Hanoi, Vietnam, May 24, 2013
—The Investment Climate Advisory Services of the World Bank Group is joining Ministry of Construction’s efforts to improve energy efficiency in buildings to reduce energy costs and greenhouse-gas emissions.
Under the cooperation agreement signed today, IFC, a member of the World Bank Group, will help the ministry develop procedures and capacity to promote the Building Energy Efficiency Code. The code took effect in 2005 but has not been widely implemented due to a lack of specific guidance and enforcement. Last year, IFC signed a memorandum of understanding with the Vietnamese government to support it in revising the code, which is expected to be released later this year.
“This cooperation agreement consolidates a strong partnership between the Ministry of Construction and IFC in promoting energy efficiency in the building sector, following the memorandum of understanding signed in 2012,” said Phan Thi My Linh, vice-minister of construction. “With IFC’s support, we believe this agreement will contribute to the implementation of the National Target Program on Climate Change Adaptation, the National Target Program on Energy Efficiency, and the National Green Growth Strategy.”
IFC will also help the ministry develop user guides, technical checklists for the code’s implementation, and training materials on energy efficiency in buildings. The program, to be implemented between 2013 and 2017, aims to save as much as 15% of energy consumption per floor square meter in new buildings.
“The building sector is among the biggest energy users in Vietnam, accounting for about 36 percent of national energy consumption,” said Wendy Werner, IFC’s investment climate advisory services manager for East Asia and the Pacific. “Energy efficiency will help building developers reduce operating costs and contribute toward a low-carbon economic growth path.”
A World Bank report shows that Vietnam’s electricity consumption jumped fourfold between 1998 and 2008, contributing considerably to carbon dioxide emissions, which increased at an estimated 12 percent a year. Promoting energy efficiency in the building sector will help the country achieve its target of 8-10 percent reduction in greenhouse-gas emissions between 2011 and 2020.
IFC has also been supporting the Ministry of Industry and Trade in promoting energy efficiency in the industrial sectors and facilitating local financial institutions to finance energy-efficiency and cleaner production projects, which will help enterprises reduce energy costs and raise their productivity and environmental performance.
IFC’s program with the Ministry of Construction is implemented in partnership with the Switzerland’s State Secretariat for Economic Affairs (SECO).
About the Investment Climate Advisory Services of the World Bank Group
The Investment Climate Advisory Services of the World Bank Group helps governments implement reforms to improve their business environment, and encourage and retain investment, thus fostering competitive markets, growth and job creation. Funding is provided by the World Bank Group (IFC, MIGA, and the World Bank) and more than 15 donor partners working through the multidonor FIAS platform.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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