Japan, US, Australia to support decarbonization in Vietnam

Government-backed financial institutions from Japan, the United States and Australia have pledged to support Vietnam's efforts to cut carbon emissions.

The chairman of the Japan Bank for International Cooperation revealed the plan at an Indo-Pacific business forum in Tokyo on Thursday.

The bank, together with the US International Development Finance Corporation, and Export Finance Australia, will launch a new framework for support.

In consultation with the Vietnamese government, they will help the Southeast Asian nation switch to thermal plants fueled by liquefied natural gas and expand the use of renewable energy.

They also aim to create business opportunities by introducing technologies for decarbonization.

Vietnam has set a goal of achieving net-zero emissions by 2050. It faces the difficult challenge of maintaining economic growth while reducing its reliance on coal for power generation.