy efficiency with respective estimated investment costs and savings for developers to choose the appropriate “green” levels for their projects.

Trant Beloe said IFC provides long-term credit lines to local banks that banks use to lend green building developers. IFC supports the design of appropriate financial products for each of its partner banks and technical assistance to partner banks to develop sustainable energy financing products encompassing energy efficiency, cleaner production in industries and energy efficient green buildings. This advisory programme includes capacity building for banks in sustainable energy financing and supports partner banks to participate in developing a sustainable energy finance market in Vietnam including green building finance. With EDGE, bank staff can also perform loan valuations for green homes more efficiently and have a better definition of green buildings as an “asset class”.

IFC is also active in training bank staff in energy efficient or green building financing as well as heightening developers and home buyer awareness of green financing options, providing an e-tool for green buildings and organizing workshops and forums to highlight energy efficiency opportunities to consolidate and fully tap the green building market’s rich potential in Vietnam.

Source vir.com.vn

Germany has offered a loan worth 200 million euros for Vietnam’s energy sector during a recent visit by Dr. Friedrich Kitschelt, State Secretary in the Federal Ministry for Economic Cooperation and Development of Germany, to Vietnam.

Dr. Friedrich Kitschelt, State Secretary in the Federal Ministry for Economic Cooperation and Development of Germany, poses for a group picture in his visit to Lilama 2 vocational school in the southern province of Dong Nai during his visit to Vietnam from November 28- December 3, 2014. (Photo courtesy of the The German Embassy in Hanoi).

Dr. Kitschelt’s working trip, which lasted from November 28 to December 3, focused on the three following areas: vocational training, energy and environment.

During the visit, the Federal Ministry of Economic Cooperation and Development of Germany granted the preferential loan package aimed at modernizing the network transmission and distribution of electricity in medium and small cities in Vietnam.

“Efficient energy use is the focus area in green growth strategy of Vietnam. We believe that improved power grids applying new technologies will reduce energy consumption and reduce CO2 emissions during transmission, while ensuring the supply of electricity at low cost,” said Dr. Kitschelt.

“Thereby, Germany has contributed significantly to securing supplies as well as regional economic development and environmental protection for Vietnam,” he added.

During the six-day visit, State Secretary Kitschelt also witnessed the signing of a loan agreement worth 100 million euros with the Ministry of Finance of Vietnam for the improvement of the power grids in the capital city of Hanoi.

In addition, State Secretary Kitschelt also joined high-level talks with the Minister of Planning and Investment and the Vice Minister of Finance about policies to promote the private sector, as well as the framework conditions for economic development in Vietnam in the future in accordance with the National Strategy for Green Growth.

State Secretary Kitschelt also visited a Germany – Vietnam vocational training project and lauded the close cooperation between vocational training centers and German Bosch Group.

“During the vocational training, young students participating in the enterprise will accumulate experiences and best practices. As a result not only the participants, but also the businesses that invest in the training process will benefit from the training process, because after graduation they can start work right away,” said the German State Secretary.

During the high-level talks, the German State Secretary also proposed that the government of Vietnam create conditions for local enterprises to adapt this training model.

Source: tuoitrenews.vn

The balance between quality and quantity in the Vietnamese pangasius industry has not been right thus far, admitted deputy director general of the directorate of fisheries, Pham Anh Tuan.

Producers have not done a good job either of ensuring standards in the race to expand, or of addressing the needs of the local market while it focused efforts on the US, EU and Japan, said Tuan, addressing the GOAL 2014 conference in Ho Chi Minh.

Now is the time for industry to consider a restructure, added Vo Thi Thu Huong of the Vietnamese Chamber of Commerce and Industry.

The production growth rate has finally slowed following a rapid increase since 2000, and as input costs have risen (largely on feed), demand in key markets, and so prices, have fallen.

“Now is the time to think about restructuring, with a focus on quality and certifications,” said Huong. The Vietnamese government has been supportive of pangasius already, with its decree 36 turning the industry into a strongly regulated one, she said.

“I hope this support continues, and from exporters and buyers in other countries too. We need to shift focus to a better quality product, adding value to our exports.”

The monitoring of producers should remain a priority, added Tuan. “For too long producers focused on increasing volumes, and on their revenues, at the cost of quality and sustainable development.”

Huong called for cooperation and a multi-stakeholder approach in bringing small scale farmers up to the necessary standards, and was one of many speakers to praise the model being introduced by National Fish and Seafood of clustering small farmers.

Among challenges faced by the pangasius industry, Tuan noted disease was almost as great a threat for the whitefish as it is for shrimp – for which total sales are expected to reach $3.5 million in 2014, up from $3.3m last year.

Production costs for pangasius, going towards feed, chemicals, and the cost of upgrading to intensive production, now add up to around 80% of the selling price, he said.

Tuan echoed Minh Phu chairman Le Van Quang in speaking about the pressures, and costs, on producers trying to catch up to certification standards. He too suggested that one harmonized scheme could save companies, and end consumers, money.

Vietnam aims to have 100% of its pangasius farms certified to its own VietGAP standard by December 2015, and this will need to be benchmarked against the many other standards, he said.

Source: Neil Ramsden, undercurrentnews.com