The World Bank (WB) on February 2 approved a US$70 million credit project to help Vietnam tackle climate change challenges.
The credit will be channeled from the International Development Association, a concessional lending resource for low income countries.
The credit has a 25-year maturity with 5-year grace period.
“The objective of this specific operation is to support Vietnam in its efforts to address climate change by adopting policies and strengthening institutional capacity to promote climate resilient and lower carbon intensity development,” the bank said in a press release issued on February 2.
The programme focuses on four policy goals under the three thematic pillars of adaptation, mitigation and cross-cutting issues, including climate-resilient development, lower carbon intensity, strengthening the capacity and preparedness to formulate, prioritise and implement climate change policies and strengthening the financing framework to support climate change action.
According to the WB, Vietnam is one of the most vulnerable countries affected by climate change, in particular to floods, storms, and sea-level rise.
Climate change poses a significant threat to economic, social and human development, as well as the environment in the country. Impacts from climate change in Vietnam are expected to take a heavy toll on public finance.