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

2. LCEE Program Overview Danish support to Vietnam National Energy Efficiency Program (VNEEP) for the period 2013-16 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)

3. 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

4. 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

5. 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.

6. Structure of GIF

7. 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

8. 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

9. 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

10. Steps – Access GIF support

11. Questions

12. Green Investment Facility (GIF) 11th Floor, BIDV Tower 194 Tran Quang Khai Street, Hanoi, VIETNAM Phone: +84 4 32041616 E-mail: fm-info@lcee.vn Website: www.lcee.vnfm-info@lcee.vnwww.lcee.vnContacts