Climate Change and Green Growth in Vietnam

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The development objectives of Climate Change and Green Growth Project for Vietnam are: a) improving inter-sectoral coastal planning and public investment finance programming across selected key sectors in support of climate change and green growth action; (b) developing and safeguarding selected natural resources services; and (c) promoting selected cleaner production systems. This program document describes the first, single tranche operation for a credit in the amount equivalent to 90 million US dollars in a series of three development policy financing (DPF) operations to the Socialist Republic of Vietnam. The operation will assist the Government of Vietnam (GoV) strengthen its climate change and green growth reform action as a contribution to improving sustainability and quality of growth. It builds on the first Climate Change DPF series, the World Bank’s sustained dialogue on climate change and green growth with Vietnam, including coordinated lending and advisory support, and strong government ownership of program objectives. A window of opportunity exists in the context of the 2016-2020 Socio-Economic Development Plan (SEDP) before the post-2020 period, to accelerate reforms that can strengthen the country’s resilience to climate change and promote a lower-carbon, greener growth development path. The operation supports the government’s goal to enhance the enabling environment for climate change and green growth interventions in Vietnam, building on the priorities identified jointly by the government and Development Policies (DPs) and in support of the SEDP 2016–2020. The engagement areas are consistent with priorities articulated in the Bank’s Country Partnership Strategy (CPS) for Vietnam (2012–2016). The formulation of the Post-2015 SP-RCC has benefited from Bank engagement on climate change and sector-specific engagement 10 with the government. The programmatic series of operations offers the opportunity of a focused platform to promote reforms in key complex areas and in a challenging context where changes take time, such as for the development of renewable energy, energy efficiency, and for addressing climate risks in key vulnerable areas.