G7 makes new $15bn offer to Vietnam to cut coal use: source – SABC News

The Group of Seven industrialized nations (G7) has made a new offer of $15 billion to Vietnam to agree at a summit next week on financing to accelerate the transition away from coal, three people familiar with the talks told Reuters .

Vietnam, which is among the world’s 20 biggest coal users, was originally scheduled to sign up to the so-called Just Energy Transition Partnership with G7 nations at the COP27 world climate summit in November, but talks at a high level were interrupted before the meeting.

To persuade Vietnam to back the proposal, Western negotiators led by the European Union and Britain proposed a larger financial package that included $7.5 billion made up almost entirely of public sector loans and the same amount in private sector pledges. sources said.

All three Western officials, who declined to be named because the talks are confidential, said it would be the last proposal from the G7 before a summit of the European Union and Southeast Asian countries in Brussels on December 14, which officials from The EU has repeatedly indicated a new target date for a deal.

The offering has gradually expanded from an initial pledge of just $2 billion in public funds with unspecified additional private backing.

It is unclear whether it could be further revised if no agreement is reached next week.

The Vietnamese government and the European Commission did not respond to emailed requests for comment.

It remains unclear whether Vietnam would be willing to accept the increased offer, as its core concerns do not appear to have been addressed.

The Southeast Asian country has asked for more grants as it has traditionally resisted taking on large loans.

One of the sources said there was a “50/50” chance of a deal next week. Other noted conversations are still ongoing and the final numbers may still change slightly.

Vietnam’s energy security remains potentially at risk as the G7 plan focuses on renewable energy, which could lead to power shortages in the booming nation without reliable backup in the event of low output from wind farms or solar panels.

Immediately after talks broke down in November, when Vietnamese authorities canceled a meeting that had been scheduled to take place in Hanoi with top US and EU climate envoys, sources said, the country’s industry ministry circulated a new draft of its long-term energy plans , which increased coal use compared to a previous version of the same document.

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