Joint Statement with U.S. International Development Finance Corporation, Department of Foreign Affairs and Trade, and Export Finance Australia
Japan, Australia, and United States Promote Projects for Net Zero Greenhouse Gas Emissions of Vietnam

• Region: Asia
• Infrastructures
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) announced today a joint statement^*1 on the Vietnam Climate Finance Framework (VCFF) with the U.S. International Development Finance Corporation (DFC), the Department of Foreign Affairs and Trade (DFAT) of Australia, and Export Finance Australia (EFA). The VCFF supports Vietnam’s goal of achieving net zero greenhouse gas (GHG) emissions.
     
2. The DFC is the U.S. government’s development finance institution that was established to mobilize and facilitate the investment of private capital in the economic and social development of emerging market countries by offering financing, political risk insurance, and other financial tools for developmental projects. The DFAT is a department of the Government of Australia that works with international partners and other countries to tackle global challenges, increase trade and investment opportunities, and protect international rules and keep the region stable. EFA is the Australian government’s export credit agency, which plays an impactful role in financing Australian exports and interests, including overseas infrastructure developments. In 2018, JBIC and these other organizations launched the Australia-Japan-United States Trilateral Infrastructure Partnership (TIP)^*2, and since then they have been strengthening their cooperation in developing infrastructure in the Indo-Pacific region.
     
3. In Vietnam, balancing steady economic growth and decarbonization is an urgent issue. Also, the Government of Vietnam announced its goals to become a high-income country by 2045 and to achieve net zero GHG emissions by 2050. The Government of Japan aims to actively support Vietnam in achieving net zero GHG emissions by sharing the technology and knowledge of Japan based on the Asia Zero Emissions Community (AZEC) Concept, which the Government announced in January 2022, and contributing to the Just Energy Transition Partnership (JETP) with Vietnam, which was launched by relevant countries in December 2022.
     
4. The partners of the TIP dispatched a joint mission^*3 to Vietnam in October 2022 and also held virtual conferences with the Central Economic Commission of the Communist Party of Vietnam and a relevant ministry in January 2022^*4 and October 2020^*5, when they affirmed that they would cooperate to address energy transition and the growing demand for energy in Vietnam, by leveraging the financial schemes of each country. The VCFF further enhances the initiatives that have been built under the TIP and supports the decarbonization and energy transition of Vietnam in multiple sectors, including the power sector, by making full use of the financial schemes of the aforementioned institutions of Australia, Japan, and the United States. Furthermore, the VCFF aligns with the initiatives that aim to promote economic growth and sustainable infrastructure investment in cooperation with nations that share the values of achieving a “free and open Indo-Pacific.” It also contributes toward such frameworks as the Asia Zero Emissions Community and the Just Energy Transition Partnership with Vietnam.
     
5. As Japan’s policy-based financial institution, JBIC will continue to contribute toward the further development of economic relations between related countries to tackle global issues such as decarbonization and energy transition by collaborating closely with such overseas governments and policy-based financial institutions.
     

Note

1. *1 
   See the joint statement.
2. *2 
   See Press Release on November 12, 2018.
3. *3 
   For the outline of the joint mission in October 2022, see Topic on January 12, 2023.
4. *4 
   For the outline of the virtual conference held in January 2022, see Topic on February 22, 2022.
5. *5 
   For the outline of the virtual conference held in October 2020, see Topic on November 12, 2020.