Danish-Vietnamese Programme on Low Carbon Transition in Energy Efficiency in Vietnam Green Investment Facility

LCEE Program Overview Danish support to Vietnam National Energy Efficiency Program (VNEEP) for the period with a total funding of 65 million DKK (11.7 Million USD). Component 1:  Supports the Ministry of Industry and Trade (MOIT) in promoting energy efficiency in the SMEs with a focus on the brick, ceramic and seafood processing sectors Component 2:  Supports the Ministry of Construction (MOC) in implementing the new Energy Efficiency Building Code (EEBC)

GIF Objective, Sectors, Provinces Objective:  SMEs in at least 3 sectors (bricks, ceramics and food processing) adopt energy efficiency measures that will contribute to the Vietnam National Energy Efficiency Programme (VNEEP) energy savings targets of 5 – 10% Provinces:  Ha NoiHai PhongBac NinhDa Nang  Quang NamCan ThoVinh LongHo Chi Minh City  Dong ThapBinh Duong

GIF - Basics  VND 110 billion facility to stimulate Energy Efficiency (EE) investments by SMEs  Direct target group: SMEs including the Energy Service Companies (ESCO) operating in the Brick, Ceramic and Food Processing Sectors. Other sectors can be considered  Indirect target group: Banks, Suppliers and Service providers in the Energy Efficiency business  Expect to support about 100 to 130 SMEs during 2015/16

GIF – Instruments of Support  Bank Guarantee Facility (VND 200 million to 2 billion) to support EE investments by SMEs: Covering 50% of the value of the loan; Issued in favour of any lending bank chosen by the SME.  Energy Savings Award (10-30% of Loan - VND 20 million to 1.2 billion) towards the partial repayment of the SME’s loan, on achievement of the committed energy savings.

Structure of GIF

Qualifying Criteria for GIF support  Capital is 100% domestic owned  At least a 20% reduction in energy use or CO2-emission, in the specific production step or equipment of the proposed EE project and comply with the Vietnamese regulations  SME as per the Vietnamese regulations o Employs less than 300 people or o Capital is less than VND 100 Billion  Proposed EE project has not been implemented already  The Enterprise is established and operational

Qualifying Criteria for GIF support  Loan for the proposed EE project is above VND 400 million  Total subsidies from GIF and other schemes and donors is limited to 30% of the loan for the proposed EE project  SME commits to allow visitors to learn from the proposed EE project and the publication of case studies to stimulate replication

SME’s preparation to implement the EE Project  Mobilize the enterprise’s share of investment  Provide collateral for 50% of the loan  Start discussions with their bank to check their willingness to support the Enterprise with an Energy Efficiency loan  Conduct a feasibility to understand the benefits and costs, apart from the technical and economic implications of the proposed EE investment  Technical and Human Resource capabilities

Steps – Access GIF support

Questions

Green Investment Facility (GIF) 11th Floor, BIDV Tower 194 Tran Quang Khai Street, Hanoi, VIETNAM Phone: Website: