Vietnam, UK sign clean energy, green finance partnerships

The MOUs were signed at the Vietnam-UK High-Level Economic Conference in London on Thursday.

The clean energy partnership was formalized through an agreement between the UK Foreign, Commonwealth and Development Office and the Vietnamese Ministry of Industry and Trade, signed by British Ambassador to Vietnam Iain Frew and Deputy Minister of Industry and Trade Nguyen Hoang Long.

The MoU outlines collaboration in renewable energy development, coal phase-out efforts, and power grid modernization, aligning with the goals of the Just Energy Transition Partnership.

It also supports Vietnam in strengthening legal frameworks and policies to attract investment in clean energy.

The second MoU established the Vietnam-UK green finance partnership, signed by Ambassador Frew and Vietnamese Minister of Finance Nguyen Van Thang

Under this framework, the UK will provide technical assistance through the UK PACT program to help develop Vietnam’s green capital market, including initiatives to promote sustainable finance within the International Financial Center of Vietnam.

UK PACT (Partnering for Accelerated Climate Transitions) is a flagship program under the UK's International Climate Finance portfolio. 

The program is jointly governed and funded by the UK Foreign, Commonwealth and Development Office and the Department for Energy Security and Net Zero.

The UK was also committed to supporting Vietnam’s green investment environment through cooperation under the UK Growth and Investment Partnership, working with organizations such as British International Investment, the Private Infrastructure Development Group, UK Export Finance, and other UK financial institutions.

“Launching the clean energy and green finance partnerships demonstrates our strengthened climate collaboration," Ambassador Frew said.

“By combining expertise, innovative financial tools, and strategic cooperation, we can deliver sustainable growth and long-term energy security."

To support the clean energy partnership, the two countries announced 11 key technical and financial initiatives under the JETP framework, aimed at accelerating Vietnam’s energy transition.

Among them, British International Investment approved a US$50-million green credit facility for Vietnamese lender VPBank to expand climate financing for small- and medium-sized enterprises.

Meanwhile, the Private Infrastructure Development Group provided $24 million in funding for rooftop solar and electric vehicle projects, along with a $47-million guarantee for Vietnam’s first green bond in the water sector.