Feasibility Study for a Green Finance Institution for Vietnam

GBRW Consulting, GBRW Group, Green Finance, Strategic and Financial Planning, Sustainable & Development Finance

GBRW was a key member of a consulting consortium engaged to produce a detailed feasibility study for a specialist green Development Finance Institution for Vietnam.

Access to green finance has been identified by the Government of Vietnam as a national priority. Sponsored by ClimateWorks and in partnership with Vivid Economics and the Asia Foundation, GBRW delivered a feasibility study for a national Green Development Finance Institution. This study engaged a wide range of stakeholders across the Vietnamese and international commercial and development finance sectors. Various ownership, governance, and organisation options were considered and assessed.

The mission of the proposed new Financial Institution would be to catalyse flows of private sector finance to Vietnam’s burgeoning renewable energy sector by providing a variety of risk management tools currently missing in the market. It would also form a national centre of best practice on renewable energy project financing, generating advisory fees as well as participating in transactions.

The optimal option was presented to the State Bank of Vietnam with a provisional business plan and financial projections developed for further consideration. It is hoped that the study will play a key role in supporting the achievement of Vietnam’s Nationally Determined Contributions agreed under the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC).

Deliverables included:

- Development of concept note for grant award

- Stakeholder analysis and survey of a wide range of private sector financiers, government ministries and agencies, International Financial Institutions, and development agencies

- Sector and policy research and analysis around solar and wind energy markets, mass transit and fuel efficiency, residential and industrial energy efficiency

- Feasibility study outlining a range of business and operating models, governance structures and modalities, and financial projections.

- Formal presentation to the State Bank of Vietnam and coverage in national media