Group of Seven (G7) members finalized the $15.5 billion pledge to help Vietnam reach net-zero emissions by 2050, among which offer more than 300 million, accounting for 2% of a total package which made up mostly of costly loans that Hanoi has been reluctant to accept.
Vietnam pushed for a large share of grants and cheap funding to smooth costly phase-out of coal-fired power plants and replace them with wind farms and other renewables sources. But donors offered mostly expensive loans at market rates amid chronic delays in the country's power projects, especially in the current global context of high interest rates.
The documents settled by donor countries in late October and seen by Reuters the overall public funding was slightly increased to $8 billion from the $7.75 billion, but over half is in commercial loans at market rates. The remaining $7.5 billion are expected to come from private investors in costly loans, but those investments hinge on regulatory reforms and the quality of specific projects, the documents said.
